Panel says R.I. voters should decide on casino

Michael Mello

Wednesday, April 2, 2003 | 9:49 a.m.

PROVIDENCE, R.I. -- Voters this year should decide whether Rhode Island will welcome a casino, but without knowing a specific location or developer, according to a House commission that spent eight months investigating expanded gambling.

A special statewide referendum would be held in November, said the seven-member panel in a thick report released Tuesday. Voters would be asked whether they support a single resort-style casino in the state.

The panel also recommends creation of a gambling control board with members appointed by the governor to handle licensing, regulation and enforcement issues. Once the gambling board is established, voters in the host community would have a final vote on a specific project.

The proposal would again at least temporarily delay the Narragansett Indian Tribe's efforts to develop a casino in West Warwick. The tribe in recent years has unsuccessfully pressed lawmakers to allow voters to consider a referendum question on its casino plans. Its current partner is Harrah's Entertainment Inc. of Las Vegas.

The tribe's chief sachem, Matthew Thomas, attended a hearing at which the commission unanimously approved the report and said afterward voters statewide should get to vote on a specific project.

"We don't mind other communities bringing proposals forward, but give voters something they can be educated on, after they've seen a specific proposal," Thomas said.

West Warwick Democratic state Rep. Tim Williamson, a vocal supporter of the Narragansetts' proposal, called the report "a work in progress." He likes the idea of asking voters to approve casino gambling but will continue to push for a ballot question specifically mentioning West Warwick as the location.

House Finance Chairman Paul Sherlock, D-Warwick, who served as co-chairman of the commission, said the recommendation positions Rhode Island to be able to watch how neighboring states, such as Massachusetts, will handle expanded gambling.

On Monday, Massachusetts Gov. Mitt Romney's administration proposed the introduction of video slot machines in the state. Romney had sought to collect "blocking payments" from gambling operators in neighboring states to keep casinos and slots out of Massachusetts but they rejected his plan.

Sherlock said he also wants to set up a deliberate process to ensure Rhode Island gets the best deal possible, if voters want a casino, he said.

"If the people turn it down then it's gone, forget it, over," Sherlock said of the proposed November referendum. "If they want it, they'll have good assurance it will be handled based on good, solid, contemporary data and with independent oversight."

Sherlock says another reason for a general statewide vote is that, if the idea is welcomed, casino developers will be willing to spend money for a host of studies the panel recommends on everything from economic benefits to the state to social costs. He estimated the cost of such studies at up to $1 million.

The panel, which held public hearings around the state, says it concurs with studies that suggest a new casino, in a market not already saturated, can thrive economically. But the panel said it has seen little study specific to Rhode Island.

The panel also said a Rhode Island casino would be primarily supported by residents from out of state.

One commission member, Rep. Paul Crowley, D-Newport, does not support the report's referendum recommendation. He said current law requires voters statewide to approve a specific location.

"We should keep it the way we have it," he said.

Newport Grand Jai Alai, one of two gambling halls in the state, also raised a concern about the panel's proposed tax rate for a casino.

The report says the state should get 40 percent of gross receipts from gambling at a casino, with 7.5 percent of that going to the host community.

Gov. Don Carcieri has proposed increasing the state's share of revenues from video lottery terminals at the Newport business and Lincoln Park to 65.7 percent. Currently the state takes 52 percent of video lottery terminal profits at Lincoln and 57.5 percent at Newport.

The Republican governor opposes a casino and said in a statement that it "is not the answer to the state's long-term economic development needs."

The five members on the gaming control board recommended by the House commission would all be appointed by the governor to three-year terms, with consent of the Senate. One member would have at least five years of investigative law enforcement experience. Another must be an attorney with five years experience in regulatory law.

Other members would have experience as a certified public accountant, management and expertise in the area of problem gambling. All must be Rhode Island residents.