Revised Casino Bill Keeps Gambling Hopes Alive

PROVIDENCE -- The Narragansett Indians on Wednesday said they would attempt to ask voters again to approve plans to build a resort-style casino in West Warwick. Members of the tribe, along with legislative sponsors and a representative from Harrah's Entertainment, introduced a bill that would put a casino referendum before the voters at a special election in November. The tribe has tried for more than a decade to get approval for a casino. A crucial difference this time around is that the casino would be operated by the state, which sponsors of the legislation said would resolve the constitutional objections that derailed the referendum last year. "I believe we have legislation that will meet every legislative and judicial test," said Chief Sachem Matthew Thomas, of the tribe. Under the plan, the tribe and partner Harrah's Entertainment would contract with the state to manage the casino. Backers said the casino would pay a $100 million license fee to the state. The tribe projected that the casino would bring the state $127 million in revenue in its first year of operation. The bill's legislative sponsors, Rep. Timothy Williamson, D-West Warwick, and Sen. Stephen Alves, D-West Warwick, propose that the state's share of revenues be dedicated completely to property tax relief. The legislators said the casino, occupying some 65 acres in the West Warwick Industrial Park, would mean a minimum $500 million capital investment in the state. It would also create 3,200 jobs, backers said. After operating expenses were paid, the state and local government would get 80 percent of the casino's net proceeds. It was not immediately clear what the state's take would be as a percentage of bets placed at such a casino. Currently, the state gets 60 cents of each dollar wagered on video lottery terminals at Lincoln Park and Newport Grand. "We are currently reviewing their proposal, but I would be very surprised if Harrah's is offering anything close to the deal that the state receives from Lincoln and Newport," said Jeff Neal, spokesman for Gov. Don Carcieri. The governor is an ardent casino opponent, and Neal said Carcieri remains against "a new and dramatically different form of gambling, which a casino would be." Neal said the governor believes a casino would undercut revenues from Lincoln and Newport, would exacerbate social ills such as compulsive gambling, and would hurt existing restaurants and entertainment venues. The tribe said it expected to get roughly $15 million to $20 million annually from the casino's net proceeds during the first years of its operation. Guy Dufault, a spokesman and lobbyist for the tribe, said that number could increase as the casino's business grows. The proposal calls for about 3,000 slot machines or other games at the site, about the number Lincoln Park has now. David Satz, vice president of government relations for Harrah's, said the casino would look to expand over time, and said the specific types and number of games offered would be determined by the state Lottery Commission. Last year, the General Assembly agreed to put on the ballot a referendum question asking voters if the Narragansett Indians and Harrah's Entertainment could open a resort-style casino in West Warwick. Under the state constitution, voters must approve any expansion of gambling in Rhode Island. But the question was pulled after the state Supreme Court, responding to a request for an advisory opinion from the governor, ruled it was unconstitutional because it asks residents to approve a facility forbidden under state law. The Rhode Island Constitution, the justices said, prohibits all "lotteries" except those operated by the state or already in existence. The proposed casino, they said, would represent one of those prohibited lotteries. Further, it would be controlled by Harrah's, not the state, they said. The proposal released Wednesday would work within those constitutional boundaries, the tribe said. The Narragansett have been seeking to build a casino for more than a dozen years, saying the tribe is sorely in need of economic development opportunities. They are the only tribe in the nation that needs voter approval before building such a facility on their tribal lands. The two Indian-run casinos in eastern Connecticut have been extremely successful. Copyright 2005 by turnto10.com. The Associated Press contributed to this report. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.