Russell Moore: Gambling is an Economic Development
Monday, December 02, 2013
It's fitting as the Christmas Season is begins, our neighbors to the north are considering handing Rhode Island the best gift we could ask for from them--the repeal of their casino law!
To the ire of many Bay Staters, the Massachusetts state legislature passed, and Governor Deval Patrick signed into law, a bill allowing three casinos and one slot parlor to be built up in 2011. It was very bad news for Rhode Island.
Studies have shown that somewhere around 40 percent of all Lincoln's Twin River patrons are from Massachusetts. The fact that Massachusetts was looking to get into the casino business in a big way may have irked some Massachusetts residents, but it also put a rightful scare into Rhode Island's leaders.
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Here's why. It's no secret that the state of Rhode Island relies heavily on gambling. Love it or hate it, gambling revenue isn't used for one-time projects or luxuries in Rhode Island. The gaming revenue is used to balance the budget and pay for necessary social services and pay our state workers.
To combat the expected drop in revenue that would occur once the Massachusetts casinos and slot parlor open, the state did smart move, it sought to approve table games at Twin River and Newport Grand. The state voters overwhelmingly went along with the proposal for table games at both, and the Lincoln residents did as well. The Newport residents, however, much to the dismay of gamblers and most of the state's residents, decided that they could very well do without having table games at Newport Grand.
Would Mass. Voters just say no?
That's precisely what may happen in Massachusetts. The state of Massachusetts, unlike Rhode Island, still has the Athenian tradition of direct democracy in place--otherwise known as voter initiative. That means a group of citizens can organize and collect a certain number of signatures--in their case, 90,000. That's precisely what happened.
These citizens have placed the wheels in motion to put a question on the ballot that would repeal the casino law that the Massachusetts legislature passed in 2011. There is a bump in the road, however, as Massachusetts Attorney General Martha Coakley has argued that the fees paid by the companies that applied for the casino licenses represent a contract with the state. Contracts cannot be superseded by voter referendum.
But the attorney general's argument is no sure thing and some legal experts believe that the voter initiative to repeal the casino bill will go forth. This should be sweet music to the ears of Rhode Island citizens. It would mean the state would be able to continue to capture its gaming revenues.
And none can deny how much we need our gaming revenues. In the previous fiscal year, the state raked in roughly $320 million in revenue from video slot terminals alone. The addition of table games at Twin River haven't yet been in operation for a full year, but all the indications and reports show that table games will be a financial boon to Rhode Island. So much so, in fact, that the company that owns Twin River has decided to add additional table games.
Expand gaming further
It's my contention that Rhode Islanders should do everything possible---even if that means just pray that Massachusetts voters repeal their casino law.
It's very well possible, given recent history, that that may very well happen should the voter initiative go before voters. After all, Massachusetts voters in East Boston, Palmer, and Milford all rejected proposals to build casinos in those communities, despite the fact that supporters outspent casino opponents by large margins.
This would not only protect the current gaming revenue the state of Rhode Island is receiving, but it would open the door for the state to capture more.
Are we in?
There's an old saying about commerce--either you're in a certain business, or you're not. In other words: go big, or go home.
That's why former Governor Donald Carcieri always irked me with his half-pregnant attitude towards gaming. The former Governor always argued that he was in favor of protecting the revenue from the gambling we already had when he took office, but didn't want any additional forms of gambling. What was perhaps most illogical about the position was the fact that video lottery terminals (aka slots) are considered the "crack cocaine" of gambling. In other words, they're the most addictive, and therefore most dangerous form.
His illogical position set us back at least 5 years. In reality, gambling is a form of economic development that Rhode Island was, and in a way, still is in a unique position to capitalize on. Anyone who thinks differently apparently has never been to Las Vegas, Nevada.
When the state is involved in gambling it makes sure anyone who gambles is an adult. And adults have the freewill and intellect to make their own choices. And that freewill should be respected. Gambling takes place in the Bible and will take place regardless of whether or not its legal. So its best for all parties involved if it is regulated and taxed.
Time to go even bigger
What the state should be doing, is precisely the opposite of what Governor Carcieri recommended. Rhode Island should start being creative in looking for ways to expand gambling.
The state should consider proposals to make sports betting legal in Rhode Island. That move would bring in sports betters from all over the region to place bets on college and professional sports. It would help our tourism industry in ways that haven't even yet been considered.
Further, no one can deny how much the game of poker has boomed in the last decade. Given the fact that Twin River has made a business decision to not offer poker, the state of Rhode Island could open a few poker rooms throughout the state of Rhode Island. It would provide more jobs and tax revenues.
And whatever happened to Governor Lincoln Chafee's horse racing track that he was advocating for several years ago. Like so many other proposals, that seems to have simply fallen by the wayside. Now that Building 19 is closing, why not consider reopening a small version of Narragansett Park in my hometown of Pawtucket?
The state legislature made a wise and prudent move by expanding our gaming economy. It's time to double-down.
A native Rhode Islander, Russell J. Moore is a graduate of Providence College and St. Raphael Academy. He worked as a news reporter for 7 years (2004-2010), 5 of which with The Warwick Beacon, focusing on government. He continues to keep a close eye on the inner workings of Rhode Islands state and local governments.
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