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Casino issue hits the road
 Message was posted: 06:52 Sep 18th, 2006     
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Don't expect a faux volcano to erupt. There won't be any roller coasters. And you can probably rule out daily pirate battles.

But as Election Day nears, one thing is certain: in true Las Vegas style Harrah's Entertainment will put on a spectacular show.

Harrah's and its partner, the Narragansett Indian Tribe, have rented a 40-foot luxury bus -- the type rock stars travel on -- to crisscross the state. With plush leather couches, a kitchen and a bedroom in the back, they mean business.

They are even sponsoring a WaterFire Providence next month, hoping to sway voters to amend the state Constitution for their casino.

The bills are adding up fast. In the last three months alone, Harrah's has spent more than $5.2 million. That's more than towns such as Foster, Little Compton, Richmond and West Greenwich each spend on municipal government in an entire year.

It's also more than both sides spent in last week's Republican Senate primary.

Those opposed to the casino won't dole out nearly as much. They just kicked their campaign into high gear, airing their first TV spot Monday.

Over the next few weeks, expect to be bombarded with arguments and counter arguments on tax relief, job creation and gambling addictions.

Both sides acknowledge that voters are evenly split and say this question is one of the most important ones to come before the electorate in years.

FOR NARRAGANSETT INDIAN Chief Sachem Matthew Thomas the issue is pretty straightforward: a casino would bring jobs and more income to Rhode Island.

Riding down Route 95 in Warwick the other day, Thomas passed a billboard for Foxwoods Resort Casino.

"Here you've got casinos from Connecticut advertising to take our money in Rhode Island," he said. "We need to stop it."

On the other side is former Republican Gov. Lincoln C. Almond, who said a casino would hurt local businesses and ruin Rhode Islanders' quality of life.

"If somebody wants to gamble in Rhode Island today, they've got no problems," Almond said.

"Do we worry when people go skiing in New Hampshire, Vermont and Maine in the winter? Are we going to build a mountain?" Almond said. "Put this into perspective: cross-border economies are routine in the United States, especially in New England with small states."

The two sides have even chosen strategic names for their campaigns. Harrah's and the tribe call their group Rhode Islanders for Jobs and Tax Relief while those opposed say voters must Save Our State.

There has been very little mention of Harrah's by the casino supporters. Instead they have been pushing the tribe's involvement, making Thomas the front man for the group.

Almond won't debate Thomas, saying he's not the real player.

"If you put Harrah's before the people of Rhode Island, that's one thing," said Almond, who is chairman of Save Our State. "If you put the Narragansett Indians, that's another thing because they're trying to build sympathy for the Narragansett Indians who are a very small partner."

On a recent visit to a senior center, one woman told Thomas that she trusted him and the tribe but not Harrah's. Thomas said the constitutional amendment gives the casino to the tribe and its "chosen partner." For now, that's Harrah's. But Thomas promised: "If they don't live up to their expectations, I'll be the first to tell them to hit the road."

Even if voters in November approve the constitional amendment, a court could still deem it unconstitutional.

Last month, U.S. District Judge William E. Smith said there are "serious constitutional questions" about the proposal.

He left open the possibility of revisiting the issue in the future and said those who question the constitutionality have a "substantial likelihood of success."

THE GAMBLING BUSINESS means high stakes for the state.

Rhode Island took in $255.7 million last year from slot machines at Lincoln Park and Newport Grand. At the same time Connecticut took in $204.5 million from Foxwoods and another $223 million from Mohegan Sun.

Harrah's and the tribe say that a West Warwick casino would add $144 million a year to the state's coffers, dedicated to tax relief. However, lawmakers never agreed to any tax rate on a casino. Thomas acknowledges that the figure comes from two-year-old legislation.

In that proposal, Harrah's offered to pay the state $100 million for the exclusive Rhode Island license and a tax rate starting at 25 percent. By comparison, the state gets nearly 60 percent of revenues from Lincoln Park and Newport Grand.

Almond points out that if a Harrah's casino hurts business at Lincoln or Newport, the state is required under an agreement struck last year to make up the gambling facilities' loss.

"Tell me where you've ever heard of such a thing in the world, never mind the United States, where a government entity is guaranteeing profit?" he said. "That is absolutely unreal."

Almond is convinced the casino would lead to a loss at Lincoln and Newport. With this so-called slippage clause, Almond said, the proposed money from Harrah's is irrelevant because overall the state would lose money.

For Almond, the debate boils down to this: educating voters verses glitz.

Harrah's is spending millions because "they've got a tough sell," he said.

Money does help, but it doesn't always win the race.

When Maine voters considered a casino in November 2003, advocates for and against the measure spent nearly $10 million. Casino supporters outspent the opposition, yet their proposal failed 2 to 1.

However, in Maine the opposition had support from companies with deep pockets such as L.L. Bean and Tom's of Maine. Here, Save Our State has relied on Lincoln Park and Newport Grand for most of its money -- $1 million to date.

In 1994, voters were asked to consider questions allowing a casino in five towns, including one backed by the Narragansett Indians in West Greenwich. All failed. The tribe got 46 percent of the vote on their question.

When asked why Save Our State is taking money from the two slot parlors, Almond said: "I was in bed with the enemy in 1994. . . . If you don't take any money from Lincoln and Newport, you're not going to have any money."

BACK IN 1994, Thomas was the tribe's first councilman. This year, he is optimistic about the vote.

"We believe that this time around it will be different," Thomas said, "because Rhode Islanders have seen all of their money go to Connecticut."

Harrah's says that Rhode Islanders spend $322.5 million a year at Foxwoods and Mohegan Sun and its casino could recapture some of that cash for the Ocean State, according to a University of Massachusetts-Dartmouth study.

The supporters say more than 2,000 Rhode Islanders work at the casinos. In fact, Chief Thomas, says his wife works for the tribe that owns Foxwoods, but not for the casino.

Thomas said a casino would "revitalize a Rhode Island economy that has far too often lost out to Connecticut and Massachusetts."

When speaking about a casino, Thomas likes to point out that his tribe was in Rhode Island long before Roger Williams settled here. Of his opponents, he said: "If they're going to save Rhode Island, they're late. Some of the big rivers are already polluted."

Changing the Constitution is not as significant as some people make it out to be, he adds.

"Let's go back to when the state was incorporated, a few years after we deeded Providence over to Roger Williams. The Constitution of the State of Rhode Island has been changed about 60 or 80 times since then."

(There have been 60 amendments since the Constitution was drafted in 1842.)

HARRAH'S IS PROPOSING a $1-billion project: a 12-story hotel with 500 rooms and 140,000 square feet of gambling space with 3,500 slot machines, 50 poker tables and 100 other table games. It would sit on 86 acres of non-tribal land off Route 95 in a West Warwick industrial park.

Thomas said there would be 3,500 construction jobs, 3,800 full-time jobs and an unspecified number of part-time jobs.

Those jobs would have an average base salary of $28,429, according to Clare Eckert, spokeswoman for the casino drive. She said workers on average could expect $4,989 a year in tips and a $1,200 bonus. Harrah's would also spend on average $12,850 on health care, disability insurance and retirement contributions for each employee.

Harrah's refused to provide a median income to The Journal that would reflect the middle of the salary scale. Theoretically, 10 casino executives being paid $5 million each could dramatically skew the average salary figures Harrah's has presented.

There would be preferential hiring for tribal members. The tribe itself would get 5 percent of gambling revenues before taxes -- about $20 million a year.

Harrah's also promises to give preference to local vendors.

Take the luxury bus that Thomas started touring the state in. Harrah's is paying $12,500 a month to owner Mark DePasquale, of North Kingstown.

However, when a reporter pointed out that the bus is registered in Florida and therefore doesn't have to pay Rhode Island's car tax, Thomas said: "I'm not worried about that."

"All we know is that we went to a Rhode Islander and we got a bus," Thomas said. "Our job is to pay a vendor to provide a bus for us. That's his personal business."





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