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Rhode Island Gaming at Newport Grand, Question 1 (2014)

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Question 1
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TypeLegislatively referred state statute
TopicGambling
StatusDefeated Defeatedd
2014 measures
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November 4
Question 1 Defeatedd
Question 2 Approveda
Question 3 Defeatedd
Question 4 Approveda
Question 5 Approveda
Question 6 Approveda
Question 7 Approveda
Polls

The Rhode Island Gaming at Newport Grand, Question 1 was on the November 4, 2014 ballot in Rhode Island as a legislatively referred state statute, where it was defeated. The measure would have authorized Newport Grand to add state-operated casino gaming, such as table games, to the types of gambling it offered at the time.[1]

Since Question 1 was a legislatively referred state statute, it needed approval from the state's voters. However, Section 22 of Article VI of the Rhode Island Constitution also required that the measure be voted upon by "the majority of those electors voting in a referendum in the municipality in which the proposed gambling would be allowed." While Question 1 passed at the state-level, it failed in the city of Newport, which is where Newport Grand is located, as of 2014. Therefore, Question 1 was defeated.[2]

The measure was sponsored in the Rhode Island General Assembly by Representative Marvin Abney (D-73) and Senate Majority Whip Maryellen Goodwin (D-1) as House Bill 8294.[3]

Election results

Question 1 was simultaneously on the ballot as a statewide measure and as a local measure in Newport. The measure required approval from both the state's voters and Newport's voters. While Rhode Island's total voters approved Question 1, a majority of Newport's voters cast "no" votes. Therefore, Question 1 was defeated.[4]

Statewide election results

Below are the official, certified election results:

 Rhode Island Question 1
ResultVotesPercentage
Approveda Yes 172,139 56.3%
No133,53943.7%

Election results via: Rhode Island Board of Elections

Local election results

Below are the official, certified election results:

 Newport Question 1
ResultVotesPercentage
Defeatedd No4,35257.0%
Yes 3,279 43.0%

Election results via: Rhode Island Board of Elections

Text of measure

Ballot title

The ballot question appeared as follows:[1]

“ Shall an act be approved which would authorize the facility known as “Newport Grand” in the city of Newport to add state-operated casino gaming, such as table games, to the types of gambling it offers only and exclusively at the facility located at 150 Admiral Kalbfus Road, Newport?

[5]

”

Constitutional changes

If Question 1 had passed, together with Question 2, it would have amended Section 22 of Article VI of the Rhode Island Constitution.[1] The full text of HB 8294 and a list of constitutional changes that were to be implemented if the measure was approved can be found here.[6]

Support

RIQ12014.png

The group supporting Question 1 was Jobs for Newport. The group advocated for a "yes" vote on Question 1 and Question 2.[7]

Arguments

According the Jobs for Newport website, Question 1 would have had the following positive impacts:[7]

  • More revenue to Newport: Guarantees Newport $9 million in revenue over six years
  • Job creation and retention: Saves 175 jobs and creates a minimum of 200 new jobs.
  • No changes in location: Keeps Newport Grand only at its current location.

HB 8294 "Yes" votes

The following members of the Rhode Island General Assembly voted in favor of placing this measure on the ballot.[8][9]

Note: A yes vote on HB 8294 merely referred the question to voters and did not necessarily mean these legislators approved of the stipulations laid out in Question 1.

Senate

House

Campaign contributions

Total campaign cash Campaign Finance Ballotpedia.png
as of November 7, 2014
Category:Ballot measure endorsements Support: $937,251
Circle thumbs down.png Opposition: $207,680

As of November 7, 2014, two campaign organizations supporting Question 1 had received an aggregate total of $937,251 in contributions.[10]

PAC info:

PAC/Ballot measure group Amount raised Amount spent
Jobs for Newport LLC $934,983 $934,983
Newport Grand LLC $2,268 $2,268
Total $937,251 $937,251

Opposition

RIQ1No2014.png

The group opposing Question 1 was Citizens Concerned About Casino Gambling (CCACG). The group advocated for a "no" vote on Question 1 and Question 2.[11]

Arguments

According the CCACG website, Question 1 would have had the following negative impacts:[11]

  • Crushes Newport's Small Business & Tourism Economy
  • Masks Industry Wide Decline
  • Deepens Government Dependence on a Declining Industry
  • Exploits Newport's Navy Base
  • Threatens The Maritime Innovation Hub

HB 8294 "No" votes

The following members of the Rhode Island General Assembly voted against placing this measure on the ballot.[9][8]

Note: A no vote on HB 8294 meant that a legislator did not want to refer the question to voters and did not necessarily mean these legislators disapproved of the stipulations laid out in Question 1.

Senate

House

Campaign contributions

As of November 6, 2014, one campaign organization opposing Question 1 had received an aggregate total of $207,680 in contributions.[10]

PAC info:

PAC/Ballot measure group Amount raised Amount spent
Citizens Concerned About Casino Gambling $207,680 $206,096
Total $207,680 $206,096

Reports and analyses

Published in Edward M. Mazze's ECONOMIC IMPACT STUDY OF THE NEWPORT ENTERTAINMENT CENTER

Support

According to a report by Edward M. Mazze, Ph.D., Consultant and University Professor of Business Administration at the University of Rhode Island, which was published on the Jobs for Newport website, approving Question 1 would have been financially beneficial for both the city and the state:[7]

“ There are two economic impacts for Rhode Island that will result from investing $40 million in new construction at Newport Grand. The first is from construction expenditures. The second is from long-term continuing operations of the new entertainment complex. The economic impact from these activities will also generate revenue to the state, the City of Newport and other cities and towns from increased gaming revenue and other taxes. Once the $40 million in new construction is completed, the City of Newport will receive a minimum of $1.5 million per year for six years under state law. This will mean guaranteed revenue of at least $9 million to the City of Newport - over $6 million more than they would have received under the current agreement. Presently, the City of Newport receives approximately $450,000 annually or 1.01% of net terminal income from the existing VLT machines. Under the new agreement, the percentage increases to 1.45%, and the revenue will increase by $200,000 annually to approximately $650,000 in fiscal year 2015, the current year.[5] ”
—Edward M. Mazze, ECONOMIC IMPACT STUDY OF THE NEWPORT ENTERTAINMENT CENTER

The complete report can be read here.

Opposition

A report entitled "Gambling Expansion – 5 Considerations," which was published on the CCACG website, detailed why opponents believed voters should defeat Question 1:[11]

“ Let’s start with a few facts. Newport remains a core economic driver for the State of Rhode Island. With international renown, the city by the sea continues to be a star of our state’s tourism industry. It only takes, for example, 213 visitors to support one Newport public student for one entire year of schooling. Tourism represents a steady and growing stream of revenue for the city.

An expanded casino, in any form, would only increase our reliance on failing casino revenue and damage Newport’s tourism economy for years to come by draining local tourism business. Despite the “Monte Carlo” or “European” style of the proposed casino, it is still in direct competition with neighboring regional casinos. With casinos being built ever closer to Rhode Island’s borders, it is a fact that a Newport Casino will only draw more heavily upon local clientele. This will tax local business, community wealth and the very economic engine of Newport. [...]

Unfortunately the State’s interests override Newport’s interests. The State takes 60% of the revenue, Newport gets 1% and the owners get the rest. The State controls that allocation and Newport must accept what the State gives it. In 2013, the State took $32,000,000 and Newport received $562,000. However Newport absorbed all of the expenses and risks of having a gambling facility.[5]

”
—CCACG

The complete report can be read here.

Media editorial positions

See also: Endorsements of Rhode Island ballot measures, 2014

Support

  • The Providence Journal said,
“ We urge voters on Nov. 4 to support table games at the Newport casino. (A second ballot question makes sure that the casino cannot be relocated without city approval in a referendum; that merits a yes, too.) It’s a better idea to stay competitive than to lose millions of dollars.[5] ”
—Providence Journal[12]

Lawsuits

Arnold et al. v. Mollis

Deborah Arnold, Elizabeth P. de Ramel and Charles Weishar, all residents of Newport, Rhode Island, filed a lawsuit against Question 1 in the Rhode Island Superior Court. They asked the court to remove the measure from the ballot.[13]

Arnold, de Ramel and Weishar called the question’s approval process an “unconstitutional procedure.” In 2012, Question 2, which authorized casino games at Newport Grand, was approved. Following, Newport constituents rejected the proposal in a separate vote. Question 1 of 2014 followed a different process. Rather than having one statewide measure and one local measure, the measure was simultaneously posed as a statewide and local question. The Newport Canvassing Authority was responsible for counting local results. The three residents argued that the process would confuse voters and “dilute their vote and unlawfully tilt the election in favor of approval."[13]

Furthermore, Section 22 of Article VI of the Rhode Island Constitution reads:

“ No act expanding the types of gambling which are permitted within the state or within any city or town therein or expanding the municipalities in which a particular form of gambling is authorized shall take effect until it has been approved by the majority of those electors voting in a statewide referendum and by the majority of those electors voting in a referendum in the municipality in which the proposed gambling would be allowed.[5] ”

The lawsuit largely revolved around how to interpret the constitution: does Section 22 of Article VI permit one measure to be both a statewide and local measure, or does it call for two separate ballot measures, one statewide and one local?[13]

The petitioners argued that having one versus two measures had a practical effect as well. Their document stated, "Clearly, there is a material number of Newport electors who voted only on the local referendum and passed on voting on the statewide question. The most obvious explanation is that there are Newport voters who simply do not vote on statewide ballots and restrict their attention to local candidates and issues."[13]

Path to the ballot

Rhode Island Constitution
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Articles
Preamble • I • II • III • IV • V • VI • VII • VIII • IX • X • XI • XII • XIII • XIV • XV

Question 1 was introduced into the Rhode Island Legislature as House Bill 8294. The bill was related to state affairs and government and authorized a voter referendum on the approval of state-operated casino gaming at Newport Grand. The bill was approved in the Rhode Island House of Representatives on June 21, 2014, and in the Rhode Island Senate on June 30, 2014. The governor signed the bill on July 3, 2014.[14]

House vote

June 21, 2014 House vote[9]

Rhode Island HB 8294 House Vote
ResultVotesPercentage
Approveda Yes 52 92.86%
No47.14%

Senate vote

June 30, 2014 Senate vote[8]

Rhode Island HB 8294 Senate Vote
ResultVotesPercentage
Approveda Yes 32 94.12%
No25.88%

See also

External links

Basic information

Support

Opposition

Footnotes

  1. ↑ 1.0 1.1 1.2 Rhode Island Secretary of State, "Rhode Island Voter Information Handbook 2014," accessed September 24, 2014
  2. ↑ Providence Journal, "Newport voters again say no dice to table games," November 4, 2014
  3. ↑ State of Rhode Island General Assembly, "Lawmakers approve ballot questions on gaming expansion at Newport Grand," June 21, 2014
  4. ↑ The Brown Daily Herald, "Newport rejects measure to add casino table games," November 5, 2014
  5. ↑ 5.0 5.1 5.2 5.3 5.4 Note: This text is quoted verbatim from the original source. Any inconsistencies are attributable to the original source.
  6. ↑ Rhode Island Legislature, "2014 -- H 8294 SUBSTITUTE A AS AMENDED," accessed October 18, 2014
  7. ↑ 7.0 7.1 7.2 Jobs For Newport, "Homepage," accessed October 18, 2014
  8. ↑ 8.0 8.1 8.2 Rhode Island Legislature, "Senate Vote," accessed September 24, 2014
  9. ↑ 9.0 9.1 9.2 OpenStates.org, "House Vote on HB 8294 (Jun 21, 2014)," accessed October 18, 2014
  10. ↑ 10.0 10.1 Rhode Island Board of Elections, "Other Filings," accessed December 7, 2014
  11. ↑ 11.0 11.1 11.2 Citizens Concerned About Casino Gambling, "Homepage," accessed October 18, 2014
  12. ↑ Providence Journal, "Yes to Newport casino," September 21, 2014
  13. ↑ 13.0 13.1 13.2 13.3 Providence Journal, “Lawsuit filed against state over Newport Grand casino ballot question,” September 19, 2014
  14. ↑ State of Rhode Island General Assembly, "HB 8294," accessed September 24, 2014
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