Jai Alai Court at Newport Grand Makes Way for Slots

PROVIDENCE, Rhode Island – as reported by the Boston Globe: “The Carcieri administration quietly signed a contract with the Newport Grand allowing the casino to add hundreds of slot machines and build a new 90-room hotel to replace its jai alai court.

“Besides the hotel, the improvements will include new restaurants and bars, and more gambling areas in the space that was once occupied by the jai alai court. Newport Grand dropped jai alai in 2003 after more than 10 years of losses from the sport, which is popular in Latin America.

“The deal will nearly double the number of slots -- from 1,070 machines to 2,101. And more slot machines means increased revenue for the state, which claims a percentage of all gambling revenue.

“Although slots revenue has declined recently, projections by the state budget office suggest the state's cut from the Newport Grand could jump from $56.8 million this year to $156.8 million by 2012.

“The contract locks in Newport Grand's share of net slot revenue at 26 percent for five years. The agreement can be renewed for another five years if the hotel is finished by 2008.

“The contract also requires Newport Grand to increase its work force to 360 full-time employees earning at least 150 percent of the state's minimum wage. The casino now employs 175 people. Newport Grand must also use union workers for its expansion projects, according to the contract.

“Rep. Paul Crowley, D-Newport, called the contract ‘a step backwards.' He questioned why the state Department of Administration didn't announce the agreement or call for public comment before signing it…”