Rhode Island Commission Changes May Impact Gambling Proposals

PROVIDENCE, Rhode Island – As reported by the Providence Journal: "When lawmakers voted earlier this month to end the Lottery Commission, they answered the question of what would happen to the high-profile, legislator-dominated body.

"…The dissolution of the board, which controls the state's third-largest revenue source -- an estimated $350.5 million in the current year -- became official late last week, with Governor Carcieri's decision to let the bill pass into law.

"The legislation assigns most of the day-to-day functions of state lottery operations to a lottery director under the auspices of the Department of Administration.

"…Meanwhile, the administration is also reviewing how the changes affect two high-stakes gambling proposals in the state.

"First up is BLB Investors, facing what the company maintains is a Friday deadline for action on legislation that would lock in an 18-year tax rate and guarantee that no other gambling facility would get a better tax-rate deal.

"…Lawyers for the House, governor and other interested parties recently filed briefs with the Supreme Court about whether the latest version of casino legislation meets the constitutional requirement that the state operate all 'lotteries.' The arguments, set for Aug. 15, center on whether the state or Harrah's would effectively operate the planned casino…"