Rhode Islanders will vote Nov. 7 on a constitutional amendment granting Las Vegas-based Harrah's Entertainment exclusive, no-bid contract rights to construct the Narragansett Indian casino in West Warwick. Supporters and opponents of Ballot Question 1 have spent millions of dollars convincing voters and legislators of the effects a $1 billion "Foxwoods-style" casino might have on Rhode Island.
The state Special House Commission to Study Gaming released a report in April 2003 recommending Rhode Islanders vote on the prospect of a single-destination casino resort. On June 1, the General Assembly passed House Resolution 7935, which placed Question 1 on the ballot.
Proponents of the Narragansett Indian casino claim it will add 3,800 permanent jobs in the state along with thousands of construction jobs. Revenue from the casino will go toward property tax relief. Opponents, meanwhile, are skeptical of revenue projections by Harrah's and view the company's bid for the casino as an initiative undertaken behind closed doors.
Harrah's has agreed to pay a tax on gaming revenues of between 25 and 40 percent. Existing Rhode Island casinos pay a 60-percent gaming tax.
A University poll released Sept. 18 showed 55 percent of voters in Rhode Island are opposed to Question 1, with 36 percent in favor of the casino and 9 percent undecided.
To date, Harrah's has donated over $5.2 million to Rhode Islanders for Jobs and Tax Relief, the campaign in support of Question 1. The campaign's funding comes entirely from Harrah's - the campaign's Web site does not contain any links or places to make donations.
Save Our State, the group opposed to Question 1, has received contributions from existing Rhode Island video and racetrack gambling casinos, local hotels and businesses. According to campaign disclosure reports from August, Save Our State has less than $850,000 on hand and has spent over $100,000 in advertising. Newport Grand and Lincoln Park casinos each donated $500,000 to Save Our State last month.
A University of Massachusetts-Dartmouth poll found that over 87 percent of those who currently gamble at Lincoln Park or Newport Grand would be "more likely to go to a 'Foxwoods-style' casino in West Warwick." According to Rhode Islanders for Jobs and Tax Relief spokeswoman Clare Eckert, however, the economic impact of the Narragansett Indian casino on existing casinos would be "minimal."
"Our constitution should not be put for sale by Harrah's or any other business," said Timothy Costa, executive director of Save Our State. "The General Assembly allowed Harrah's to write the constitutional amendment giving Harrah's an exclusive, no-bid monopoly in the state. They have not guaranteed anything to the taxpayers." Costa was paid $40,000 last month for providing "consulting" services to the Save Our State campaign.
Though no local businesses have given money to Rhode Islanders for Jobs and Tax Relief, many support Question 1 because of potential business the casino might bring to the state. According to Eckert, plans for the casino include multimedia advertising for Rhode Island businesses.
One local business owner, Gian Marracco, appears in television commercials supporting Question 1. Marracco runs Mediterraneo Caffe, a restaurant located at 134 Atwells Ave.
According to the August campaign disclosure report, Rhode Islanders for Jobs and Tax Relief spent over $450 that month at Marracco's restaurant.
Long before the two campaigns took to the airwaves, political action committees and lobbyists representing both sides courted Rhode Island lawmakers.
Attorneys from Pannone, Lopes & Devereaux, a Providence law firm representing Harrah's interests in Rhode Island, have donated thousands of dollars in recent years to members of the Special House Commission to Study Gaming and sponsors of HR 7935.
One August campaign expenditure for Rhode Islanders for Jobs and Tax Relief included a $269 dinner at Costantino's Ristorante, an eatery located at 265 Atwells Ave., that is operated by the family of State Rep. Steven Costantino, D-Dist. 8, who sat on the Special House Commission to Study Gaming and chairs the House Finance Committee.
Costantino and other members of the gaming commission also received campaign funds from Holland & Knight, a Florida-based law firm formerly in charge of representing Harrah's interests in Rhode Island. After Holland & Knight closed its Providence office, a group of the firm's lawyers formed Pannone, Lopes & Devereaux.
State Rep. Paul Moura, D-Dist. 2, received $400 from Pannone, Lopes & Devereaux attorneys days before he sponsored HR 7935 along with an additional $200 from one attorney a week later. Since 2004, individuals and PACs representing the Narragansett Indian casino's interests have donated a total of $1,200 to Moura's campaign. In that same time, Moura received over $500 from the Newport Grand PAC.
Terence Fracassa, Harrah's lobbyist and attorney at Pannone, Lopes & Devereaux, told the Warwick Beacon in January that Harrah's expected State Sen. Stephen Alves, D-Dist. 32, and State Rep. Timothy Williamson, D-Dist. 25, to support the General Assembly resolution putting the casino question on the ballot.
Prior to this announcement, Fracassa donated $1,000 to Williamson and $1,500 to Alves. Williamson was the chief sponsor of HR 7935 and introduced the legislation on March 22. According to Williamson, "the (money) did not see (its) way to me until after I made public statements in support of (the casino)."
"There is no connection and no link with my clients and these contributions," Fracassa told The Herald when asked about these and other donations made to members of the gaming commission. Fracassa said he brought Harrah's Entertainment and the Narragansett Indian tribe together three years ago, citing a "common interest."
Williamson and Alves represent portions of West Warwick but not the proposed site of the casino. State Rep. Norman Landroche, D-Dist. 27, and state Sen. Leonidas Raptakis, D-Dist. 33, represent the proposed location, but both oppose Harrah's campaign for a no-bid contract. In addition, West Warwick Town Councilman Peter Calci Jr., whose ward includes the proposed site, also opposes the casino.
According to Costa, Save Our State did not lobby the General Assembly in opposition of HR 7935 - in fact, the group was incorporated after the resolution's passage.
But organizations and PACs opposed to Question 1 have given thousands of dollars in donations to members of the gaming commission. The Newport Grand PAC has given money to all but one member of the gaming commission, and the Rhode Island Hospitality and Tourism PAC, whose link appears on the Save Our State Web site, gave $2,400 to commission members.
Unlike the pending Question 1, the 2003 Special House Commission to Study Gaming report also stated, "voter approval should lead to the establishment of an independent regulatory body to commence a competitive casino development process."
"(The General Assembly) ignored the recommendations of their own commission on gaming," Costa said. But according to Williamson, no one denied any organization or casino operator the opportunity to come forward with a proposal, citing a 2003 failed piece of legislation calling for a competitive bid process. "It was Governor (Don) Carcieri ('65) who threatened to veto it because it was too vague," Williamson said. Carcieri also opposes Question 1.
A statewide majority voting "yes" on Question 1 does not guarantee construction of the Narragansett casino - a caveat of the resolution mandates that a majority of voters in West Warwick must approve Question 1.
In February 2003, the West Warwick Town Council voted to support the casino project. Much of the council's support came after a Christiansen Capital Advisors study detailed the potential employment and revenue benefits of a casino for West Warwick and local businesses.
Harrah's Entertainment paid $21,000 for that study.
