Projo 7 to 7 News Blog

For example, the dog owners have projected $7.5 million in state revenue losses based, in large part, on their assumption that video-slot revenue would drop by more than $5.5 million annually if gamblers were not drawn to the former Lincoln Park to see the dog races. Among their other assumptions: $337,500 in lost income taxes from the 225 kennel workers, judges, pari-mutuel clerks, concessionaires and security staff that, they say, are in danger of losing their jobs.

They have convinced key Senators, including Sen. Frank Ciccone, who doubles as the field agent for the Rhode Island Laborers District Council, that the suspension of dog-racing would cost the state $7.5 million in direct and indirect state revenue by eliminating as many as 225 jobs.

But Twin River has disputed their projections, and said no more than 40 jobs are in jeopardy. A week and a half ago, they offered to pay the dog-owners $2 million a year for three years to buy-out the remainder of their $9 million a year contract; it would have been up to the dog owners to decide whether to continue live greyhound racing under those terms. The Rhode Island Greyhound Owners Association rejected the offer.

Richard Brindle, president of the Rhode Island Greyhound Owners Association, said: "We are not looking for a buyout, but to protect jobs. It is our priority to ensure greyhound racing continues at Twin River and that 225 employees are not forced onto the state's already packed unemployment rolls."

In the interim, the Carcieri administration -- in response to a public-document request -- resurrected a 2004 report that said dog-racing had little to no impact on the state's take from the 4,752 video-slots that are a big cash-maker at Twin River. And the Department of Business Regulation made public the names and home addresses of the 253 dog-owners at Twin River, in response to another records request.

Only three dozen of the 253 dog owners live in Rhode Island. Others live as near and far as Fall River, Ma., Waterbury, Ct, Sarasota, Fla., Wichita, Ks., Waco, Tx., Tulsa, Ok., Longmont, Colo., Dublin, Ireland and Nassau in the Bahamas, according to the DBR listing.

The RIGOA says that the Rhode Island dog-owners "own approximately 600, or half, of the dogs.''

While chances are high the legislation will clear the Senate, its chances in the House are less certain. Asked how concerned he was about Twin River's renewed warning that, without concessions from its lenders and help from the state, its owners will have to file for bankruptcy by the end of the month, House Speaker William J. Murphy said: "We've been concerned for a year now. Obviously our focus is to make sure that that stream of income still keeps coming to Rhode Island. At the end of the day we have to make sure that that asset is protected."

Even if that means the end of dog-racing? "I think it's been a tradition. I don't like losing traditions. But at the same time is has to be feasible for the business,'' Murphy said.
And even if the bill makes it through the House, Republican Governor Carcieri hasleft little doubt where he stands on the effort to force the owners to continue a losing end of their business.

"The governor has said all along if it doesn't make sense to have dog-racing at Twin River, let's get rid of it," his spokeswoman Amy Kempe has said.

A political wrinkle: Department of Administration director Gary Sasse has taken the position the state can authorize the continuation of overnight gambling without legislation. But doing so would not provide the additional revenue the legislation promises Lincoln - whose Senators include Senate Majority Leader Daniel Connors - from the overnight gambling. It could not immediately be determined how much money was at stake. Neither Sasse nor the state Lottery immediately responded to inquiries.

The gambling venue, with 12 greyhound kennels, an estimated 1,200 dogs and 4,751 video slots, is owned by a subsidiary of BLB Investors, which bought the Lincoln Park dog track in 2005, and then embarked on a $225-million renovation and expansion.

The partners include Kerzner International Limited, Starwood Capital Group and Waterford Group LLC. Since defaulting on the half-billion dollars in loans in March 2008, the owners have been struggling to keep their lenders and creditors at bay.

As the vote neared on the Ciccone bill to require Twin River to complete the racing season, a spokeswoman for the owners issued this statement: "An important component of our ability to restructure our balance sheet is eliminating the roughly $10 million annual subsidy we incur on behalf of the RIGOA. Passage of Thursday's legislation clearly makes it more difficult for BLB to do just that.

"When we announced the suspension of dog racing at Twin River several weeks ago, we did so with heavy hearts. While dog racing was never a profitable endeavor, we value the legacy of greyhound racing in Rhode Island and the diversity of gaming options we are able to offer our patrons. But, like so many businesses today, we are forced to make very difficult - -yet highly necessary -- financial decisions. This was one of them."