Last month Harrah’s Entertainment reportedly spent over US$2.7 million in its efforts to convince the voters of Rhode Island that a proposed casino project would be a good thing for the state. Yesterday a federal judge declined to block the casino question from the November ballot, ruling that no irreparable harm would result from moving forward. As with most cases involving legislators and gaming, this by no means ensures an easy passage for Harrah’s and the Narragansett Indian Tribe.

US District Judge William E Smith stated that the referendum raised serious constitutional questions although he was not prepared to say the proposed amendment was actually unconstitutional. Even if the Rhode Island voters approve a constitutional amendment to allow Harrah’s to build a West Warwick casino with the Narragansett, it is likely to be challenged through the courts. The judge considered that a constitutional challenge would have a substantial chance of success but added that having the question on the ballot might improve elector turnout.

The anti casino lobby Save Our State (SOS) is mounting a campaign of its own, describing Harrah’s advertising efforts as a cover-up for a no-bid, no-competition constitutional amendment scheme. Rhode Island Legislators previously approved a casino question two years ago but the state Supreme Court ruled it unconstitutional because, according to the present state Constitution, any casino must be state operated. This led to the attempt by Harrah’s and the Narragansett to get the constitutional amendment onto this November’s ballot.

Although the casino question will remain on the ballot, the federal case filed by the Town of Johnston and developer David H Nunes will continue. It claims that the Equal Protection Clause of the 14th Amendment is breached by granting Harrah’s and the Narragansett a monopoly and unlawful racial or ethnic preference. Many voters are known to be sympathetic to the tribe as it has suffered much discrimination in the past. At present its only income is a federal grant of around US$5 million annually. If the West Warwick casino project were to go ahead, tribal income would rise to an estimated US$20 million after three years, even at the relatively low 5% of revenue after taxes agreed with Harrah’s. (E-08.09.06)

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