Todays's Providence Journal reports that Moodys has downgraded the parent company of Twin River, which follows a downgrade last week by Standard & Poors.  Twin River currently has a forbearance agreement with its main lender, and has missed interest payments to other lenders.  Right now, it looks like bankruptcy is a real possibility.  Since the State of Rhode Island is expecting in access of $250 million in revenue this year, this could be bad news.

     In March, executives at Twin River offered the State $500 million dollars in return for having their tax rate cut in half from the current rate of 61%.  This would have been a great deal for Twin River, but lousy for Rhode Island, since it would have caused us to lose money after about 5 years.  I'm watching this situation closely.  I anticipate Twin River trying to get their rate reduced.  If they do, I'm hoping the State shuts down any talk immediately.  Reducing their rate would cost Rhode Island money, and could possibly result in a legal challenge by Newport Grand.  After all, how would you feel if your competitor had their tax rate reduced, but you're paying twice as much?  One more thing: If you get in over your head financially, can you call up the Department of Taxation and ask them to reduce your tax rate?  I don't think so.