Rhode Island’s Slot Machines Going Under

The largest slot machine parlor in Rhode Island is having serious financial problems and has had to file for bankruptcy protection. UTGR, Inc., the owner of Twin River in Lincoln, RI, has filed for Chapter 11 bankruptcy in an attempt to keep themselves afloat. The slot machine company has incurred large amounts of debt and is seeking a way to restructure their company.
 
This is what Chapter 11 will allow them to do. It will let them free themselves from the creditor lawsuits and reorganize their financial position. The slot machine company has incurred more than a half of a billion dollars in debt, with no foreseeable way of paying that back as it stands now.
 
They can now go through their reorganization, and take it before a judge and their creditors to see if it is acceptable. One of the things they are looking to cut is their greyhound racing. They say that the sport is just not popular anymore, and that it is costing them $10 million a year to keep it running. They would lose about $290 million in their debt, and the state would provide them $11 million a year in promotional and marketing support to get them back on their feet.
 
This will only happen if the latest bill out there allows 24 hour slot machine gambling, as the amount of money that would then be coming in would be substantial. They are looking to save the business as it is a large revenue generator for the state of RI through their slot machines. Without the slot machines they will be looking at much higher taxes.

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