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38 Studios' Rhode Island loan deal getting even more political heat

The controversial decision by the state of Rhode Island to approve $75 million in loan guarantees to developer 38 Studios earlier this year is still generating lots of opposition from local political officials. GamePolitics reports that the state's general treasurer Frank Caprio has now fully thrown his hat against the deal after previously sitting on the fence.

Caprio, who also happens to be running for Rhode Island's governor seat for the Democratic party, has now said he wants credit rating firms Moody's and Standard & Poor's to "hold off on reviewing the project until a new governor can take office." Naturally some of his political opponents have accused Caprio of flip-flopping on his views. 38 Studios, which is currently based in Massachusetts, wants to move its main offices to Rhode Island in order to make its fantasy MMO title code named Copernicus.

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