finwhich owns and operates a racetrack casino already offering sports betting and in-state online wagering, which could be the next growth area for Rhode Island gambling.
LINCOLN, R.I. — Rhode Island’s state-sponsored gambling industry is set for another big shift with Twin River Worldwide Holdings Inc. announcing plans to become publicly traded and expand again as it prepares to welcome sports betting to the state this fall.
Twin River said on Sunday that it has a deal to buy Dover Downs Gaming and Entertainment in Delaware, which owns and operates a racetrack casino already offering sports betting and in-state online wagering, which could be the next growth area for Rhode Island gambling.
Dover Downs is publicly traded and to consummate the merger, the privately held Twin River plans to register with the federal Securities Exchange Commission and list shares with either the NYSE or NASDAQ. Twin River shareholders will retain more than 92 percent of the stock in the new company under the proposed deal, which they estimate will close early next year.
The deal appears to have caught Rhode Island Lottery officials, who legally operate and control all gambling in Rhode Island, somewhat by surprise. The Lottery had no comment on the proposed deal Monday.
Lottery spokesman Paul Grimaldi said in an email that he does not believe the Lottery or the state will get a chance to approve the transaction.
“Just as we would with any significant decision, we intend to meet with the Lottery in the coming weeks to discuss the transaction,” wrote Twin River spokeswoman Patti Doyle in an email.
In the Sunday news release announcing the deal, Twin River Executive Chairman John E. Taylor, Jr. said Dover Downs’ experience in “not only brick and mortar casino operations, but in sports betting... will be helpful as we introduce that amenity at our properties, and in the online gaming sector which continues to evolve nationwide.”
International lottery business IGT is currently negotiating with state officials to set odds and process wagers on sporting events at Twin River’s casinos.
But even with IGT running the back end of the sports book operation, Doyle wrote in an email that Dover Downs’ experience could help Twin River fully “integrate” sports betting with the rest of its gambling offerings.
Twin River also owns casinos in Mississippi and Colorado.
“Decisions around sports wagering at other Twin River properties will be made at the appropriate time,” Doyle wrote.
In May, the U.S. Supreme Court threw out federal rules prohibiting expansion of sports gambling and triggered a state-by-state rush into the market.
Dover Downs was allowed to offer limited sports betting even before the high court ruling, but since the May decision, has gone to full athletic wagering in addition to betting on live and simulcast horse racing, Dover Downs President and CEO Denis McGlynn told the Journal in a Monday phone interview.
McGlynn said the deal makes sense because both Twin River and Dover Downs come “from the same pedigree,” of racetracks that have moved into casino gaming. In fact, Delaware officials looked at Rhode Island and Twin River, where dog racing ended in 2010, before they passed legislation allowing slot machines at their tracks.
McGlynn described Dover Downs’ online gambling offerings as a “work in progress.” Bets are only allowed from online devices inside Delaware.
At least one company, Boston-based DraftKings, has urged Rhode Island lawmakers to legalize full online gambling in Rhode Island.
If the deal goes through as planned the new combined company would have annual revenues of $678 million, employ 4,750 people, host 8,620 slot machines and control 1,1198 hotel rooms, according to Twin River.
http://www.providencejournal.com/news/20180723/twin-river-plans-to-become-publicly-traded-offer-sports-betting