Harrah’s touts economic benefits of casino in R.I.

Wednesday, Dec. 4, 2002 | 11:08 a.m.

SUN STAFF AND WIRE REPORTS

PROVIDENCE, R.I. -- Harrah's Entertainment Inc. of Las Vegas says development of a casino could ultimately generate $50 million annually in new revenues for the state of Rhode Island.

Gary Loveman, who will become the company's chief executive next month, told a House study commission on gambling Tuesday that such a project could house 3,000 slot machines, hotel rooms, restaurants and entertainment.

Harrah's is a partner with the Narragansett Indians, who have been stymied by lawmakers in recent years in trying to win approval for a West Warwick casino.

The House study panel is due to report to the General Assembly in the spring on the effects of expanded gambling in the state. Voters must approve any casino plan.

The state has no casinos but has video lottery terminals at Lincoln Park and Newport Grand Jai Alai.

Loveman's revenue predictions are based on a 25-percent tax on gross gambling revenue at the casino and upgrades at the two existing gambling facilities.

"It is economic development that comes without the price of the proponent seeking benefits or other concessions from you as conditions for development," Loveman said.

The Providence Journal, in the meantime, reported that local legislators told members of the East Greenwich Town Council and School Committee that they oppose any attempts to build a casino in West Warwick.

Council members and legislators alike said a casino would damage local businesses, and force some restaurants to close, the Journal said. Casinos offer free meals and free drinks, against which Main Street can't compete, the critics said, according to the newspaper.

Rep. Robert A. Watson, an East Greenwich Republican, said he was concerned that the loss of local businesses caused by a casino would adversely affect the tax base. The newspaper reported that he said East Greenwich should form a coalition with other communities, specifically West Greenwich and Warwick, to fight the casino.

Democratic Sen. J. Michael Lenihan, of East Greenwich, while opposed to a casino, said that the town needs to be prepared for a worst-case scenario, the Journal reported.

If West Warwick is going to get a huge amount of dollars for the casino, then surrounding communities ought to get compensation, considering the additional policing that may be required, he said. Lenihan said that on an economic basis, all a casino does is take income that could be spent on other pursuits, and ships that money out of state, the newspaper said.

Council President Arthur C. Barton III said that now is the time to stop the casino, before any further plans develop, the Journal said. Barton said he was concerned about the effect a casino would have on property values and about who it attracts, the newspaper said.