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Harrah's Offers $100 Million for Rhode Island License

PROVIDENCE, Rhode Island – As reported by the Providence Journal: "Promoters of the proposed West Warwick casino sweetened the pot yesterday, offering to pay the state $100 million -- over 10 years -- for the license to own and operate Rhode Island's first 24-hour casino, with blackjack, roulette and other draws unavailable in Rhode Island today.

"During the first State House hearing this year on their casino proposal, the Narragansett Indians and their Las Vegas-based backers also increased the taxation rate they said they would be willing to pay if the casino far exceeded their current expectations.

"They also offered to guarantee the state gets at least as much -- the first year or so the casino is open -- as the $250-million-plus it might otherwise get from the fast-growing video-gambling business at Lincoln Park and Newport Grand.

"…In return for these offers and promises, [Harrah's CEO and president Gary W. Loveman] asked for a 20-year tax-rate freeze and the chance to put a specific casino proposal on the November statewide ballot.

"…He also tried to wow lawmakers with promises of a potential $114 million in new state gambling revenue the first year the casino opens, a potential $121.3 million the second year and $128.2 million the next, minus whatever bite the casino takes out of the state's current gambling revenue from the Lincoln greyhound racetrack, Newport Grand and the Lottery.

"He also disclosed for the first time Harrah's deal with the tribe: 7.5 percent of revenues after payment of taxes, license fees and the like -- an initial $20 million…"

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