Congressman entangled in Harrah’s controversy

Michael Mello

Tuesday, March 26, 2002 | 9:47 a.m.

PROVIDENCE, R.I. -- The stakes keep rising in the fight over expanded gambling, which has cost one state employee his job, infected two political races and threatens a town's casino dreams.

The House Finance Committee today will consider creating a commission to study the issue, which could call off all bets on a final resolution until next year.

On Monday Republican candidate for Congress Christy Ferguson questioned Democratic Rep. Patrick Kennedy's ties to Las Vegas gambling interests and called on him to cancel a planned April fund-raising event there.

Ferguson is running for Kennedy's 1st Congressional District seat. She's trying to tie him to the same controversy that led Secretary of State Ed Inman to fire Chief of Staff Joe DeLorenzo last week.

DeLorenzo met privately with the Narragansett Indians last year when they were looking for a financial backer for their proposed West Warwick casino. He later arranged another meeting involving Harrah's Entertainment.

The tribe ultimately went with Boyd Gaming instead, but recently said DeLorenzo suggested they made the wrong choice.

DeLorenzo denied the tribe's allegation and Inman initially backed him, before firing him days later. Inman claimed he initially didn't know DeLorenzo had met twice with the tribe.

Inman denied the firing was related to his own election bid but acknowledged concern about the effect the negative publicity would have on his office. His opponent in the Democratic primary, Matt Brown, first called for DeLorenzo's resignation.

The tribe is seeking General Assembly approval to place its casino proposal on a statewide ballot. Inman's office oversees elections.

"We've got a long way to go before public confidence is restored in that office," Brown said after the firing.

Ferguson believes Kennedy improperly offered Harrah's advice on hiring local lobbyists, which Kennedy denies.

Former Las Vegas Mayor Jan Jones, now senior vice president for communications at Harrah's Entertainment Inc. of Las Vegas, asked Kennedy's opinion on the Providence firm Holland & Knight. Harrah's subsequently hired two of the firm's lawyers as lobbyists. Kennedy says he doesn't see that as offering advice.

Ferguson, who said she will not accept contributions from gambling interests, wants Kennedy to cancel the Las Vegas fund-raising event set up by Jones and return other contributions from gambling interests.

Kennedy's campaign received $18,500 from gambling interests through the first six months of last year, according to The Center for Responsive Politics. That total ranked ninth overall among all candidates for Congress, according to the Washington, D.C.-based center.

Kennedy campaign manager Kim Devlin said he has no intention of canceling the fund-raising event.

"These are baseless attacks from a campaign in need of a jump start," she said.

Jones insists Harrah's was not involved in planning the $500-a-person event. She said she has set up at least five such gatherings for Kennedy in recent years.

"We've been friends for years," she said. "He's been open on some gaming issues ... He's always been fair."

Brown University political science professor Darrell West said it should be no surprise the gambling issue has become politicized.

"Casinos are a hot-button issue, the public is sharply divided," he said.

West said it is fair for Ferguson to raise questions about gambling-related contributions to Kennedy.

"It's the job of an opponent to turn that (issue) into a liability," he said.

Lawmakers' consideration of a study commission is also appropriate, despite the tribe's charges of political shenanigans, he said.

"Gambling revenues are already so much a part of the state's budget, lawmakers have to be careful not to harm existing revenues," West said. "There are legitimate issues for further study."

The cards appear stacked against the Narragansetts this year, since a majority of the finance panel backs the idea of a commission.

Chief Sachem Matthew Thomas will argue further study isn't needed, given the finance panel's consideration and subsequent denial two years ago of the tribe's request to get on a statewide ballot.

"We hope we can change some minds," he said.

Neither do West Warwick officials want to wait any longer.

The town is preparing to give Boyd Gaming and the Narragansetts exclusive rights to a casino.

"We're the highest taxed community in the state, any delay in getting us some tax relief hurts," Town Manager Wolfgang Bauer said.