He said his House Bill 17-129, the Internet gambling measure, will regulate an ongoing activity.
Palacios, R-Saipan said he introduced the measure to regulate and control Internet gambling so the CNMI government can earn revenue by imposing a tax on every cash prize sent through a bank account.
A person who has already earned hundreds of dollars from gambling on the Internet for two years now will testify tomorrow in the House of Representatives which is expected to act on the bill, Palacios said.
This person, Palacios added, has never paid taxes for his winnings.
“But he is willing to do so once the government imposes a tax,” Palacios said, adding that it was this person who contacted and informed him about Internet gambling.
The bill, once it becomes law, “shall not apply to the commonwealth lottery or any other game operated by or on behalf of the commonwealth.”
It will also not apply to the operation of a game incidental to the promotion of non-gaming businesses, and to the operation of a game in which every player is physically present in the premises of the casinos on Rota and Tinian.
The bill requires the Finance secretary to administer Internet gambling and allows the attorney general to assist Finance in developing regulations.
Before issuing any license, the Finance secretary “shall investigate the financial capacity and the character of the applicant. If the applicant already holds a license from the U.S. the secretary shall limit the investigation to the validity of the license.”
The license “shall be for an initial term of one year and renewable from year-to-year upon payment of license fee to be imposed by the Finance secretary. There shall be no limitations on the number of licenses available.”
