Casino

Each day this week, The Providence Journal will pose and answer questions about the proposed West Warwick casino. Readers are invited to submit their own questions at projo.com. We will select representative questions to answer in The Sunday Journal. Past questions can also be viewed online.

Q: Can anyone bid for the casino license?

A: No. Three years ago, a special House Commission to Study Gaming issued a report that said competitive bidding “would be needed to ensure the best agreement for Rhode Islanders.” This year, a Colorado developer was partnered with Donald Trump’s casino company to bring a casino to Johnston. But the ballot question lawmakers settled on would give the Narragansett Indian tribe and its “chosen partner” exclusive rights to build a casino.

Q: Who is Harrah’s?

A: The Las Vegas-based company (stock symbol HET) was founded in 1937 and is the world’s largest casino operator, with 39 casinos in three countries and $7.1 billion in revenue last year.

Q: Isn’t Harrah’s being sold?

A: Harrah’s acknowledged last month that Apollo Management and Texas Pacific Group, two private-equity firms, offered to buy it for $15.1 billion. That offer has since reportedly been raised to $15.5 billion. Regardless of the pending buyout offer, Harrah’s says it is committed to the Rhode Island proposal.

Q: Could the tribe partner with another casino company?

A: Nobody is quite sure. The chief sachem, Matthew Thomas, says if Harrah’s doesn’t live up to the tribe’s expectations, he would dump it. But the full agreement between the tribe and Harrah’s has never been made public and it is unknown what financial penalties — if any — the tribe would face if it partners with another casino company.

Q: Didn’t a Harrah’s casino in New Orleans go bankrupt?

A: Yes. A New Orleans casino with the Harrah’s name filed for Chapter 11 bankruptcy protection in 2001. It was the second time in five years that the casino had filed for bankruptcy. Harrah’s owned 49 percent of the casino company JCC Holding Co. After the second bankruptcy, Harrah’s bought out the rest of JCC and paid off the creditors. Louisiana lawmakers lowered the casino’s tax rate, and allowed it to operate restaurants and hotel rooms. It has since been profitable.

Q: Why can’t the tribe build a casino on its land in Charlestown?

A: Most federally recognized tribes are allowed certain types of gambling on their land as long as their state already has that form of gambling. But the late Sen. John H. Chafee pushed through Congress in 1996 an amendment that, in effect, took away the tribe’s ability to have gambling.

Q: Would the casino cause water shortages?

A: The Kent County Water Authority has already promised water to several developments that could lead to a 300,000-gallon-a-day shortage. The casino expects to use about 200,000 additional gallons a day but Harrah’s has said it hopes the authority will find new water sources by 2010 when it opens. Harrah’s also plans to dig its own wells, collect storm water and install low-flow showerheads.

Q: How much money has been spent on this campaign?

A: From June through Oct. 24, Harrah’s has spent $11.7 million. That figure does not include any of the money spent over the past four years on lobbying, advertising, building plans, engineering reports or any other expenses. Save Our State has spent $2.8 million. The bulk of that money — $2.6 million — has come from Lincoln Park and Newport Grand.