08:55 AM EST on Thursday, January 24, 2008

By Katie Mulvaney

Journal Staff Writer

CHARLESTOWN — The Narragansett Indian Tribe yesterday used Governor Carcieri’s grim State of the State address to launch its latest casino plans, saying a gambling venture on its land would give Rhode Island a badly needed financial boost.

The tribe plans to ask state leaders this week to support its efforts to persuade Congress to repeal a law that requires the Narragansetts to seek statewide voter approval for high-stakes gambling on its 1,800 acres, Chief Sachem Matthew Thomas said. If the law is rescinded, the tribe could immediately forge ahead with a destination casino, and its backers would promptly reward the state with a cash payment, said Thomas.

“We’re looking to help the state immediately,” he said.

He would not specify how much the initial payment would be, but promised that the establishment would hire only Rhode Islanders for the estimated 3,500 jobs and buy local goods and supplies from Rhode Island businesses.

“We’ll put it in writing,” he said. “The reality is we need a lot of jobs in this state.”

The tribe will send letters seeking support to Governor Carcieri, House Speaker William J. Murphy and Senate President Joseph Montalbano by the end of the week.

But the governor and the congressional delegation appeared unwilling to embrace the tribe’s plans yesterday. Larry Berman and Greg Pare, spokesmen for the House and Senate, respectively, did not return repeated phone calls.

Carcieri described Rhode Island as teetering at the edge of financial disaster in his address Tuesday night. The state is facing its most ominous deficit since the credit union crisis in the early 1990s — $151 million in the current year and up to $450 million in the budget year that begins July 1. State workers have been laid off and the governor plans to cut municipal aid.

This comes as the Mashpee Wampanoag tribe pursues a casino in Massachusetts with backing from Sol Kerzner and Len Wolman, principals of BLB Investors, the gambling conglomerate that owns Twin River.

The Narragansetts’ announcement is the latest step in its nearly two-decade gambling quest. Last year, it pushed plans to open a slot parlor on par with Twin River on its land after voters rejected a proposal to change the state Constitution to allow it to build a casino in West Warwick with Harrah’s Entertainment.

The tribe lobbied the congressional delegation — unsuccessfully — to overturn the Chafee amendment, a law introduced by U.S. Sen. John Chafee in 1996 that bars the tribe from federal Indian gambling privileges on its 1,800 acres. Chafee, who died in 1999, said at the time the measure closed a loophole, but critics charge that it strips the tribe of its rights.

Thomas said the tribe’s new proposal would save the state from being forced to seek a constitutional amendment to expand gambling at Twin River, as floated in recent months over local opposition. Sixty-five percent of Lincoln voters opposed allowing 24-hour gambling at Twin River, and 60 percent voted against allowing the facility to become a full-fledged casino in a special referendum last fall.

The Narragansetts would construct a casino that would be competitive with Foxwoods Resort Casino, Mohegan Sun and any built in Massachusetts, Thomas said. It would be set on about 120 acres off Route 2 that the tribe cleared for a high-stakes bingo hall before the Chafee amendment passed.

“We believe they should take a good look at this,” he said. “Hopefully, the leaders of Rhode Island will work with us.”

The tribe does not have the governor’s support.

“It’s not clear in what way a casino would help the state budget,” said Jeff Neal, Carcieri’s spokesman. A private casino would only draw business away from Twin River and Newport Grand, both of which pay the state roughly 60 percent of their slot revenue, he said.

Asked why the state wouldn’t work with the tribe to preempt the Mashpee Wampanoags’ gaming plans, Neal said it was too early to predict what would happen in Massachusetts.

As for the upfront payment being offered by the Narragansetts, Neal said a main reason for Rhode Island’s financial troubles is state lawmakers’ reliance on one-time revenue to mask problems. “The solution is to decrease spending so it matches underlying revenue,” he said.

Further, Neal said, the Chafee amendment merely codifies the agreement the tribe and the state reached when the Narragansetts got their land in 1978. The tribe agreed to abide by state laws on the 1,800 acres, including gambling laws, he said.

The position of the state’s congressional delegation also has not shifted in the past year.

Once a supporter of the tribe’s efforts to overturn the Chafee amendment, U.S. Rep. Patrick J. Kennedy has retreated from that stance, saying through his spokeswoman that the Narragansetts would need the support of the full delegation.

That seems unlikely since Senators Sheldon Whitehouse and Jack Reed and Rep. James R. Langevin yesterday repeated their opposition to changing the Chafee amendment.

In addition, Langevin opposes any expansion of gambling in Rhode Island, said his spokeswoman Joy Fox.

The tribe did draw support from at least one lawmaker: Senate Finance Chairman Stephen Alves.

“I’ve always felt the Chafee amendment is patently unfair,” he said. “I think they have the right to be treated like every other tribe.”

He was less sure the tribe’s casino plans would cure the state’s financial woes, particularly since they remain conceptual.

“The devil is in the details,” he said.

kmulvane@projo.com