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Rhode Island Gambling Commission: Casino's Fate Depends on State's Cut19 September 2002PROVIDENCE, Rhode Island – As reported by the Kent County Times: "The distribution of money to the state from a proposed gaming facility will have to be competitive with the state's two other betting establishments and will weigh heavily in the final judgment laid forth by the Rhode Island Special House Commission to Study Gambling to voters and the General Assembly. "While former backers of the Narragansett Indian Tribe stated that in the past a casino would bring millions of dollars into West Warwick and the state, future investors seemingly must follow suit in breaking down their revenues as favorably as Lincoln Greyhound Park and Newport Jai Lai. "…In addressing a question brought forth by Rep. Paul Crowley (D-Dist.100) in a previous meeting, Gary Ciminero the chief economist in the House of Representatives Policy Office brought attention to the significant revenue share that the state receives from the two facilities in comparison to other states' distribution portion. "At Lincoln Greyhound Park the state receives 48 percent of the net revenue for racetrack video gaming, while the park itself pulls in 30 percent. This is sharp difference from other states including West Virginia where racetracks receive 47 percent and the state gets 34 percent, Delaware's tracks see 49 percent go to themselves while 34 percent is collected by the state, and in Iowa where 65 percent of the total net revenue stays in-house and 34 percent is distributed to the state. "…In February Boyd Gaming officials declared that the state would receive 52.9 percent of the casino profits, or an estimated $110.9 million each year in order to compete with the money output by the state's two other gaming facilities. Currently Lincoln offers 51 percent of their take, while Newport provides 57 percent." |