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24-hour gambling OK’d on weekends, holidays

01:44 PM EDT on Wednesday, April 30, 2008

By Katherine Gregg and CYNTHIA NEEDHAM

Journal State House Bureau

PROVIDENCE — The House and Senate yesterday approved 24-hour gambling at the state’s two video-slot emporiums on weekends and holidays, after a raucous debate in which critics accused the Assembly’s Democratic leaders of violating both the Constitution and the wishes of people living in Newport and Lincoln who have repeatedly said “no” to more gambling.

Along the way, the lawmakers rejected amendment after amendment that would have required voter approval, a larger appropriation for problem-gambling and a hike in the state’s legal gambling age to 21.

As is the custom at the Rhode Island State House, members of the Senate still have to approve the House version of the bill, and vice versa if one or both is to become law. So overnight gambling is not yet allowed in the state, but it’s moving quickly in that direction.

On a 27-to-6 final vote, the Senate approved a previously unseen version of the bill that committed an additional $1.1 million to Lincoln, one of the home districts of Senate President Joseph Montalbano, and an extra $173,005 to Newport, the hometown of Senate Majority Leader M. Teresa Paiva Weed, who recused herself from both the vote and discussion because her law firm represents Newport Grand.

The bill now commits up to $14.1 million of the anticipated new gambling money to “aid to local education,” with Montalbano acknowledging this might not necessarily result in an increase for the communities in this tough budget year.

The bill also contains a June 30, 2009, sunset clause that means the lawmakers will have to vote again next year if 24-hour gambling is to continue after a one-year trial run.

This first step toward 24-hour gambling was described as a way to raise millions of additional dollars to help plug massive deficits this year and next without raising taxes.

Overall, the lawmakers anticipate overnight gambling will produce an additional $15,014,098 for the state, including the money the bill shears off and gives to Lincoln and Newport, as the host communities to Twin River and Newport Grand.

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 overwhelmingly defeated round-the-clock gambling at Twin River in a nonbinding referendum in November, and the Lincoln Town Council recently reaffirmed its opposition in a resolution passed, 4-1.

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 and guarantee town approval at a binding referendum for any future expansion of hours.

“The only reason we’re doing this is because we need the revenue,” said House Minority Whip Nicholas Gorham, R-Coventry. “This is just another way of putting off important issues about spending in this state.”

But House Finance Chairman Steven Costantino encouraged lawmakers to look at the global picture. “This is a way of maximizing a revenue source. It’s absolutely necessary,” he said, “if you’re concerned about maintaining education…health care and human services…[and] local aid. All these issues get threatened as we erode revenue in the state of Rhode Island.”

The Senate debate was comparatively brief, with Montalbano leaving the rostrum so that he could argue from his rarely used seat in the middle of the chamber for the bill which, he said, provides the “most significant tax relief” that Lincoln — home of the Twin River greyhound track and slot parlor — has ever seen.

Acknowledging the concerns that led Lincoln voters to reject expanded gambling, Montalbano said the sunset provision would give the town and the state a chance to reassess just how much of a burden a train of cars headed for Lincoln in the middle of the night was actually placing on the community.

But several lawmakers voiced their discomfort at allowing more gambling, without voter approval, especially in the overnight hours of each Sunday and on holidays that include Christmas.

Recalling that when he grew up “everything” was closed on a Sunday, Sen. Harold Metts, D-Providence, voiced fear that overnight gambling on weekends was one more incremental step toward making Twin River and Newport Grand full fledged casinos. He also twice repeated a Biblical phrase that kept spinning in his head: “Remember the Sabbath and keep it Holy.”

The bill cleared the House on a final 51-to-19 vote after close to three hours of heated debate in which House Minority Leader Robert Watson, at one point, accused the Senate leaders across the hall of making a money-grab for their own communities to the “detriment” of the rest of the state.

“They are getting paid off,” he hollered.

As for the implicit promise that overnight gambling will provide additional aid to education, Gorham said: “It’s a bunch of baloney. It’s not going to help your community.”

But Rep. Charlene Lima, D-Cranston, said: “It’s ridiculous to hear people say that we are going to be creating a monster. Gambling is here. … It’s going to bring more money into this state. … This will help us not raise taxes for the people.”

But one after another, the members of the Newport delegation said their community did not want the additional gambling hours, and never suggested — as officials in Lincoln did — that their concerns could be mollified with a larger share of the revenue pie.

“Newport has stated loud and clear it doesn’t want an expansion of gambling,” said Rep. Steven Coaty, R-Newport.

A heated exchange with House Speaker William J. Murphy left in question whether the eleventh-hour amendment providing the additional money for Lincoln and Newport had cleared the House with enough votes.

Proposed by Costantino, the House Finance Committee chairman, it won House approval on a 49-to-21 vote. Within seconds, Gorham was up on his feet, declaring that a local appropriation requires two-thirds approval — in this case, 50 of the 75 House votes — under the state Constitution.

With Gorham and Watson still arguing at top volume after Murphy told them he did not agree, the speaker told them to “get control” of themselves and House Majority Leader Gordon Fox, D-Providence, said: “Take us to court. Let’s move on.”

More specifically, the bill would raise Lincoln’s share of the video-slot revenue from 1.26 percent to 1.45 percent any week in which the overnight gambling is allowed, and Newport’s from 1.01 percent to 1.2 percent. Before these adjustments, the state Lottery pegged Lincoln’s share of the $290-million video-slot bounty at approximately $4.9 million this year, and Newport’s at approximately $738,310.

The House rejected a bid by Rep. Deborah Fellela, D-Johnston, to raise the minimum age for Rhode Island gamblers to 21. She called it a smart way to protect youngsters, not just from gambling, but from the drinking and poor behavior habits that can accompany the activity.

But the amendment went down after Costantino warned the House that raising the age just three years would cost the state up to $15 million a year in revenue.All night long

The legislation approved yesterday allows Twin River and Newport Grand to operate from 9 a.m. on Fridays to 3 a.m. on Mondays. It also allows the gambling facilities to operate on a 24-hour basis on all federal and state holidays.

cneedham@projo.com

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