It’s become barely a blip on the news radar – executives of a Las Vegas gambling giant rolling through Rhode Island for a day, attempting to drum up support for a casino in West Warwick.
They meet with journalists, policy-makers and business leaders, looking to quell any issues they may have with a full-scale resort casino. They try to sway the opinions of people who’ve heard the story often in recent years.
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This is spring in Rhode Island.
On March 31, Harrah’s Entertainment CEO Gary Loveman visited the state to field questions from the media and lobby groups such as the Greater Providence Chamber of Commerce, which has opposed the casino in the past.
He joined a group that looked similar to last year’s team, including Harrah’s Vice President Jan Jones and Narragansett Indian Tribe Chief Sachem Matthew Thomas, and spoke about his company’s desire to amend the state constitution to make way for a casino.
Harrah’s has played the lobbying game before, Loveman said. The company operates in 43 locations worldwide. But it’s never had to make a perennial push such as in Rhode Island.
“It is common to do it once,” Loveman said. “It’s not common to do it annually for as long as we’ve been doing it here.”
Two years ago, it looked like Harrah’s executives wouldn’t have to make routine trips to Rhode Island anymore.
Legislation putting the project before Rhode Island voters – a requirement under state law – was passed by the General Assembly. Gov. Donald L. Carcieri, a staunch casino opponent, quickly vetoed the legislation, but both chambers of the assembly overrode his decision shortly before the end of the session.
Then, in a surprise move, Carcieri asked the R.I. Supreme Court for an advisory opinion on the legislation. The court found that the measure didn’t pass muster under the state constitution.
This year, Harrah’s is looking for an amendment to the state’s constitution to approve the casino. The proposal lays out few specifics, except that the casino would be located in West Warwick and that the Narragansett Indian Tribe, a minority partner in the project, would be “dedicated to property-tax relief.”
The phrase “property-tax relief” sticks out in the fairly tame piece of legislation.
The money-making juggernaut that would be a Harrah’s Casino would give money to just about every party involved. The town of West Warwick would receive close to $20 million. The Narragansett Indian Tribe would receive a sizable share of the profits from the project.
And the state would receive between 25 and 40 percent of the casino’s profits annually.
But opponents have argued that the money generated from the project will not compensate for the money lost by the casino’s presence.
At the R.I. Hospitality and Tourism Association’s Economic Outlook Breakfast last week, Carcieri cut to the core of the argument.
In a denunciation of the project, the governor recalled how the opening of Foxwoods Resort Casino in Connecticut took away business from the now-closed Warwick Musical Theatre. He appealed to hospitality leaders, saying that casinos derive the majority of their profits from dining and lodging, not gambling.
All of this, he said, is a sign that its presence would adversely impact surrounding bars and restaurants.
“The notion that there are additional jobs and additional revenues is foolish because nobody is looking at the other side – all of the jobs that would be lost and all of the revenue that would be lost,” he said.
But Loveman said casinos do not destroy an area’s economy. In fact, he said, they add value well beyond revenue given to the state.
“Casinos generate a huge amount of visitation – tens of thousands of visits per day,” he said. “Those visits are not substitutes for people going to the ballet or to [the Providence Performing Arts Center]; they’re not substitutes for people enjoying a nice meal downtown. Instead, they’re catalysts that put people in Rhode Island that otherwise wouldn’t be.”
The lobbying efforts of the company has led to some big name support for the project – namely GTECH, the lottery giant based in West Greenwich. As part of an agreement finalized last year, GTECH said it would support Harrah’s efforts.
In return, the company will be able to put its video lottery terminals in Harrah’s casinos.
As Harrah’s executives tried to keep support going for the project last month, they were joined by GTECH CEO Bruce Turner. He agreed with Harrah’s executives that there is “fatigue” on the casino issue after years of struggles.
“We’ve got meaningful challenges that any small state has,” Turner said. “It’s probably time we put this issue behind us one way or another.
