January 26, 2012

Newport Grand

By Tom Shevlin

*Please note that this post will be updated.

NEWPORT –  Saying that it's time to see where the chips fall, City Council members on Wednesday unanimously voted to ask the state General Assembly to put on the November ballot a question authorizing expanded gaming facilities at Newport Grand.

The vote, which had been expected, comes on the heels of a request by Diane Hurley, the owner of the former jai alai fronton, who cited the threat posed by the the development of casinos in Massachusetts as reason for her decision to make the move toward full-scale casino gaming.

"We have examined very carefully what options may be available to Newport Grand in order to survive and continue to contribute to the City of Newport and the State of Rhode Island in this environment," Hurley wrote in a letter to city councilors earlier this month. "We have concluded that adding table games to our gaming offering presents the best possible option for Newport Grand to continue to be a significant local employer and tax revenue generator."

She reiterated that point on Wednesday before the council, saying that in order to protect its $7 million payroll and the $1 million paid to the city in property taxes and slot revenue, "it's important that we make our case to the City of Newport and the state."

Based on previous votes, that could be a hard case to make.

Under state law, the General Assembly may approve expanded gambling only if approved by a statewide referendum. Host communities would then also have to approve the expansion before a casino is built or table games added to an existing venue.

The last time Newporters had a chance to weigh in on a gambling referendum was in 2006 when a proposal was being pushed to build a Narragansett Indian-backed casino in West Warwick.

Statewide, voters soundly rejected the plan, by a vote of 63-37 percent.

However, in Newport, the margin of defeat was even greater; residents here voted 75.5-24.5 percent against the plan. If that's any measure of the city's sentiment to further embracing gaming revenue, then the proponents may have a tough battle ahead of them.

Hurley, who up until recently has eschewed from advocated for adding table games to the property, asserted in her Jan. 11 letter that "Newport Grand has always felt that our best business strategy in Newport is to complement, not compete. We are uniquely situated in a destination resort community. None of our present and potential competitors can make such a claim."

January 26, 2012

Latest Comments

  • THE END OF CIVIC VIRTUE

    There were many, many reasons, (cited by Gibbon and Toynbee), why the Roman Empire declined, Economic devastation, civic desperation and apathy were considerable and played a large role. It looks like Newport will go the way of Atlantic City. I'm sure all the retired folks around here will enjoy losing their paychecks playing Blackjack (or getting robbed by junkies and crackheads while they're out of the house). Or murdered. But on the bright side, there'll be more prostitutes! Thanks, Jai-Alai!

    From a Forbes article, "Atlantic City Is Dangerous And Depraved" (May 5, 2005):

    But the idea behind Atlantic City wasn't to boost the take of a few hotels; it was to spur development and employment more generally.

    This idea has been stopped in its tracks.

    Even among the casinos, employment is declining. In 2000, the casinos employed 47,426. In 2004, the last year for which data are available, the number dipped to 45,501, the CCC says. It's likely that the casino employment total increased a bit with the opening of the Borgata, but overall it's been pretty flat.

    The wider view is bleaker still. Employment overall in the city, after rising in the 1990s, has fallen from 164,100 in 2000 to 149,500 in 2004, a 9% drop, according to the U.S. Bureau of Labor Statistics. Even what the bureau classifies as "leisure and hospitality" employment is down sharply, from 70,300 to 57,400.

    Gambling, oddly enough, is becoming more popular, with "gross gambling revenue" in the U.S. increasing to $72.9 billion from $58.2 billion between 1999 and 2004, according to the American Gaming Association. But just a small portion of the increase has gone to casinos, and none of the increase has found its way to the Jersey shore, Trump's efforts notwithstanding. Although gambling hasn't done much for Atlantic City, others are racing for a slice of its supposed glory, so Atlantic City itself has been running in place.

    Crime in the city is about three times the U.S. average, and the murder rate is twice the national average, according to FBI data.

    Posted by FRED SULLIVAN January 26, 2012 14:07:36

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