Rhode Island news

Harrah's gambles millions on voters in Rhode Island

01:00 AM EDT on Wednesday, August 9, 2006

BY SCOTT MAYEROWITZ
Journal State House Bureau

Harrah's Entertainment is spending $87,820 a day to persuade Rhode Islanders to support a proposed casino.

Needless to say, the fight over the November ballot question is going to be very, very costly.

Last month alone, Harrah's spent more than $2.7 million -- or $87,820 each day -- according to a filing with the state Board of Elections. In June, the Las Vegas-based casino company spent $125,000, bringing its total to $2.85 million.

By comparison, in May, June and July the three main candidates here for U.S. Senate spent a combined $2.85 million.

The bulk of Harrah's money went to advertising.

"Issue elections cost a lot. That's obvious to everyone," said Clare Eckert, spokeswoman for Rhode Islanders for Jobs and Tax Relief, the Harrah's-financed group buying the ads. "The important element of any expenses we have are to inform the public."

Last month, more than $2.2 million was spent to buy TV, radio and newspaper ads, including several in The Providence Journal. Some of that money -- it is not clear what percentage -- was prepayment of TV air time in future months. Eckert was unable to say what share was for future ads.

It was also unclear yesterday whether the filing included all of Harrah's spending.

Harrah's has been running several ads recently. Some directly promote a casino. One, however, presents Harrah's as a good corporate neighbor but never specifically advocates for the casino. It was not clear if those ads were included in the filing.

Other major expenses for Harrah's included $63,900 to pollster Peter D. Hart and $28,285 for the monthly salary and benefits of nine campaign employees.

While Rhode Islanders for Jobs and Tax Relief lists 124 member companies, all of its financing through last month came from Harrah's.

"Not a single penny of their contributions comes from a Rhode Island citizen or business," said Timothy Costa, executive director of the anti-casino group, Save Our State.

Save Our State was not yet required to file its disclosure form, Costa said.

Groups advocating for or against the casino only have to report their expenses -- and source of income -- after spending $1,000. Because of the way the filing system is set up, there can be a significant delay in when the reports are filed. Save Our State's first report is due Sept. 7, Costa said.

Asked how much SOS has spent, Costa said, "We will disclose that as required by law."

"I would say this is a David and Goliath match," he added. "Clearly, when you run against the largest gambling company in the world you are in for a real fight."

"It appears Harrah's will spend millions upon millions to hide the truth from Rhode Island voters, and will stop at nothing to cover up their no-bid, no-competition constitutional amendment scheme," Costa added.

Eckert responded: "The Narragansett Indian Tribe and Harrah's . . . have been partners for many years. This campaign is as transparent as it can get. Our goal now is to deliver the facts and information to the public so they can make their decision."

smayerow@projo.com / (401) 277-7513

Digital extra: See the filing by Harrah's local casino backer showing how much money was spent advocating for a casino in June and July.

http://www.projo.com/extra/2006/casinovote/pdf/harrahsform.pdf

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