Wednesday, June 09, 2004
Copyright © Las Vegas Review-Journal

Harrah's may bid more for casino

Lawmakers seek higher licensing fee

Jan Jones Harrah's exec says company willing to make some changes to offer

PROVIDENCE, R.I. -- Harrah's Entertainment is willing to sweeten its offer for the right to build a casino in West Warwick, a company vice president said on Tuesday.

Last week, House Democratic leaders told the Las Vegas-based company they wanted a higher tax rate and a better offer for the state than the $100 million dollar licensing fee that had been proposed.

Harrah's Vice President Jan Jones told The Associated Press the company would consider a higher tax rate.

"If they think the $100 million (fee) is going to go to $200 million, that's not going to happen," said Jones. "But we might be able to look at a different tax rate," she said. "We can change some of the numbers around, but we can't do everything" lawmakers asked for.

Harrah's has offered to pay the licensing fee over 10 years and a gambling tax of between 25 percent and 35 percent.

The company wants to build a resort-style casino with the Narragansett Indian Tribe. The project needs voter approval. Lawmakers must agree to put the project on the ballot in November.

The company says a casino would create more than 3,200 jobs, and generate $150 million in state and local taxes in its first year of operation.

House Finance Chairman Steven Costantino, D-Providence, told Harrah's officials he wants a higher tax rate. He'd also like either a higher licensing fee or quicker payment of it.

Costantino said on Tuesday he hasn't seen a new offer from Harrah's.

"What I am interested in is (improving) the rate of return to the state over the long term," he said.

West Warwick stands to collect about $14 million, including taxes, in the casino's first year. The tribe would collect about $20 million.