IGT and Twin River Worldwide Holdings, Inc. unveiled a proposal it hopes to form to work with the State to maximize economic development and keep IGT's 1,100 jobs, increase investment in Rhode Island through new construction at Twin River Casino Hotel in Lincoln, ensure that the gaming floor and its slot machines continue to drive over $300 million a year to the State, minimize the risk of systems and technology conversions and overall, enhance Rhode Island's gaming competitiveness with Massachusetts and Connecticut. The net effect of these transactions would be the creation of a robust, three-way partnership among the State, IGT and Twin River that would benefit all Rhode Islanders. The proposed vehicles to achieve these results include the following: New Joint Venture between IGT and TRWH. Robert K. Vincent, chairman of IGT Global Services and Marc Crisafulli, executive vice president of TRWH and president of the Rhode Island casinos, jointly announced the creation of a new company that will focus on creating and maintaining a competitive gaming machine offering. The new joint venture will be established effective January 1, 2022. The companies will make various investments that will result in IGT having a controlling 60% stake in the new company and Twin River owning the remaining 40%. The joint venture will be a licensed VLT provider and supply the entirety of the gaming machines to the Lottery. IGT-manufactured machines and multiple other manufacturers will supply the floor that will continue to be managed by efficiency rating system. IGT's initial 40% share will increase or decrease based on performance relative to its competitors. A minimum annual replacement cycle will be set at 6% with flexibility to replace up to 8% in any year. At least 5% of the VLTs will be the highly popular premium machines to keep the gaming offering on par with regional competitors. As part of the process to create the joint venture, TRWH will seek licensing as a technology provider and will acquire approximately 23% of the slot floor from existing third party vendors. That is expected to commence on July 1, 2020.

The new company will be governed by a five member board of directors with Jay Gendron, Chief Operating Officer of IGT to serve as its chairman and Mr. Crisafulli to serve as Vice Chairman. Remaining members will be jointly selected. The Rhode Island Division of Lotteries will continue to maintain oversight and regulation of all gaming. All aspects of the lottery and gaming programs will continue to be state-operated. As part of this comprehensive proposal, Twin River will commence an 18-month renovation and expansion of its flagship property, Twin River Casino Hotel, subject to receiving all necessary state and local approvals. Highlights of the expansion include a 40,000 square foot addition to the first floor gaming space, the addition of a 14,000 square foot spa in the hotel which will now have a dedicated entrance, greater separation between the smoking and non-smoking areas of the gaming floor and removal of most of the slot machines on the second floor to allow for a new entertainment concept to be announced at a later date. The combined improvement and expansion in Lincoln along with additional technology investments will exceed $100 million.