Yesterday around the United States there were mixed fortunes for gambling related issues at the ballot boxes. The decade-long campaign by the Narragansett Indian Tribe for a constitutional amendment to allow a casino in West Warwick met with a third defeat from Rhode Island’s voters. Their partner in the project, Harrah’s Entertainment, is estimated to have spent US$11 million in promoting the casino plan. Privately-owned casinos remain banned under the Rhode Island constitution.

In Indiana the pro-gambling lobby was more successful. Clark County finally voted by a large margin to allow a riverboat casino, after the issue met with defeat in referenda held in 1993 and 1995. The up turn in voter approval was attributed to increased familiarity with casino operations not far away, which had not brought with them problems such as crime and prostitution but had brought economic advantages to other districts. Unless Indiana changes its legislation to allow a 12th licence, Clark County would have to convince one of the existing riverboat casinos to sail up the Ohio River to drop anchor in that district.

In Ohio gambling was once again on the losing side. For the third time in sixteen years the citizens of Ohio rejected the expansion of gambling in their state. A plan to allow a total of 31,000 slot machines at Ohio’s seven racetracks and two stand-alone slots parlours in Cleveland was easily defeated. The defeat came despite an aggressive US$20 million advertising campaign in support of the slot machine proposal. The promise of tuition aid for college students and economic advantages did not sway the traditionally conservative Ohioans.

In Louisiana nearly two-thirds of voters approved the construction of a US$350 million casino hotel, Sugarcane Bay, by Pinnacle Entertainment. The project is expected to create around 2,000 construction jobs and 2,000 permanent jobs. The new facility will be adjacent to the company’s existing L’Auberge du Lac casino in Lake Charles and scheduled for opening in 2009. Pinnacle anticipates completing the acquisition of Harrah’s Entertainment’s gaming assets in Lake Charles later this month, and one of the related gaming licences would be used for Sugarcane Bay.

Yesterday’s election results will have a profound effect on many gambling issues. New faces in the national and state legislatures and changing state governors will bring different agendas and ideas. When the Election Day dust settles and organisations regroup, the pro and anti gambling lobbies will doubtless once more be out in force from California to Maine and from Washington State to Florida. (E-11.08.06)

© Copyright 2006 CasinoCompendium



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