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Study: Rhode Island Casino Would Generate $127.5 Million

7 May 2004

RHODE ISLAND – As reported by the Providence Journal: "With 3,000 slot machines, 100 table games and a 500-room hotel, a proposed West Warwick casino could produce $127.5 million a year in gambling revenue for the State of Rhode Island.

"And a study prepared for the Senate Democratic leadership suggests the casino the Narragansett Indians are seeking to build, with backing from Harrah's Entertainment, could bring in that bounty without seriously damaging the flush video-gambling business at Newport Grand and Lincoln Park.

"But one senator described himself as 'befuddled' after a briefing yesterday by Clyde W. Barrow, the author of the University of Massachusetts-Dartmouth study. Others didn't find the answers they sought.

"The 200-page economic and fiscal impact study gave no downside to opening Rhode Island's first casino -- with craps, blackjack, roulette and other table games.

"The report assumes a large increase in the propensity of Rhode Island and Massachusetts residents to gamble. It also assumes the new casino would draw gamblers away from the Foxwoods and Mohegan Sun resort casinos in Connecticut.

"But questions at yesterday's briefing focused mostly on what was missing from the $34,700 report.

"…Sen. J. Michael Lenihan, D-East Greenwich, said he could find no analysis of 'the impact on surrounding businesses.' Sen. Leonidas Raptakis, D-Coventry, asked Barrow the extent to which he had looked at business failures, bankruptcies and foreclosures.

"…Sen. James Sheehan, D-North Kingstown, and Sen. Rhoda Perry, D-Providence, asked why he did not also consider 'social-welfare costs.'

"…But Harrah's lobbyist Terence M. Fracassa said the report 'confirms what Harrah's message has been all along, that Rhode Islanders are spending a lot of discretionary income at Foxwoods and Mohegan Sun,' and what Harrah's wants is 'to bring those people back to Rhode Island.'…"

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