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local bill introduced by House Floor Leader Ralph N. Yumul is seeking to allow up to five casino licenses in Saipan, Northern Mariana Islands. Currently, Hong Kong-based investment holding company Imperial Pacific International holds the exclusive rights to a casino license on the island. The group is facing a series of problems and debts in its operations.
“The present situation, where the exclusive casino licensee has not been able to pay taxes and, most relevantly, cannot reliably pay the $15 million guaranteed license fee, demonstrates that it was imprudent for the Commonwealth to rely on just one industry and just one company,” reads House Local Bill 22-26, according to Marianas Variety.
The bill further states that tying the fate of the retirees’ pension to one single industry “was risky,” but even more so to tie it to an exclusive licensee. In order to provide increased stability and dependability, the Saipan and Northern Islands Legislative Delegation found that “we must move away from the current single licensee framework.”
H.L.B. 22-26 would also mandate that the casinos operating in the Third Senatorial District will provide licensee fees to pay the 25% portion of pension benefits to all retirees in the district and reduce reliance on the funds generated from the Casino Gross Revenue Tax. The original intent of Public Law 18-56, which legalized casino gaming in Saipan, was to create a reliable funding source for retiree pensions.
The local legislation “shall provide for up to five independently viable entities,” reads the bill. “By increasing the number of locally licensed casinos, there will be more economic support for the industry as the casinos can compete but still work together, sharing costs and expenses for promoting the industry and bringing in tourists for the benefit of not just the Third Senatorial District, but also the entire CNMI.”
By increasing the number of licenses from 1 to 5, while simultaneously requiring annual fees of $3 million instead of $15 million, it is believed the system will impose less risk for all parties concerned. Under this new framework, if five local casinos were to pay about $5 million each, it would result in a total of $25 million, $10 million up from what is currently required.
“The present exclusive casino license holder has strongly indicated that it cannot or will not be paying its $15 million fee in full, its annual $3 million regulatory fee to the Commonwealth Casino Commission, nor does it intend to pay its community benefit obligation,” also states the bill.
These indications, and a record of financial difficulties, made it evident to the Saipan administration that “the time has come to establish a local industry” that will be set up and designed “for success as opposed to failure.”
Original article: https://www.yogonet.com/international//noticias/2021/10/29/59983-saipan-casino-licenses-to-grow-from-1-to-5-in-new-bill
