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September 25, 2006

RIPEC: State could lose $1 billion if casino approved

Rhode Island could lose $1.1 billion over 11 years if a proposed West Warwick casino becomes reality, according to a study released this afternoon by casino opponents.

The casino would generate new tax revenue, but not enough to offset the state’s losses from its two existing gambling parlors, Lincoln Park and Newport Grand, according to the Rhode Island Public Expenditure Council.

The report, which looks at the casino’s first 11 years of operation, comes 42 days before voters are to decide if they want to amend the state Constitution to allow Harrah’s Entertainment and the Narragansett Indian Tribe to build a casino.

RIPEC estimates that Harrah’s casino would bring in $1.7 billion in new tax revenue over the 11-year period. But at the same time, the casino would entice gamblers away from Lincoln Park and Newport Grand, creating a $2.8 billion loss.

The result: A $1.1 billion revenue shortfall for the state.

Harrah’s acknowledges that there will be a loss of business at Lincoln Park and Newport Grand, but said that RIPEC’s estimates are too high.

Narragansett Chief Sachem Matthew Thomas said he's not surprised at the results in RIPEC's latest study, given the group's "long-standing bias" against the casino.

“RIPEC has been biased against this project since the beginning so no one should be surprised that they have produced a biased study which puts the Narragansett Indian Casino in an unfavorable light,” Chief Thomas said.

"The Narragansett Indian Casino will jump-start this economy, create thousands of good paying jobs, provide millions in tax relief and grow small businesses in Rhode Island.”

Newport Grand said it couldn’t recover from the decline in business that RIPEC is predicting.

“The outcome is bleak at best, most likely fatal,” said Diane Hurley, chief executive officer of Newport Grand.

And Lincoln Park today called RIPEC’s estimates too low.

“One of the things that makes us feel very comfortable with our analysis is that both sides are questioning it,” said Gary Sasse, executive director of RIPEC, a business-backed research group that has joined Save Our State, an anti-casino lobbying group mostly funded by Lincoln Park.

-- Journal staff writers Scott Mayerowitz and Andrea L. Stape

Posted by Peter Phipps  at 2:40 PM | Permalink

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