THE Saipan local law that Gov. Ralph DLG Torres signed last week will shut down Saipan Vegas and Club 88, and put 70 locals and other U.S. workers out of work, according to consultant Gus Noble.
The affected employees interviewed by Variety said they cannot afford to lose their jobs amid the Covid-19 pandemic and an economic downturn.
They protested against Saipan Local Law 22-6 by wearing “Save Our Jobs” T-shirts while on duty Sunday.
The employees are also launching a signature campaign to petition the repeal of the local law which was passed by the delegation with neither a public hearing nor a committee report.
In a media conference on Sunday, the Club 88 and Saipan Vegas employees and management said the local law was enacted “undemocratically” without giving people an opportunity to comment.
Authored by House Floor Leader Ralph N. Yumul, S.L.L. 22-6 imposes an additional tax of $2,500 or 15% of net gaming proceeds, whichever is greater, on all electronic gaming devices on Saipan, including poker amusement machines located within e-gaming facilities or hotels.
The local measure doubles the fees on these gaming devices.
Audrey Castro, a shift manager of Saipan Vegas for four years now, said she is her family’s only bread winner. If Saipan Vegas shuts down, she won’t be able to pay for their bills. “It’s not easy to lose one’s job these days,” she added.
Shift supervisor Maximina Gabionza said her job at Saipan Vegas is her chance to survive after losing her previous job at Kanoa Resort & Spa three years ago.
She said it will be unfair to her and others who are trying to survive the pandemic if the government itself is forcing businesses to shut down by imposing high tax rates when the economy is down.
Noble described S.L.L. 22-6 as a “harsh and unfair double tax.” He noted that the bill was passed by the legislative delegation without notice to the businesses that would be affected by the measure.
This is not how democracy works, he said. “Backroom deals done by politicians with clear conflicts of interests cannot be tolerated by the people and voters,” he added.
Although the purpose of the bill was to ostensibly raise revenue, Noble said, “the local tax may have the opposite effect causing the e-gaming industry in the CNMI to shut down entirely.”
“If this happens, despite the imposition of a new tax, the citizens of the CNMI will receive zero revenue from e-gaming,” he added.
He said Saipan Vegas and Club 88 are already paying the highest tax rates on island: 15% gaming tax, 5% business gross revenue tax, a $100,000 license fee per year, on top of the regular CNMI income tax.
Noble said the new law adds an additional 15% tax which will render businesses financially unsustainable and force them to shut down.
Noble also said that the sponsor of the local measure “had a clear conflict of interest” because his brother, Ray Yumul, is the chief executive officer of Imperial Pacific International which Noble believes will directly benefit from the enactment of the local measure.
Noble said S.L.L. 22-6 doubles the tax on IPI’s only competitor.
Saipan Vegas and Club 88 consultant Gus Noble, center, joins employees in a peaceful protest against Saipan Local Law 22-6 at Saipan Vegas on Sunday.
The employees of Saipan Vegas wear “Save our Jobs” T-shirts on Sunday.
