Rhode Island Casino Revenue Declines 3.5% Year-on-Year as Bally’s Looks for Smoking Ban Cost Offsets

Rhode Island’s two commercial land-based casinos generated a combined net revenue figure of $52.1 million during April, a 3.5% drop compared to last year’s figure of $54 million.

The monthly report, released by the Rhode Island Lottery, showed that the state’s two commercial venues, Bally’s Tiverton and Bally’s Twin River, recorded table game net revenue of $9 million, a decline from April 2024, which reported $10.6 million in net revenue. 

In comparison, video lottery terminals (VLT) also reported a year-on-year decline, with net revenue decreasing from $43.3 million to $43 million last month. 

Bally’s Twin River Drags Down April Revenue

Bally’s Twin Rivers Casino once again led the way, generating revenue of $39.3 million, compared to the Bally’s Tiverton Casino’s figure of $12.8 million. But Twin Rivers appears to be taking a declining share of the commercial casino sector revenue. 

Twin Rivers’ revenue declined 4.9%, year-on-year, with VLT revenue dropping from $32.5 million to $32 million and table game revenue declining from $8.8 million to $7.2 million. In contrast, Tiverton recorded a 1.1% increase in its revenue in April 2024. VLT revenue rose from $10.8 million to $10.9 million, while table game revenue stayed relatively the same at $1.5 million.  

As a result, Twin Rivers’ share of the market dropped from 77% to 75% while Tiverton’s rose by 2%. 

The Rhode Island gambling sector permits online and in-person casino gaming and sports betting. However, Bally’s venues are the only commercial licensed operators, and they are under an exclusive agreement with the Rhode Island state government. 

Bally’s Press for Smoking Ban Support

Yet, that exclusive relationship may be tested once more in the weeks ahead after Bally’s push for new legislation to modify its existing marketing deal with the state. 

The request relates to the potential for a smoking ban in casinos, which is expected to impact casino revenue. Bally’s is asking for a change in the marketing agreement, which it says would offset the losses it would expect from a smoking ban. 

The bill, filed by the Senate Majority Leader Frank Ciccone, passed quickly through the Senate Committee on Labor & Gaming earlier this week. 

Currently, the two casinos receive reimbursements from the state to cover the cost of marketing of their venues. In the current fiscal year that ends June 30, the combined reimbursements totalled $4.1 million, but under the hypothetical terms of the bill (which could not take effect until the next fiscal year), that total would be $6.9 million, an increase of over 68%.

The Rhode Island Lottery, however, is opposed to the bill, pointing out that it could cost the state treasury over $3 million per year. 

Indoor smoking has been banned in Rhode Island for over two decades, but Bally’s venues were exempt. That seems likely to end in the current legislative session, as the measure has the bipartisan support of most of the key figures in the legislature.