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Justices advise casino bill illegal

Asked whether yesterday's decision means the casino proposal is dead, Governor Carcieri says, "You never know."

08:28 AM EDT on Friday, August 13, 2004

BY LIZ ANDERSON
Journal State House Bureau

PROVIDENCE -- The state Supreme Court yesterday, in an advisory opinion, declared unconstitutional both a planned November vote on a West Warwick casino and the legislation establishing the casino.

The court sided with Attorney General Patrick C. Lynch and Governor Carcieri, who sought the nonbinding opinion, arguing that the proposal violates a constitutional provision that puts the state in charge of operating all "lotteries."

Lynch and Carcieri promptly filed motions in Superior Court seeking to take the casino question off the ballot. Secretary of State Matt Brown said he would support the move.

The ballot question would ask voters, "Shall there be a casino in the Town of West Warwick operated by an affiliate of Harrah's Entertainment in association with the Narragansett Indian Tribe?"

Superior Court Judge Daniel A. Procaccini is scheduled to hear the request to block the question from the ballot at 9 a.m. today. It is unclear whether Harrah's Entertainment will try to oppose it, or what standing they would have to do so.

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Journal photo / Frieda Squires
Governor Carcieri hails the Supreme Court opinion yesterday as a victory that "upholds the principle [that] the Constitution cannot, and should not, be perverted in order to help a huge out-of-state casino giant."

Harrah's spokesman Gary Thompson said yesterday the company had no comment on the strongly worded Supreme Court decision, or what the company's next step would be.

Yesterday's opinion was the latest twist in the Narragansetts' years-long fight to develop a casino in Rhode Island. The arguments for and against a casino have played out loudly in this year's Assembly session and in advertising campaigns that are expected to grow more fierce if the question stays on the ballot.

Matthew Thomas, chief sachem of the Narragansetts, said yesterday he was speaking to lawmakers about whether there is any way to save the casino proposal for this year, including asking voters to change the Constitution.

"The people really want to vote on this issue, and to deny the people the right to vote on this issue that has been in the forefront for 14 years would be the crime of the millennium," Thomas said. "It would just be unfathomable."

But the secretary of state said it was too late to add to the November ballot. Due to strict printing schedules, Brown said, the deadline for putting new items before voters passed last week; next Thursday is the deadline for removing existing questions.

Guy Dufault, a spokesman for the tribe, said later the Narragansetts are reviewing their legal options.

Carcieri hailed the decision as "a victory for the Constitution and for the people of Rhode Island." He said it "upholds the principle the Constitution cannot, and should not, be perverted in order to help a huge out-of-state casino giant."

And Lynch, the attorney general, praised what he called a "resounding" opinion declaring "that this question, without question, is unconstitutional and our community should not waste its time, energy and money" considering it.

"Clearly this matter was flawed from the outset," he added.

The unanimous decision was signed by all three judges who heard the case: Supreme Court Chief Justice Frank J. Williams, Justice Paul A. Suttell, and retired Chief Justice Joseph R. Weisberger, who filled in because of conflicts-of-interest among the three other active justices.

THE LEGISLATURE passed the Casino Act on June 25. Carcieri vetoed it on July 1, and on July 9 he made his request for an advisory opinion from the Supreme Court. The Senate overrode the veto on July 23, and the House followed suit on July 30. The justices heard arguments on the governor's request last Friday.

The governor said an advisory opinion was the fastest way to take the pulse of the court; his lawyers will now ask the Superior Court to adopt the high court's reasoning as the first step in the bid to have the measure stricken from the ballot.

Supporters of the referendum had suggested Carcieri had no standing to bring the challenge, because the administration would play no role in the casino process unless a ballot question were approved by voters. The three judges said the point had merit, but that they wanted to issue a ruling because the issues involved "are of great public and constitutional importance."

"If, as we believe, the question and legislation are void as unconstitutional, then members of the public will waste much money, time, effort and energy to familiarize themselves with the controversial issues that the proposed casino has raised," they wrote. The confusion, they said, would be "intensified" by the opposition of the governor and attorney general.

Because of that, "to delay the issuance of our opinion would only postpone the inevitable," they wrote. "If we were to sit idly by while an unconstitutional question was submitted to the voters, only to later issue a binding decision declaring the Casino Act and the referendum question void, chaos might well ensue."

Carcieri and Lynch said the specifically worded question allowing an affiliate of Harrah's to operate the casino violated a 1973 constitutional provision that reads: "All lotteries shall be prohibited in the state except lotteries operated by the state and except those previously permitted by the General Assembly . . . "

The court agreed, saying the prohibition "is expansive and should be broadly interpreted." The opinion considers in detail the definition of a lottery, requiring three essential elements: consideration, chance and prize.

One key question is whether the "dominant factor" in the games is chance -- clearly the case for roulette, craps and slots, and arguably so even in games that mix in skill, such as poker.

"At the poker table, for example, an experienced gambler may 'know when to hold 'em, know when to fold 'em, know when to walk away, and know when to run,' " the judges wrote, quoting a hit song from country crooner Kenny Rogers. "A seasoned blackjack player may know the appropriate situation to hit or stand based on the cards dealt around the table. But even in these games, the outcome depends heavily on the luck of the draw."

THE JUSTICES said further that the ballot question is clear that Harrah's would be the casino operator, and that the accompanying legislation "clearly and unambiguously" relegates the Lottery Commission's role to a regulatory one. That situation, they said, is "an unconstitutional divestiture of operational control over a lottery to an agency other than a state organization such as the Lottery Commission."

The justices also said that while the Constitution requires that voters approve any expansion of gambling, such a vote does not override the requirement for the state to operate all lotteries.

Overall, the justices declared the constitutional problems "fatal" to the casino proposal, saying to remove the objectionable portions would "leave the legislation in tatters."

In an aside, they also chastised lawmakers for including in the legislation a provision to bar the high court from keeping the question off the ballot. The court said the Assembly has no such authority. Justices said it "impermissibly usurps the judicial power entrusted to this Court and the trial courts" by the Rhode Island Constitution.

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Journal photo / C.J. Gunther
Attorney General Patrick C. Lynch talks with reporters in his office after a news conference yesterday. He and the governor today are expected to seek a court order that would block the casino question from the November ballot.

CARCIERI AND LYNCH today are seeking a temporary restraining order and, ultimately, they hope to get a permanent injunction to keep the question off the ballot.

Asked whether yesterday's decision meant the casino proposal was dead for the year, Carcieri said, "You never know. . . . Hopefully it is."

The governor said it would be up to Judge Procaccini to decide whether Harrah's or the Narragansetts have any right to participate in today's and subsequent court proceedings. The governor's in-house laywer, Andrew Hodgkin, said that decision would be "a close call."

Michael Trainor, a spokesman for Lincoln Park, said the judges' opinion moves the Harrah's proposal "from a bad deal to a nightmare deal." Trainor said Harrah's should accept the court's opinion and let the referendum die.

Lincoln Park, which operates the dog track and about 2,500 video-slot machines licensed and regulated by the state Lottery Commission, has been a vocal opponent of the casino.

"We certainly agree with the governor and the Supreme Court that it would be senseless to put the voters through a difficult, expensive and ultimately meaningless campaign," he said.

Newport Grand, the state's other slot-machine venue, and the Greater Providence Chamber of Commerce also sided with the governor's bid to block the vote.

Stephen D. Alves, D-West Warwick, Senate Finance Committee chairman who sponsored the casino legislation, said he was disappointed for his hometown and the Narragansett Indians.

"Every time they reach the threshold," he said of the Narragansetts, "they encounter a new roadblock."

"But I suppose, given the makeup of the three-member panel, none of us were surprised," Alves said. "They are three Republican appointees, and the Republican governor is opposing it."

Alves said it was "ridiculous" for the panel to say that "chaos might well ensue" if the judges did not offer their opinion now. "They don't give the people of the state enough credit," he said.

If the question were placed on the ballot and later declared unconstitutional, it could simply become a nonbinding referendum, Alves said.

But is the measure dead for this year? "Nothing is ever dead around here," Alves said. "You can lose a battle and still win a war."

House Speaker William J. Murphy, D-West Warwick, in a statement, said he, too, was disappointed in the court's opinion. Murphy said it was the legislature's intent to give voters a voice on the matter, but it appeared the court would block the vote.

Thomas, the Narragansett chief sachem, said he was taking yesterday's developments in stride.

"You know, it's just another day for us," he said. "It's just how it works for us in this state. You get kind of used to it."

Like Alves, he also suggested politics played a role.

Carcieri decried such comments.

"I think because you don't get the decision you want, to attack or impugn the integrity of the justices is a very sad thing to do," he said.

With reports from staff writer Edward Fitzpatrick.

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