Governor vetoes bill on casino referendum

Elizabeth Zuckerman

Friday, July 2, 2004 | 9 a.m.

PROVIDENCE, R.I. -- Calling a proposed casino a threat to the quality of life in the state, Gov. Don Carcieri on Thursday delivered his promised veto of a bill that would put before the voters a referendum on creating a resort-style casino.

"It's like a bunch of leeches all over us and all over our state, pulling money out, not creating value," said the governor, who said he considers the proposed West Warwick casino a unique danger to the state.

Before signing the veto, Carcieri said the deal that has been negotiated with Las Vegas-based Harrah's Entertainment is a poor one, and said he believes there are constitutional problems with the legislation authorizing the voter referendum.

Legislative leaders said Thursday that they believe they have enough votes to override the veto. Senate President Joseph Montalbano said the bill has 23 votes in his chamber, and needs just 21.

State Rep. Timothy Williamson, a leading supporter of the casino plan, said he believes bill proponents also have the votes for an override in the House.

Under the Rhode Island Constitution, voters must approve any casino to be built in the state.

Williamson said the voters deserve a chance to weigh in on the proposal. He rejected the governor's claim that legislators who do not support the casino, but want voters to decide the issue, are shirking their responsibilities.

"(The governor) respects their intelligence enough to vote for him, enough to vote on separation of powers, but not enough to vote for this. That's illogical," Williamson, D-West Warwick, said.

Joined by the mayors of Cranston, Newport and Warwick, as well as U.S. Sen. Lincoln Chafee and former Gov. J. Joseph Garrahy, Carcieri said he believes a casino would undermine local businesses, and would provide less revenue to the state than existing gambling operations in Newport and Lincoln, from which he said it will take business.

Harrah's, in partnership with the Narragansett Indian Tribe, has proposed a $600 million casino that would open by 2007, generating more than 3,200 direct jobs.

Harrah's would own the casino. It has agreed to pay a $100 million licensing fee and a tax rate under a 10-year contract of between 25 percent and 40 percent, depending on gross gambling revenue. Lincoln Park and Newport Grand pay the state 60 percent of their video lottery terminal revenue.

Harrah's says the state would collect $113 million in additional gambling revenue in the casino's first year of operation.

Carcieri called the plan "a sweetheart deal for an out-of-state gambling colossus."

Mayor Stephen Laffey, of Cranston, said the promises of wealth from casino gambling have not panned out in other states.

Laffey said when he lived in Tennessee, he was close to the casinos of Tunica, Miss., which he said were built with the promise they would fund education and improve quality of life in the desperately poor area.

"You can go down there now and see the bankrupt promises of people with no running water, no education, no hope," he said.

The governor also attacked the constitutionality of the casino bill, saying it infringes on the right of the courts to review the measure, and by allowing a private group to run a gambling operation. The governor said the constitution restricts that function to the state lottery commission.

"I think he took a few liberties in how he quoted the constitution," Williamson said, adding that the relevant section refers to lotteries.

The veto signing drew about 100 people including a large group of casino supporters who stood at the rear of the State Room holding signs.

Chief Sachem Matthew Thomas, of the Narragansett tribe, said given the tribe's long history in the state, he was impatient with arguments that a casino would destroy the state's natural beauty.

"Don't tell us about the beauty of it. We've already seen it changed," he said.

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