The lenders poised to become the new owners of Twin River will take control of the Lincoln slot parlor during perhaps one of the worst losing stretches in the history of the U.S. gambling industry.

The financial troubles affecting some of the marquee names in the gambling business could make it difficult for the lenders to find a long-term owner for Twin River.

Twin River’s current owners, BLB Investors, filed for federal bankruptcy early Tuesday morning and expect to turn over the Lincoln gambling hall to a lenders group led by Merrill Lynch Capital unless some last-minute deal is stuck on a $589-million loan package.

The lenders could own Twin River for a long time.

“It’s been a rough year for casinos,” said Mitchell Etess, president and chief executive officer of the Mohegan Tribal Gaming Authority. “Restructurings are happening in our industry, in Las Vegas and elsewhere.”

Many gambling companies expanded furiously over the last decade and now are seeing their finances melting away, forcing them to cut back building plans and lay off people.

About 72 percent of the U.S. gambling concerns that are either public companies or issue public debt now have a negative outlook or are on review for possible ratings downgrades, according to financial analysts at Moody’s Investors Service.

“The economic recession has seriously hurt gaming revenues in the U.S.,” said Keith Foley, a Moody’s analyst, in a May report. “The greatest risk facing U.S. gaming companies remains the possibility that consumers will further reduce discretionary spending on gaming during the next 12 to 18 months, regardless of economic conditions. This would not bode well for an industry that has invested billions of dollars in new facilities and improvements over the past few years.”

Even the Native American tribes, who often have a leg up in some gambling markets given their sovereign status, are struggling.

“Native American gaming operations are feeling the pain along with the U.S. commercial casino operators,” Moody’s said in an August 2008 ratings report.

The Mohegan Tribal Gaming Authority, which runs Mohegan Sun, and the Mashantucket Pequot tribe, which runs Foxwoods Resort Casino, have seen their debt ratings cut because of the softening economy, which would make it more expensive to borrow the money they might need to buy Twin River. Both have trimmed operations in the last year.

Gambling companies contacted by The Journal were noncommittal about Twin River.

The Mohegan tribe is “constantly evaluating” investment opportunities, Etess said. But it has not been asked to review Twin River’s operations.

“They know where we are,” Etess said of Twin River’s owners.

In an e-mail to The Journal, Foxwoods spokeswoman Lori Potter said the Mashantucket Pequots have not been approached about either owning or managing Twin River and “no such plans are being considered at this time.”

Alan Feldman, a spokesman for Foxwoods’ partner MGM Mirage, said: “We are aware of the situation in Rhode Island and will continue to monitor and analyze the opportunity as more information becomes available.”

Boyd Gaming Corp. was involved in 2002 in a Narragansett Indian casino proposal in Rhode Island, but doesn’t seem eager to jump back into the market. Boyd stopped work in mid-2008 on a $4.8-billion development.

“We’re monitoring things like everybody else,” said Rob Stillwell, a spokesman for Las Vegas-based Boyd Gaming. “But not following the situation there with any interest out of the ordinary.”

A Harrah’s Entertainment spokeswoman told The Journal the company is “absolutely interested” in running Twin River.

But buying, at least in the short term, could be another matter for the company that backed the Narragansett Indians’ failed 2006 West Warwick casino drive. Taken private in 2006, Harrah’s is at risk of defaulting on about $23 billion in debt.

The economic downturn could help Merrill Lynch and its partners in one way, according to analysts, as cost-conscious gamblers opt to stay closer to home.

“Those [competitive] pressures are more acute in challenging economic conditions, as more patrons are likely to opt for a cheaper trip to closer facilities, even if they provide fewer amenities and gaming options,” according to Moody’s.

pgrimald@projo.com