Rhode Island commission OKs more slot machines

Michael Mello

Tuesday, Jan. 28, 2003 | 10:32 a.m.

CRANSTON, R.I. -- Gambling centers in Newport and Lincoln won unanimous approval Monday to nearly double the total number of video lottery terminals in the state, 14 months after first making the requests.

The Lottery Commission's 9-0 vote for Newport Grand Jai Alai and Lincoln Park could bring tens of millions of dollars in additional revenues to a state facing long-term budget woes.

"We need it, and we depend on it," Gov. Don Carcieri said of annual state revenues from the machines that last year was about $149 million. Carcieri, a Republican, and Democratic leaders who control the General Assembly have agreed to push for an increase in the state's percentage of the take from the two businesses.

Even without an increase in its share, the state would gain up to $90 million annually if all the requested video slots are built. That would bring the total number at both facilities to 4,300.

Carcieri projects a potential state deficit next fiscal year of at least $175 million and likely shortfalls for several years after that.

The commission in November delayed for a third time a decision on the requests so Carcieri could negotiate a new deal with legislative leaders on revenue sharing.

Several people told commissioners they opposed allowing more machines, saying it would increase problem gamblers.

"Gambling lures money from those who can least afford it," said Robin Porter, a spokesman for the Kay Coalition Against Casino Gambling. He said the state has 10,000 problem gamblers, a number the group expects to grow.

"You visit on us a modern plague, shame on you and shame on us," he said.

Officials from both Lincoln Park and Newport Grand Jai Alai said they know adding slot machines is their best way to ward off a casino. But with the state likely to take a bigger slice of the revenues from both facilities, they expect to phase in their expansions.

Lincoln, which wants to add 1,300 new machines, expects to have 500 of them operating within six weeks. The rest will be added over the next year or so. Officials said they're committed to adding as many machines as allowed.

Newport will have 200 additional machines operating within three months. The facility can add up to a total of 525 machines. Jai Alai general manager Diane Hurley said her facility will wait to see how much more the state takes from the revenues before deciding how many more to add.

Each facility would have to spend millions of dollars to add the total number of machines requested.

Currently the state takes 52 percent of video lottery terminal profits at Lincoln and 57.5 percent at Newport. Those percentages are already set to increase over the next three years and will go up even more if Carcieri has his way. No casino operator so far has committed to a certain percentage to the state.

Still to be decided are a host of issues, such as the percentage of video-slot revenues kennel operators at Lincoln Park will get. Carcieri said he wants to eliminate that annual payment, estimated to be $14.5 million this year.