Narragansett deal with ex-casino backer hits snag

Tuesday, April 4, 2000 | 10:41 a.m.

Capital Gaming Development Inc. of Phoenix is threatening legal action if the tribe and its new backer, Boyd Gaming Corp. of Las Vegas, fail to pay them an estimated $10 million.

Guy Dufault, a spokesman for the tribe, accused Capital Gaming of posturing.

"They are trying to leverage up a higher settlement right before the hearings, " Dufault told The Providence Journal on Monday.

The House Finance Committee is scheduled to hear testimony Thursday on the proposed $250 million casino in West Warwick.

Capital and the Narragansetts announced an agreement in January to end their relationship after years of the tribe failing to win support for a gambling hall.

The Narragansetts moved their focus from tribal lands in Charlestown to other proposed sites in West Greenwich and Providence, until presenting their latest plan for West Warwick.

The Narragansett plan must be approved by lawmakers and voters statewide. Gov. Lincoln Almond is among several top government officials who have vowed to block any casino.

Boyd spokesman Rob Stillwell was confident the problem with Capital will be resolved.

"We did not go into this blind," Stilwell said. "We understood all of the moving parts with regard to this situation and we are confident it will be resolved."

Boyd is a 25-year-old company that claims $1 billion in annual revenues and operates 11 gambling halls in five states, including the Stardust Resort & Casino in Las Vegas.

The Narragansetts have proposed a two-story casino with 3,000 slot machines and 150 gambling tables.