Projo Biz Blog

LINCOLN, R.I. -- The Twin River slot parlor and a greyhound owners association have reached a "preliminary agreement" in their dispute over dog racing at the Lincoln gambling venue, according to a federal court filing made late Monday.

UTGR Inc., the holding company that operates the slot parlor, on June 23 filed for Chapter 11 bankruptcy protection, citing among other issues a contract with the Rhode Island Greyhound Owners Association that UTGR said cost it too much money. The 62-year history of racing in Lincoln was interrupted Aug. 8 with the suspension of greyhound racing.

UTGR's owners have looked at operating its own dog kennel as a way to cut costs on the state-mandated greyhound racing required at the venue.

However, it favors a cheaper contract with private kennels to provide enough dogs to run 8 to 10 races a day, four days a week, to meet the legislative mandate of hosting live pari-mutuel betting events on at least 125 days a year.

Neither of those options would make money for UTGR, or its parent ownership group, BLB Investors LLC. They would simply lose less cash than they do now hosting races in conjunction with the greyhound association.

Breaking the contract with the association would allow the slot parlor to drop the $9-million annual fee it pays the group. It also would allow the slot parlor to cut jobs -- at least 18 full-time and 9 part-time positions -- and trim the salaries of another 22 employees.

The slot parlor's owners estimate they could save between $7.5 million and $8.6 million annually, under various alternative live racing formats.

Monday's court filing did not spell out the terms of the agreement reached by the two sides.

 Tags  bankruptcy casinos economy Lincoln RI Twin River

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