Rhode Island's Arms Race

Casinos Have Spent Nearly $1 Million on Table Games in Rhode Island
Monday, August 06, 2012
Dan McGowan, GoLocalProv News Editor

Twin River and Newport Grand have combined to spend more than $897,000 since the beginning of March in their efforts to convince Rhode Islanders to vote to allow tables games at the state’s two casinos this November, according to a review a campaign finance reports.

The campaigns to move to full-fledged casino gaming have been more costly than any political campaign in the state this year, including the re-election efforts of Congressman David Cicilline, who had spent just over $770,000 as of June 30.

UTGR Inc., Twin River’s parent company, has spent $825,993.67 while the much smaller Newport Grand has spent $71,639.00, with the majority of the funds going toward advertising and consulting fees. Records show Lincoln-based Twin River spent $173,450 on television commercials in July and another $49,240 on the radio. The RDW Group in Providence is running the Twin River campaign.

Twin River’s political action committee (PAC) also contributed $7,700 to more than 20 lawmakers, including every member of House and Senate leadership, since the beginning of the year, records show.

Meanwhile, Newport Grand’s more modest campaign has paid Providence public relations firm Duffy and Shanley more than $20,000 and the slot parlor’s August filing shows more than $8,000 going to Fleming & Associates, one of the state’s top polling services.

“The education campaign isn't just about the paid media,” said Twin River spokesperson Patti Doyle. “We've spent the summer months employing a street team of college students to be visible with education materials at a host of community events throughout the state.”

Threat from the Bay State

Doyle said Twin River board chairman John Taylor has also attended Rotary and Chamber of Commerce meetings from across the state, talking about the importance of approving the table game question in order to bring jobs to Rhode Island. [Where have we heard that before?]

She said the campaign has also “been really active building an online community via our website where you can register to volunteer, and via Facebook and Twitter.”

But that doesn’t mean the two casinos aren’t going to continue spending hundreds of thousands of dollars to ensure voters support the ballot referendum. In 2006, Las Vegas-based Harrah’s Entertainment spent more than $12 million in an attempt to open a casino in West Warwick, but voters overwhelmingly shot down the proposal.

Now with Massachusetts committed to building three resort-style casinos and a slot parlor over the next decade, supporters of full-fledged gaming say the state could face economic peril if the referendum fails.

Gambling related revenue is the state’s third-largest source of income, at more than $300 million each year and Twin River has provided the state with over $2.5 billion since 1992. A report issued earlier this year by the Rhode Island Public Expenditure Council (RIPEC) suggested that table games would benefit Rhode Island, but it also noted that the state will not be able to depnd on gambling income as much once the casinos are built in the Bay State.

“The advent of casino gaming in the commonwealth of Massachusetts – under any scenario – will likely negatively impact both revenues for the casino operators in Rhode Island, and the state of Rhode Island itself,” the RIPEC report stated. “While it appears that the opening of casinos in Massachusetts may occur later than originally anticipated, they will open in the next few years, and that Twin River, Newport Grand and the state will all see revenues decline. Allowing Twin River and Newport Grand to operate table games will offset some of these projected revenue losses; however, it is also clear that the state can no longer rely on gaming revenues to support the same share of government services once casinos open in Massachusetts.”

During a rally to kick off Twin River’s effort (known as Jobs in RI) last spring, Greater Providence Chamber of Commerce President Laurie White predicted the expansion would provide a boost in economic impact to the state.

“Twin River is an important asset to Rhode Island,” White said. “It is the third largest source of revenue for the state, providing $270 million to the general fund last year for vital services. The addition of table games will not only provide a much need boost in employment and corresponding economic impact, it will allow Twin River the ability to remain competitive at a time when it’s needed most. There is strong support among business, labor and community leaders here today because we recognize how vital it is that we approve the referendum on November 6th.”

State Senate Candidate Opposed

The two referendums will need to be supported by the majority of voters statewide as well as the town of Lincoln (for Twin River) and Newport (for Newport Grand) in November. It is possible for only one of the referendums to earn support.

But not everyone is supporting the effort to expand to table games, particularly in Lincoln. District 17 State Senate candidate John Cullen, a Democrat, is urging voters to oppose the plan. On his campaign website, the phrase “Vote No Casino” is featured prominently. If Cullen wins his primary, he’ll take on incumbent Edward O’Neill, an Independent.

“I oppose creating a full-fledged Rhode Island Casino because gambling is not genuine economic development and it cannibalizes local businesses,” Cullen’s website states. “I encourage all District 17 voters to vote NO on the November casino referendum. I especially encourage all Lincoln voters to vote NO.”

Cullen contends that Lincoln voters have long been against expansion at Twin River. He is joined by former Lincoln Town Council President Dean Lees Jr. in opposition to the proposal. Both gentlemen contend that the town will not benefit from table games.

Lees has said he is concerned with language in the casino legislation passed by the General Assembly earlier this year that says the town will only receive one percent of table game revenues for four years and that is only if revenues from Video Lottery Terminals (VLTs) decline.

In a June interview with GoLocalProv, Lees warned that after the four years, Lincoln could face an economic crisis.

“It’s almost like you’re getting four years to live,” Lees said.


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