Just a short while ago, Rhode Islanders were treated to a refreshing opportunity to see our system of government work the way it should. With one of the two major managers of the state’s gambling line of business challenging a no-bid deal the governor had worked out with the other, it looked like the Ocean State might benefit from an open-bid process bringing in competing proposals and driving down the cost of the contract and/or the benefits to Rhode Islanders.
Oh, well. Twin River and IGT have teamed up to present unified front to the state government:
If the proposed agreement is approved by lawmakers and state gambling regulators, Twin River would evolve from a casino-operating company to one that provides video-slot machines, giving it a large source of the revenue now going to out-of-state game manufacturers and suppliers.
International Game Technology would emerge as 60% shareholder of the new company, with a clearer shot at winning the 20-year contract it has been seeking from the state, without Twin River executives — and the big-name gaming industry players that Twin River had lined up as potential partners in a rival bid — nipping at its heels. Twin River would have a 40% stake.
And as if to capture the full circuit of issues that have illustrated Rhode Island’s flawed approach to government and economic development, Twin River has pledged to open up a new headquarters in the Wexford Innovation Complex, a recent addition to Providence that the governor has huge incentive to see filled with tenants.
Republican candidate, lawyer, and historian Steven Frias has it right when he says, in the first linked article above: “This deal does not automatically become a good one for taxpayers because IGT and Twin River will now be business partners.”
We benefit from competition, whether it’s political parties or private vendors for state, and we shouldn’t assume that it’s a good thing when they work together.