Casino proposal in Rhode Island clears first hurdle

The bill to allow a new gaming venue near the Massachusetts border in Tiverton was approved unanimously.

Twin River Management Group, the casino operators seeks to build the 85,000-square-foot casino hotel complex to replace its aging Newport Grand after the voters of Newport rejected a proposed expansion in 2012.

Rhode Island is expected to receive an extra US$47m to US$70m a year if the new casino is built. The bill includes a US$3m yearly guarantee for the host city and the state would pony up the cash if gambling revenues come up bust.

Casino supporters said the provision is needed because there’s still a lot of uncertainty about what’s going to happen next door in Massachusetts and whether or not there could be a competing casino.

Such a project could pose a new challenge to the nascent casino industry in Massachusetts, where the Plainridge Park Casino near the Rhode Island border initially disappointed in its efforts to keep residents here from traveling to another facility owned by Twin River in Lincoln.

Patti Doyle, spokeswoman for the casino builders, said Tiverton is the perfect spot for the project. “That share would be made up out of the state’s share of revenue,” Doyle said. “It’s a considerable increase, so we do think it’s fair they will be making more out of gaming revenue and in consideration of the fact that Twin River will pay to build and site the casino in Tiverton.”

However, Tiverton Town Councilman, Brett Pelletier questions whether a casino is a sustainable economic engine, given the increased competition caused by a proliferation of New England gambling venues. He also worries about addiction and other social ills.

The project has also faced opposittion from religious camp. Rev. William Sterrett of Amicable church hopes voters will kill the casino plan if given the chance.

So far legislators appear on track to put the decision on the ballot by the end of the week. The General Assembly is scheduled to vote this week on sending the question to voters. The legislation could go to a full vote in both chambers by the end of the week.