BLB Investors moves to block gambling competition

PROVIDENCE, R.I. -- The company moving to buy Lincoln Park has taken steps to protect the gambling facility from competition. BLB Investors submitted draft legislation to the governor seeking assurances that if it were to buy Lincoln Park, no other gambling facility in Rhode Island would be granted a more favorable tax structure. BLB also offered in the proposal millions of dollars to the Narragansett Indian tribe and preferable treatment to its members wanting jobs at the park, according to The Providence Journal. Some lawmakers said the so-called parity clause in BLB's draft legislation is an attempt to kill a casino proposal by the Narragansetts. "This is smoke and mirrors by the Carcieri administration to poison the minds of potential voters on the casino referendum," said state Rep. Timothy Williamson, sponsor of the bill allowing a casino in his hometown of West Warwick. The Narragansetts have partnered with Harrah's Entertainment to build a casino in West Warwick. They've unsuccessfully sought permission for the project for several years. Carcieri's spokesman, Jeff Neal, said the governor has "made it clear" that the Narragansetts are free to pursue a casino whether or not they accept any revenue from an expansion at Lincoln Park. He said BLB's draft legislation includes several conditions Carcieri said were necessary for him to back the sale, but it still needs significant changes before the governor would endorse it. On Monday, BLB _ a consortium of hotel and gambling companies _ offered to purchase Lincoln Park from its British parent company, Wembley PLC, for $339 million cash. As part of the deal it is seeking an 18-year contract spelling out its tax rate and state approval for 1,750 additional video-slot machines at Lincoln Park. In exchange, the company has pledged to spend $125 million on renovations and expansion of the track. The parity clause in the draft legislation says that if any casino gets a lower tax rate than Lincoln Park's, the park's rate would have to be lowered as well. Currently, the state gets about 60 percent of revenues at Lincoln Park and Newport Grand. This fiscal year, the slots are expected to generate about $255 million for the state. The casino Harrah's is proposing with the Narragansetts would pay a much lower tax rate. Last year, the Las Vegas company offered to pay on a sliding scale that ranged from 25 percent to 35 percent. The parity clause would "guarantee there would be no casino," said Brown University political scientist Darrell West. West said lawmakers would not want to bring in a casino if it meant lowering the state's take from Lincoln Park. "So nobody in state government can allow that to happen because so much of the state budget now is dependent on gambling revenue," West said. Jan Jones, a senior vice president at Harrah's, said she has no problem with the parity clause as long as BLB plans to make the same capital investment her company is pledging _ at least $600 million. Copyright 2005 Associated Press. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.