Casino

The House Finance Committee holds a hearing on 24-hour gambling bills at the Colony House in Newport, which attracted anti-casino activists, lobbyists, and legislators whose communities may be affected by the legislation. From left, Rep. Bruce Long, Newport Mayor Stephen Waluk, Rep. William McManus, Rep. John Loughlin II and Craig Sculos, vice president and general manager of Twin River. The Providence Journal / Connie Grosch

NEWPORT

A steady stream of people went before the House Finance Committee yesterday to urge its members to reject legislation that would allow 24-hour gambling in Rhode Island.

At a special hearing at Colony House, the only speakers to voice support for the bill were representatives of Newport Grand and Twin River, the two gambling halls that would benefit from the expanded hours, a Teamsters official who cited the prospect of creating new jobs for union members and Rep. William San Bento, who introduced the legislation as a way to increase state revenue.

More than 150 people packed the historic meeting house on Washington Square for the afternoon hearing. Many of them held signs proclaiming their opposition to a change in the law. The two dozen that spoke included town officials, clergy members and anti-gambling advocates.

Newport Mayor Stephen C. Waluk’s testimony was typical of the sentiment expressed during the 2½-hour meeting.

“We are very well aware of the financial hardships facing the State of Rhode Island,” he told the committee. “However, this is not the right way to balance a budget.”

The committee took testimony on two bills. One would allow Newport Grand and Twin River, in Lincoln, to stay open around the clock, with the state’s share of the additional revenues going to the general fund. The legislation was introduced by San Bento, the chairman of the legislature’s Permanent Joint Committee on the State Lottery.

The other bill, introduced by Rep. Russell J. Jackson, D-Newport, would define 24-hour gambling as an “expansion of gambling,” subject to statewide and local referenda. If Jackson’s legislation were approved, not only would voters statewide have to approve the idea, but so would the two communities where the gambling facilities are located.

There has been considerable resistance in some quarters to expanded gambling hours. Indeed, yesterday’s hearing was held in Newport in part to address the concerns of Concerned Citizens Against Casino Gambling. The Newport-based advocacy group agreed to call off a protest against 24-hour gambling outside a Christmas party organized by House Speaker William J. Murphy after he agreed to move the hearing to the City by the Sea.

Both the Newport City Council and its counterpart in neighboring Middletown have voted unanimously against extending gambling hours in the state.

And in a nonbinding referendum in Lincoln last November, nearly two-thirds of voters opposed allowing round-the-clock gambling at Twin River. Shortly afterward, the Lincoln Town Council sent a resolution to the legislature restating its opposition to the proposal.

But recently, council President Jeremiah T. O’Grady relented, saying he could support expanded hours but only on weekends and holidays and only if Lincoln gets a share of the increased revenue.

He explained his change of heart by citing “a climate of inevitability” surrounding the gambling legislation.

The state is struggling to close a sizeable hole in its budget, and the increased revenue from round-the-clock gambling would not be insignificant. Craig Sculos, vice president of Twin River, which is open daily from 9 a.m. to 2 a.m., told the committee the expanded hours could pump an additional $16.5 million annually into the general fund “with little or no impact to the local community.” Chris Boyle, a lobbyist for Newport Grand, which operates between 10 a.m. and 1 a.m., told the committee yesterday that the change could increase its contribution to the state by $3 million a year.

O’Grady testified yesterday, repeating his belief that the legislation’s approval appears to be a done deal. Rep. John P. Shanley Jr., a member of the committee, took issue with the Lincoln councilman’s claim.

“There is no juggernaut on this bill or any bill before us,” said Shanley, D-South Kingstown, who cosponsored the legislation. “We have to debate what we have before us.”

For his part, San Bento defended the legislation.

“The reason I put this bill in is pure and simple,” the Pawtucket Democrat told the audience. “We have a huge deficit. It’s money. Money is what keeps this state going.”

But those opposed to the bill said there are hidden costs of gambling that make extending the hours of Newport Grand and Twin River a shortsighted solution to the budget deficit.

“Gambling is a zero-sum game,” said Portsmouth resident Peter Roos. “What it gains for one part of the economy it takes from another part of the economy.”

Others said that public safety and quality of life in Newport and Lincoln would be negatively affected if the change were approved. Jackson said the two communities must have final say over the proposal.

“Whether you’re for it or against it, at least you’ll have an opportunity to vote on it,” he said.

Waluk was more emphatic, telling the committee that any extension in gambling hours at Newport Grand without approval from the city’s voters would be “unconstitutional.”

“I implore you all to respect Newport’s sovereignty,” he said.

House Finance Chairman Steven M. Costantino, D-Providence, said that whether an extension of hours amounts to an expansion in gambling depends on how one interprets the state Constitution.

“That will be decided over time,” he said.

Speaking to the representatives of Twin River and Newport Grand, Costantino said the gambling industry needs to do more to treat problem gambling. He encouraged them to finance treatment programs and pursue other initiatives. They said they would try.

But the Rev. Gene McKenna, the leader of Concerned Citizens Against Casino Gambling, suggested a simpler solution.

“We think the easiest way to treat problem gambling is not to create more problem gambling,” he said.R.I. gambling parlors

Twin River

4,752 slot machines

Revenue to state:

$208.1 million*

Increase with 24-hour

operation: $16.5 million

Newport Grand

1,070 slot machines

Revenue to state:

$47.3 million*

Increase with 24-hour

operation: $3 million

*Fiscal year 2007

Sources: Twin River, Newport Grand, Rhode Island State Lottery

akuffner@projo.com