Governor Doesn’t Want to Gamble with Casino Expansion

Governor Doesn’t Want to Gamble with Casino Expansion

A plan to expand gaming at Twin River Casino and Newport Grand has been vetoed by Gov. Don Carcieri over concerns that the state would not know how much it would be making out of the deal.

Both casinos—which currently allow only slot machines and video lottery gambling—generate nearly $300 million in revenue for the state.

Rep. William San Bento, D-Pawtucket, North Providence, has said that gaming needs to be expanded so Rhode Island can compete with two new casino resorts approved in Massachusetts.

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His bill would have allowed any kind of table game played with cards, dice, or some other means—including poker, roulette, and blackjack.

But Carcieri said the state didn’t know how much revenue it would be getting out of the deal—if any at all. “I cannot support such initiatives when critical financial information is unknown,” he said in his veto message.

The state currently splits the revenues with Twin River Casino and Newport Grand, taking 61 percent of what they make. This year, that amounted to $291 million, which was nearly 10 percent of the entire state budget—the third highest revenue source.

Carcieri said the split between the state’s share and the casino’s share was not spelled out the law—an irresponsible omission, he said, that he compared to buying a house without first determining the price.

The bill would have put the question to Rhode Island voters, without requiring the formal input of the local town or city council—another reason that Carcieri said he was vetoing the bill.

“In a state with a robust history of local autonomy and home charter rules, I believe it is inappropriate to force a municipality to vote on a question of this importance without first garnering local support through the city or town council,” Carcieri said.