Casino

PROVIDENCE — With critics queued up and ready to pounce, House Democratic leaders at the last minute yesterday pulled from the House calendar a 24-hour gambling bill that critics fear will bring the two state-sanctioned slot parlors one step closer to becoming full-fledged casinos.

Inside the House, lawmakers stood ready with close to two dozen amendments aimed at giving Lincoln and Newport a say before the state expands gambling hours; steering more money to these two host communities; increasing the amount the state spends on problem-gambling treatment out of its $1.8-billion-a-year gambling operation, which includes the 5,800-plus video-slots at Twin River and Newport Grand and earmarking the new money from overnight gambling to education.

Fearing passage of the bill, the Rev. Eugene McKenna and several other members of Citizens Concerned about Casino Gambling drove from Newport yesterday to read aloud a statement accusing the General Assembly of “betraying” the voters statewide — and most recently in Lincoln — who have said no to more gambling, and more recently, to expanded hours.

They also demanded a commitment from Governor Carcieri to veto the bill, saying: “Rhode Island already has the highest per capita income from gambling, more than any other state in the union. Enough should be enough. Governor, listen to the voice of the people and veto any expansion of gambling in Rhode Island.”

But the bill was yanked from the House calendar without official explanation. A hopeful Rep. Nicholas Gorham, R-Coventry, said: “I think it’s an ugly bill and I don’t think, at this point, the leadership has the stomach for it.”

House Speaker William J. Murphy would only say that he was still seeking an agreement with Senate President Joseph A. Montalbano on terms “so we do not have to play ping-pong with this legislation,” aimed at helping the state close a massive deficit.

But Sen. Paul Moura, D-East Providence, sponsor of a matching Senate bill, still scheduled for a vote today, said he had been told there had been a late-day “breakdown” in conversations between Murphy and Montalbano, who has been seeking a “significant increase” in the revenue-share paid to Lincoln, which is in his Senate district.

Montalbano did not respond to inquiries, but Moura said he had been assured the Senate will, in fact, vote today on his bill allowing round-the-clock gambling at both Twin River and Newport Grand on weekends and holiday eves, with a likely last-minute amendment giving their home communities something extra “for any added inconvenience.”

Support for the bill has ridden so far on promises it could produce $14.8 million more annually for the state, at a time when lawmakers are wrestling to close projected deficits of $151 million this year and $384 million next year.

More money for the state also means more money for the owners of Twin River, who have fallen behind on their $577 million in outstanding loans to buy and rehabilitate the aging dog track. The track is owned by a consortium that includes Kerzner International, Starwood Capital and the Waterford Group in Connecticut. Two of the principals — Sol Kerzner and Len Wolman — are backing the proposed Mashpee Wampanoag casino in Massachusetts.

But voters in Lincoln voted overwhelmingly against round-the-clock gambling at Twin River during a nonbinding referendum in November, and the Lincoln Town Council reaffirmed its opposition in a resolution passed, 4-to-1, last week.

In recognition of “the increased service, nuisance and public safety burdens expansion would place on the town,” the council asked lawmakers to raise Lincoln’s share of the revenue to at least 4 percent, and guarantee town approval at a binding referendum for any future hours expansion.

In the days leading up to yesterday’s anticipated vote, lawmakers representing Lincoln and Newport readied a passel of proposed amendments. One would have required city and town council approval for overnight gambling. Another would dedicate any unclaimed Lottery ticket winnings to problem gambling treatment. Last year, the Lottery had $3,979,177 in unclaimed prizes; this money is transferred to the general fund.

Others seek to increase the shares that go to Lincoln and Newport. During the 2007 budget year that ended June 30, Lincoln received $4,312,186, and Newport, $753,069. If current trends hold, Lincoln will receive a potential $4,932,075 this year, and Newport, an estimated $721,229.

On his own, Lincoln resident John Mongelli tried to convince the lawmakers to commit more money to problem-gambling treatment.

He pointed to a February 2007 report by the Center for Policy Analysis at the University of Massachusetts-Dartmouth that found: 1.6 percent of the adults in Rhode Island are pathological or problem gamblers, compared to an estimated 2.7 percent nationally. The study classifies 28,380 Rhode Islanders as “at-risk gamblers,” 7,095 as “problem gamblers” and 5,518 as “pathological gamblers.”

Put another way: an estimated 13,000 Rhode Island residents have serious gambling problems that “currently cost Rhode Island ‘society’ [not the government] about $17 million per year in the form of lost productivity, social services, treatment, bankruptcy, divorce proceedings et cetera,” according to the study.

The General Assembly earmarked $175,000 in fiscal year 2006 for problem-gambling treatment, $166,250 in ’07 and $149,625 this year, which the governor’s proposed budget would slice, in half, to $74,813 next year.

The Lottery itself has been paying the $25,791 annual tab for a “Rhode Island Lottery Play Responsibly Helpline.” In February, the projected contract cost went up to $29,331.96. The Lott spent an additional $4,941 on production and airtime for “Play Responsibly” television and radio spots.

Even if this bill eventually sails through to the governor as expected, this is not necessarily the end of the gambling debate for the year. One bill by Rep. William San Bento, D-Pawtucket, would allow Twin River and Newport Grand to add another 500 or so machines. Another would put a question on the November ballot to allow full-scale casino gambling, including table games, at the two slot parlors.

A Twin River spokeswoman said: “We certainly applaud the efforts of the senators and representatives who are working so hard to close the state’s budget gap and in general, we are receptive to any and all initiatives that may allow us to maximize revenues at Twin River,” but “we have not taken any formal positions on the above mentioned legislation.”

Asked recently if 24-hour gambling sponsored by San Bento in the House and Moura in the Senate are the only gambling bills the legislature is likely to take up this year, House Majority Leader Gordon D. Fox, D-Providence, said: “Maybe, maybe not.”

He said the two other San Bento proposals are not currently under discussion and neither facility has asked to renegotiate their revenue agreements with the state, but as concerns rise about the state’s financial condition, “everything is open for discussion.”

The Lott currently projects $290 million for the state this year and $303 million next year from the acres of video-gambling machines at the two facilities.

kgregg@projo.com