By Sen. Judi Guthertz
Variety News Staff

THE owner of Guam Greyhound Park, John Baldwin, has made what will surely prove to be a controversial proposal. In order to assist GovGuam with its financial problems, Mr. Baldwin is offering to pre-pay $100 million in future gaming taxes in exchange for amendments to Guam law that would permit all forms of casino gaming exclusively at facilities operated by Guam Greyhound.
The proposal was sent to Governor Camacho last week, and to senators this week. In part, his proposal states:
“Guam Greyhound proposes that its enabling legislation be modified to allow for the construction and operation of a casino with all types of casino gaming being permitted.
Expansion of the Guam Greyhound’s existing gaming license would bring with it a 15 percent tax on all net gaming wins and would further provide that no other form of casino gaming be allowed on Guam for a period of 40 years.
Guam Greyhound will pay $100 million of its gaming taxes in advance, with the first $35 million being paid upon the full enactment of the expanded gaming statute, and an additional $65 million being paid 90 days thereafter.”
Let’s break down this offer:
• This unsolicited proposal requests that the current law be amended to allow all types of casino gaming in Guam at areas authorized by the Guam Greyhound gaming license.
This request would mean that Guam Greyhound would bypass the ongoing initiative process to have voters decide on the legalization of casino gaming in Guam. The proposal wants the Legislature and governor to amend the existing Guam Greyhound license. Guam Greyhound would be allowed to feature “all types” of casino gaming.
• The proposed amendment to the law would prohibit any form of casino gaming in Guam for 40 years except as provided by the Guam Greyhound gaming license.
The license could authorize Guam Greyhound to operate only at their existing facility in Tamuning, or could be worded to allow Guam Greyhound to operate casino facilities at multiple locations throughout our island. Only Guam Greyhound would be authorized to operate casinos in Guam for the next 40 years. Guam Greyhound would have a legally authorized monopoly in Guam.
• Guam Greyhound’s tax rate would be fixed at 15 percent of annual net gaming wins.
The $100 million up front payment of taxes would mean that Guam Greyhound, depending on its business structure and organization, could avoid paying any gaming taxes for many years. Guam Greyhound would have to make a cumulative total net gaming revenue of $666,666,666.67 –– not a very good omen –– before it reaches $100 million. At that point, Guam Greyhound would begin to pay additional taxes on gaming.
Despite GGP’s offer, the people of Guam have already spoken on gaming, at least until the next initiative comes up for a vote. It would be morally wrong to approve this proposal so soon after our people already expressed their will.
Most importantly, the proposal just doesn’t feel right. It is very generous of Mr. Baldwin to offer to come to our aid, but our totally preventable problem does not require anyone to come to our rescue. Our government is in trouble because of past actions of our current leaders. When they should have been spending tax dollars frugally, they overspent. When they should have been telling the people the truth about the state of our finances, they told tall tales. Our leaders need to show up for work, tell us the truth, and do the hard work it will take to get us out of this mess.
Mr. Baldwin, thanks, but no thanks.