House expected to override veto of legislation to extend dog racing, 24/7 hours

By JIM BARON

PROVIDENCE — As promised, Gov. Donald Carcieri vetoed legislation to require an extended greyhound racing season at Twin River.

In his veto message, Carcieri told Senate President Teresa Paiva Weed that the races are a money-loser for Twin River and that expanding the number of racing dates mandated each year could jeopardize the bankruptcy agreement hammered out among Twin River, its creditors and the state. He said the U.S. Bankruptcy Court might interpret it as an “end run around the pending bankruptcy proceedings.”
Cranston Rep. Charlene Lima said the House would likely override the governor’s veto when it reconvenes later this month. An inquiry to the Senate about an override was not answered Thursday.    
The bill would have changed the required number of racing dates at the facility from the current 125 to 200, the number that have been traditionally run annually in recent years. It also authorized Twin River to operate 24 hours a day, seven days a week (24/7).
The casino has been open 24 hours on weekends and the Sunday before holidays, but the law authorizing that expired on Tuesday. Lottery Director Gerald Aubin sent a letter to Twin River officials Wednesday extending what is called the 24/3 arrangement.
The RI Greyhound Owners Association (RIGOA) bemoaned the veto, saying through spokeswoman Jennifer Bramley: “We believe this is a sad decision made by the leader of our state whose chief priority should be the people of our state not the interests of big banks. The governor is choosing a payout over local jobs and millions of dollars in tax and fee revenue to the state. It’s absurd to say that greyhound racing is jeopardizing Twin River’s bankruptcy deal when it accounts for less than two percent of its annual revenue.”
Bramley said Carcieri’s action, “Protects the interests of big banks looking to get a payout from state taxpayers; eliminates 225 jobs while the state’s unemployment is at 12.5 percent — one of the highest in the nation; eliminates 5,000 people a week who visit the track at Twin River, and reduces millions of dollars in revenue to the state budget from VLT usage.
In his veto message, Carcieri disputed the claim that the greyhound races are responsible for 225 jobs, calling that figure “speculation.
According to the state’s licensing records,” the governor wrote, “there are fewer than half that number of individuals currently licensed and authorized to work at Twin River in positions related to dog racing. Some of those are part-time positions, some also perform functions related to simulcast wagering (which is not affected by the legislation) and some of them are kennel owners” who share part of the $9 million that Twin River pays the RIGOA. That $9 million payment, he said, “contributes to Twin River’s crippling debt.” Carcieri predicted that  the “fundamentally unsustainable” $9 million annual payment to the RIGOA “will in all likelihood be rejected by the bankruptcy court.
Bramley called the governor’s statement “just plain wrong.
She said the 225 jobs at the track “are composed of more than 80 people working in the kennels, with the majority of the workers serving in jobs including security personnel in and outside the track compound, the racing department, maintenance, cleaning crews, lead outs, judges, pari-mutuel clerks, and food workers and bartenders, among others.”
 She added that “The funds to pay for greyhound racing were provided to BLB as a transfer from the state budget, when the greyhound racing was taken out of the state budget in 2005. In fact, 1.85 percent (of the VLT take) was transferred to BLB Investors to cover the cost of pari-mutuel racing.  BLB went from 27 percent to 28.85 percent,
“Conversely,” Bramley said, “this was evident in the adjustment of Newport Grand from 27 to 26 percent when pari-mutuel gambling was eliminated from that facility.  The bottom line is that the 1.85 percent does is not BLB’s money, and it shouldn’t be the banks.”
Repeating an often-stated stand, Carcieri said, “Dog racing at Twin River is unprofitable.” He said the wagers on dog races have decreased more than 90 percent over the years that the facility has been operating VLTs.
The increase in mandated racing day “is inconsistent with the premises and predicates of the consensual restructuring agreed to by (Twin River owners) BLB, the lenders and the administration,” the veto message continued. “To the extent that the enactment of the legislation were to interfere with the completion of the restructuring agreement, the legislation could actually result in the BLB bankruptcy filing becoming a protracted, free-fall proceeding, as opposed to a consensual one.
“If that occurs,” the governor warned, “the state could incur millions of dollars in expenses to protect the state’s interest in what no doubt will be a protracted bankruptcy proceeding. In addition, the state has been advised that there could be a decrease of 10 percent or more in revenues from the facility if a free-fall bankruptcy were to occur. That is a risk the state can not afford to take.”
Lima called the veto “unfortunate,” because, “it shows a concern for the profits of the bank” over more local concerns.
“Bank of America took over Twin River in bankruptcy, not because Twin River was unprofitable, but because they had too great a debt service. By getting rid of the second and third lien holders, Bank of America is now taking over the track for $300 million in debt service. I think they got a heck of a deal.”
She said officials from Las Vegas-based Harrah’s have come to the state to show an interest in Twin River. Lima said Harrah’s said it would keep the dogs running and told state officials they would bring in world-class poker championships as an added attraction. She said voters would not have to approve a referendum to allow the poker because it is strictly an exhibition, “it’s not something where the public would sit down and play poker, so they would be able to do that.”