The closure of the westbound Washington Bridge is costing Rhode Island’s sole casino operator half a million dollars in lost revenue a month due to decreased traffic at its Lincoln facility, Bally’s Corp. officials announced Wednesday.
The comments came during a quarterly earnings call where company executives celebrated company-wide revenue of $621.7 million over the last four months — representing a 2.5% increase over the same period last year. At the same time, the Providence-based casino giant reported a net loss of $60.2 million during the second quarter of 2024, compared to the $25.7 million loss in 2023.
Bally’s President George Papanier attributed the revenue growth toward the company’s ongoing work to build a flagship casino and resort in Chicago, along with general stability across the company’s portfolio — though there were some notable exceptions.
“Our Rhode Island properties, particularly Lincoln, was again impacted by the Providence Bridge disruption on Interstate 195,” Papanier said. “This has led to lane closures that disrupt traffic during peak periods, a situation which will continue for the foreseeable future.”
The western side of the Washington Bridge was abruptly closed last December after engineers discovered broken anchor rods that put the westbound section of I-195 at risk of collapse. Since the closure, Papanier said casinos in Massachusetts have increased promotional activity, likely siphoning patrons away from Bally’s Twin River property.
The company estimates the ongoing closure has cost about $2 million on a quarterly basis — or $500,000 a month.
Bally’s Tiverton casino has mostly been unaffected by the bridge closure, Chief Financial Officer Marcus Glover told Rhode Island Current Thursday.
“But everything that is lost at Lincoln doesn’t just migrate to Tiverton,” he said. “In our business, a lot depends on routines and amenities — and those properties are very different.”
State leaders have moved forward with plans to demolish the bridge, awarding Warwick-based Aetna Bridge Co. the $45.8 million contract to tear down the shuttered highway over the Seekonk River. Aetna’s proposal promised to tear down the bridge by Jan. 29, 2025. The state required the demolition to be complete by March 2025 in its bid request.
But who will rebuild the bridge is still up in the air. No companies responded to the state’s request for proposals between late April and the state’s July 3 bid deadline. State transportation officials are now collecting feedback from firms on what should be in the next bid solicitation. The deadline is noon, Friday, Aug. 2, for firms to respond.
Bally’s, meanwhile, remains on track to implode the Tropicana hotel towers in Las Vegas in October, Papanier said. The Rat Pack-era resort is where the Oakland Athletics are planning to build a new stadium as the major league baseball team relocates from California to Vegas.
Construction on the stadium is expected to start some time in 2025, said Bally’s CEO Robeson Reeves.
Wednesday’s earning’s call came a week after Bally’s Corp. announced it was bought out for $4.6 billion by Standard General, the New York-based hedge fund owned by its largest shareholder and board chairman Soo Kim.Company officials did not discuss the topic.
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Instead, they focused on the ongoing construction of Bally’s flagship casino and hotel in Chicago, which has secured $970 million in funding. Funding for the project includes a $395 million sale-leaseback of Bally’s Kansas City and Shreveport properties to Pennsylvania-based Gaming & Leisure Properties, Inc.
Bally’s is also considering leasing back its Lincoln facility to Gaming and Leisure Properties for $735 million, with related initial annual rent of $58.8 million. The matter is being reviewed by state regulators, Rhode Island Lottery Director Mark Furcolo said in an email Thursday.
Last year, Bally’s sold and leased back its Tiverton casino to Gaming and Leisure Properties as part of a $635 million deal that included the company’s Hard Rock Casino in Biloxi, Mississippi.
Bally’s earnings call also highlighted a full quarter of iGaming in Rhode Island, which launched in March. Since going online, virtual gambling has generated $7.8 million in net gaming revenue, according to data submitted to the Rhode Island Lottery.
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