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High court: 2nd casino bill fails constitutional muster

05:36 PM EDT on Monday, September 19, 2005

The Associated Press

PROVIDENCE -- A bill that would allow the Narragansett Indians to open a casino on nontribal land does not pass constitutional muster, the state Supreme Court said in an advisory opinion today, responding to a request by legislators who crafted the bill.

In its opinion, the court said the measure fails to satisfy a provision of the state constitution that requires any lotteries in Rhode Island to be state-run.

Las Vegas-based Harrah's Entertainment and the Narragansett Indian Tribe are seeking to build a casino in Rhode Island, off their tribal lands in Charlestown. Lawyers presented oral arguments last month to a three-justice panel of the state's highest court.

The high court's opinion today said the legislation would leave the state Lottery Division without control over the proposed casino, including the types of table games played there and the extension of credit to gamblers.

Without direct authority over those parts of the operation, the justices wrote, "the state simply cannot in good faith be said to be operating the casino."

The justices note that the proposed legislation did give the state more power -- including the ability to direct daily revenue, set the odds of winning and determine the number of table games and video lottery terminals -- than a bill introduced last year. But they said it was not enough to comply with the state constitution.

"To summarize, we interpret the proposed Casino Act as granting to the Lottery Division the power to make decisions concerning many, but not all, operational aspects of the gaming enterprise," the opinion reads.

It's the second time in about a year that the court declared the casino plan unconstitutional.

Proponents of the casino plan retooled their proposal and asked the court again for an advisory opinion on the pending legislation, which also called for putting the plan before voters for their approval.

The court said in its opinion that while the House of Representatives "has taken great strides" in resolving some of the justices' objections, there were still problems with the plans.

The tribe has tried for more than a decade to get approval to build a casino.

A year ago last August, the high court derailed a Harrah's-Narragansett casino proposal for West Warwick as it was headed to the state ballot after clearing the General Assembly and surviving a gubernatorial veto.

Responding then to an advisory opinion request from Governor Carcieri, the court said the casino legislation and referenda question ran afoul of a requirement in the state Constitution

that all "lotteries" be state-operated.

To remove this legal barrier, the casino's legislative backers introduced a new version of the bill this year.

It recast the proposed West Warwick casino as state-operated, to be run by the Narragansetts and their chosen partner under a contract with the state Lottery Commission.

Under the aegis of House Speaker William J. Murphy, of West Warwick, the House voted to seek the court's opinion first this time, before voting.

Carcieri praised the court's opinion today, saying Harrah's had put forward an "unconstitutional scheme."

"For two years in a row, the Rhode Island Supreme Court has ruled the Harrah's casino legislation unconstitutional," the governor said in a statement. "I have said all along that this is nothing but a Harrah's casino. For the second time in a row, the Supreme Court has agreed with me."

Sandra Lanni, a lawyer for the House of Representatives, did not immediately return a call for comment today from The Associated Press, nor did Chief Sachem Matthew Thomas of the Narragansetts.

-- With Journal archival reports

CORRECTION: An earlier version of this report incorrectly indicated that casino proposal was for tribal land.

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