U.S. voters may be wary of new gambling-Harrah's
U.S. voters may hesitate to allow further expansion of the casino industry, based on a key election result in Rhode Island last week, the chief financial officer of Harrah's Entertainment Inc. said on Monday. Rhode Island voters rejected a constitutional amendment that would have allowed an Indian tribe to build a casino in a partnership with Harrah's. "I think it is going to be very difficult for new gaming to become available in these states on terms where we and our shareholders can make an adequate return," said CFO Jonathan Halkyard told reporters. He said Harrah's, which had hoped to operate a casino in Rhode Island for the Narragansett Indian Tribe, spent $15 million on the campaign. Rhode Island Gov. Donald Carcieri had expressed concerns that the new casino would draw business away from the state's two existing gambling facilities, which pay the state 60 percent of their gaming income. Harrah's officials had said they would invest up to $1 billion and pay the state a $100 million licensing fee, according to news reports.
"When you compare some of these opportunities with Las Vegas, Atlantic City, or Biloxi (Mississippi) it's just not worth it," the Harrah's CFO said.
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