2008 Woodie Awards
Casting the vote on R.I. casino bid
Betsy Rouleau
Issue date: 9/21/06 Section: Commentary
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The ads are everywhere: Rhode Island residents and Providence College students can see the billboards wherever they turn. Narragansett Indian Tribe members plead on T.V. for support from citizens, while casino activists promise that the new casino will bring jobs and tax relief to the state. On Nov. 7, Rhode Islanders will have the opportunity to voice their opinion concerning "Question 1"-the casino referendum. The question asks citizens if the Rhode Island constitution should be altered to allow Harrah's Entertainment, a company based in Las Vegas, to build a casino in West Warwick. Harrah's Entertainment is partnering with the Narragansett Indian Tribe, but the tribe would receive five percent of the casino's revenue-an initial payment of $300,000-and yearly contributions of about $75,000. Tribe spokesperson John Armato did not provide a statement when contacted last week.
Harrah's Entertainment spent $5.2 million during June, July, and August on advertising in hopes of encouraging Rhode Island residents to vote yes in November. Advocates of the casino promise great things: A boost in the state's economy, increased tourism, the provision of new and meaningful employment, and tax relief. However, a deeper examination of the issues arouses many concerns.
The argument relating to the Rhode Island economy and the benefits of a casino are straightforward: The increased revenue from a casino will benefit the state. Some say that the casinos will utilize local businesses for food and supplies.
Harrah's has said that the state would receive $144 million to be used for tax relief. However, the promised $144 million is not a constitutional guarantee; rather, it is an amount projected by Harrah, and the state legislature would decide where the profits would go. Moreover, the addition of a third gaming facility to Rhode Island would actually have a detrimental effect on all involved parties. Lincoln Park and Newport Grand Jai-Lai currently pay the state a 60-percent tax. Harrah's Entertainment is offering Rhode Island only 25 to 40 percent of their revenue, and small-scale casinos or "gaming venues" such as Newport Grand and Lincoln Park will not be able to compete with a billion dollar initiative such as Harrah's. Because a destination casino would overwhelm the smaller facilities, the state would not receive the yearly $215 million it currently accepts from the existing venues. Finally, the belief that Harrah's business would utilize local suppliers for food, furniture, linens, and equipment is unfounded. There is no guarantee that Harrah's, an out-of-state corporation, will necessarily invest in local businesses.
Harrah's Entertainment spent $5.2 million during June, July, and August on advertising in hopes of encouraging Rhode Island residents to vote yes in November. Advocates of the casino promise great things: A boost in the state's economy, increased tourism, the provision of new and meaningful employment, and tax relief. However, a deeper examination of the issues arouses many concerns.
The argument relating to the Rhode Island economy and the benefits of a casino are straightforward: The increased revenue from a casino will benefit the state. Some say that the casinos will utilize local businesses for food and supplies.
Harrah's has said that the state would receive $144 million to be used for tax relief. However, the promised $144 million is not a constitutional guarantee; rather, it is an amount projected by Harrah, and the state legislature would decide where the profits would go. Moreover, the addition of a third gaming facility to Rhode Island would actually have a detrimental effect on all involved parties. Lincoln Park and Newport Grand Jai-Lai currently pay the state a 60-percent tax. Harrah's Entertainment is offering Rhode Island only 25 to 40 percent of their revenue, and small-scale casinos or "gaming venues" such as Newport Grand and Lincoln Park will not be able to compete with a billion dollar initiative such as Harrah's. Because a destination casino would overwhelm the smaller facilities, the state would not receive the yearly $215 million it currently accepts from the existing venues. Finally, the belief that Harrah's business would utilize local suppliers for food, furniture, linens, and equipment is unfounded. There is no guarantee that Harrah's, an out-of-state corporation, will necessarily invest in local businesses.