Where is Competition Now?

Last September, the people of Rhode Island voted against an amendment to their constitution that would have allowed Harrah’s and the Narragansett Indian tribe to bring in a casino. They followed their leaders – political and civil – as well as various groups, including their hospitality industry, and voted against the casino. However, what they did not know was that these groups were being funded by the same people who bring you the Mohegan Sun in Connecticut. Afraid of a little competition, they convinced Rhode Islanders to vote against the casino, so they get to keep all the slot machine revenue for themselves.

However, Massachusetts just announced that they are going to start taking a good, hard look at slot machines and gambling, and see if it might be something that could serve them well. They are looking at record deficits in their state budget, and slot machines could really help them out. However, where is the help now that Rhode Island really needs it? If Massachusetts brings in slot machines in their race tracks, or if they bring in a casino into New Bedford or somewhere else, the effect that it will have on Rhode Island is too big to even measure. Some say that Rhode Island would lose somewhere around $100 million a year in slot machine revenues.

If Massachusetts brings in slot machines Rhode Islanders will be looking at increased taxes as the casino industry will no longer be able to make up for the shortfalls in the state’s budget. Now both Lincoln Park and Newport Grande are saying that since they have been bringing in less money than they did before, which means even less money for the state. The state already has a $105.1 million shortfall, with a projected $254 million shortfall next year – so they need every dollar they can get their hands on.

So the argument against the Narragansett Tribe’s casino was that it would take food from the local restaurants, and entertainment from the Performing Arts Center – but both Lincoln Park and Newport Grande are going to start giving away free food and drinks, and build new entertainment complexes that are going to do the same thing they voted the other one down for. Where are the arguing voices now? Where are the people sticking up for the PPAC and the local businesses? Not a word has been spoken – seems that those voices are more concerned with the money the state can get from the new changes as opposed to worrying about the little guy.

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