Rhode Island Casino Vote Approved

PROVIDENCE, Rhode Island – As reported by the Providence Journal: "Committees in the House and Senate yesterday approved slightly different bills to allow a statewide referendum in November on the proposed casino that Harrah's Entertainment is seeking to build, with a promised cut to the Narragansett Indians.

"Unseen until moments before last night's hearing, the 48-page 'Rhode Island Gaming Control and Revenue Act' cleared the Senate Committee on Constitutional and Gaming Issues on a 5-2 vote.

"A short time later, it cleared the House Finance Committee on a 13-4 vote. But not all of the yea votes came from supporters of the casino.

"…Looking more wary than happy, the Narragansetts' chief sachem, Matthew Thomas, said: 'I'll be deliriously happy when we put the shovel in the ground.'

"…The vote also elicited dire predictions from spokesmen for Lincoln Park and Newport Grand, whose state-sponsored video-gambling operations are expected to produce a projected $216 million for the state this year.

"…Voters would be asked: 'Shall there be a casino in the town of West Warwick operated by an affiliate of Harrah's Entertainment in association with the Narragansett Indian Tribe?'

"If voters said yes, Harrah's would have dibs on an exclusive casino license. In return, it would be required to pay a $100-million license fee, an additional hotel tax of $1 per occupied room per night, and a new tiered tax ranging from 25 percent on its first $400 million in gambling revenues, up to 40 percent on earnings of $1 billion and up. Harrah's projected net gains for the state of between $81 million and $114 million through 2010, but that apparently included payroll and sales taxes.

"The only obvious difference between the two bills: whether the casino would be regulated by the Lottery Commission or a lottery subcommittee…"