Casino News Source: http://www.boston.com
By M.L. Johnson, Associated Press Writer | June 1, 2006
PROVIDENCE, R.I. --Rhode Island voters will decide whether the Narragansett Indian Tribe can build a casino in West Warwick.
The Senate approved a constitutional amendment Thursday that paves the way for a casino by exempting the Narragansetts and their business partner from a constitutional provision requiring the state to run all lotteries, including casinos. The tribe has long been partnered with Las Vegas-based Harrah's Entertainment.
The Senate approved the amendment 23-13 after a two-hour debate. The House gave its OK last week, and the casino question now goes on the November ballot.
Sen. Joseph Polisena, D-Johnston, urged lawmakers to approve the amendment even though his town has a deal with Donald Trump and his partners to pursue the possibility of building a casino there.
"It's my belief that the people of Johnston have a right to vote," he said.
Casino supporters see the amendment as a way to combat opposition from Gov. Don Carcieri and the Rhode Island Supreme Court. The Republican governor, the proposal's most powerful and outspoken critic, cannot veto the amendment, as he has with other casino gambling bills.
The state Supreme Court would no longer have grounds for ruling -- as it did twice before -- that state authorities would not have enough control over casino operations, supporters say.
A casino would provide the state with millions of dollars in gaming taxes and thousands of jobs, according to proponents. Harrah's officials have said they will invest up to $1 billion under their latest proposal and pay a $100 million licensing fee to the state.
They said also said the state will receive at least $144 million in gaming taxes after the casino's third year of operation.
Sen. Dominick Ruggerio, D-Providence, said Connecticut's two casinos have provided economic growth in the eastern part of that state.
"I see restaurants along the route (to the casino). I see a shopping center going up. I see activity in Connecticut," he said.
But critics worry a casino could steal customers from entertainment venues and restaurants in downtown Providence. Sen. Leonidas Raptakis, D-Coventry, said the casino could expand to compete with the Rhode Island Convention Center and other facilities.
"What if they build a sports arena like they did at Mohegan Sun?" he said.
They also say the income from taxes is not guaranteed.
The original amendment introduced by Rep. Timothy Williamson, D-West Warwick, set a tax of 25 percent to 40 percent on gaming income generated by the proposed casino. But the House finance committee cut that language, which means legislators must set a tax rate after voting on the amendment.
Sen. J. Michael Lenihan, D-East Greenwich, said the Narragansetts are guaranteed a 5 percent cut of the casino's revenues.
"The state, however, has no such deal," Lenihan said.
Lawmakers voted 16-17 against an amendment to the legislation that would have required the Narragansetts to partner with whatever company won a state bid.
Rhode Island gets about 60 percent of gaming income from the state's two slot parlors, the Newport Grand and Lincoln Park. State authorities previously agreed to reimburse both slot parlors if their revenue declines from competition with a casino.
Carcieri said that's one reason he will campaign against the casino amendment.
"Nobody has analyzed how a Harrah's casino would impact Lincoln Park and Newport Grand, or how much the state will have to pay those two facilities to make up for the revenues they will undoubtedly lose," he said in a statement. "Voting to approve this amendment without that critical information was breathtakingly irresponsible, and could put the state at great financial risk."
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