State to step up oversight of indicted gambling hall

Michael Mello

Wednesday, Sept. 24, 2003 | 9:40 a.m.

PROVIDENCE, R.I. -- The state will increase daily oversight of its largest gambling operation, following a federal indictment of officials connected to Lincoln Park, Gov. Don Carcieri said Tuesday.

Carcieri said he'd like to have someone at the park to report back to the state on daily operations. It's an idea the park's London-based owner, Wembley PLC, offered during a nearly two-hour meeting with the governor, company chairman Claes Hultman said.

"We are interested in anything that can create further comfort (in the) operating integrity of the track," Hultman said. The company will also give the state access to the park's audited financial records.

A 22-count indictment handed up earlier this month names Daniel Bucci, the park's chief executive officer, and Nigel Potter, who was a top executive with Wembley PLC. The park itself is named as a corporate defendant.

Prosecutors claim the company officials conspired to bribe the law firm of former House Speaker John Harwood to obtain more lottery terminals at the dog track and gambling facility.

The governor has said he will not discuss a long-term contract for video lottery operations at the park until the indictment is resolved.

"Our concern is the future of the venue, right now, it is in limbo. I want to see that resolved," Carcieri said.

He would not discuss the options raised by the company.

"We discussed a number of things they are looking at," Carcieri said. "I encouraged them to pursue options, sooner rather than later. They are going to do that."

Hultman said the company has no plans to sell the park. The company makes about 90 percent of its profits from its operations in Rhode Island and Colorado, where a subsidiary owns four race tracks.

Hultman said that despite the indictment, it remains Wembley's "fundamental desire" to add 725 machines, which would bring the park's total to 3,000.

The company's board must still consider whether to move ahead with the project, which would require more than $50 million in construction. Hultman said the board will weigh Carcieri's position to delay consideration of a long-term contract.

If the project goes forward, the company won't wait for the federal charges to be resolved, Hultman said.

"We would like to expand the facility as much as possible ... we stand by our earlier statement, no U.S. laws have been broken," he said.

An expansion could generate millions of dollars for the state, which shares in the video lottery revenues. The park employs 890 people and last year contributed $127 million to the state.

Carcieri said he didn't get the impression the company "is ready to put a shovel in the ground" to expand the park. He acknowledged that if the park doesn't expand, it would hurt the state financially because budget planners have been counting on additional video lottery revenues.

"There is an impact on us, that's part of why I indicated there needs to be a resolution of the future of that (business)," he said.

The governor will meet again with Wembley or park officials in a few weeks to develop a plan allowing the state to step up its oversight.

The park is already regulated by the state Lottery Commission and the Department of Business Regulation.

Greg Pare, spokesman for Senate President William Irons, D-East Providence, said Irons is puzzled by the governor's call for further regulating the park, and wonders what agency would be responsible.

"President Irons feels confident that the regulation that is currently in place is thorough and adequate," Pare said.

The governor said the plan to increase the state's oversight of the park would not need lawmakers' approval.