Senate President Dennis James Mendiola listens during the Senate Committee on Gaming’s meeting with Commonwealth Casino Commission officials in the Senate chamber on Wednesday.
Photo by Emmanuel T. Erediano
THE Senate Committee on Gaming will schedule a meeting with the Commonwealth Lottery Commission, officials of the Department of Public Lands, and Chief Solicitor J. Robert Glass Jr.
During a separate meeting that began at 10 a.m. and concluded at 5 p.m. on Wednesday, the committee, chaired by Sen. Corina L. Magofna, held a lengthy discussion with Commonwealth Casino Commission Chairman Edward C. Deleon Guerrero and Commissioner Mario Taitano regarding the history of the casino industry and the events leading up to Imperial Pacific International’s bankruptcy filing.
The committee was entertaining the CCC’s request to reject Gov. Arnold I. Palacios’ Executive Order 2025-2, which abolishes the CCC.
Also present at the meeting were Senate President Dennis James C. Mendiola, Senate Vice President Karl King-Nabors, Senate Floor Leader Donald M. Manglona and Sen. Ronnie M. Calvo.
After receiving answers from Deleon Guerrero about the casino industry and the ramifications of the governor’s executive order, the senators determined the need to also hear from the Lottery Commission, DPL officials, and the chief solicitor.
The senators want to know whether the three-member Lottery Commission — composed of the Commerce secretary, Finance secretary, and the Department of Public Safety commissioner — has the capacity to assume the CCC’s regulatory responsibilities. The Lottery Commission, not the CCC, signed the casino license agreement with IPI.
The committee also wants DPL officials to shed light on the ongoing dispute involving the transfer of the land lease from IPI to Team King Investment (CNMI), LLC, the successful bidder in the February auction of IPI’s casino assets. Team King is now deemed the new owner of the unfinished casino-hotel complex in Garapan.
In addition, the senators want to ask Chief Solicitor Glass why he opposed a proposed stipulation resulting from IPI’s license revocation hearing earlier this year.
According to Deleon Guerrero, CCC and IPI were in the final stage of discussions when the chief solicitor “interjected himself into the discussion and informed the CCC that he would recommend to the AG [attorney general] not to sign the stipulation.”
The proposed stipulation included a settlement agreement under which IPI would pay the CNMI government $31 million in arrears and $16 million to lift the suspension of its license. The agreement would also include IPI’s surrender of its exclusive casino license.
Deleon Guerrero thanked the Senate committee for allowing the CCC to present its side, noting that the commission spent significant time, resources, and funding to develop the CNMI’s gaming regulatory framework. He said the CCC maintained a “very robust regulatory regime” between 2015 and 2018 — a period when significant casino revenue flowed into the Commonwealth treasury.
He said it was unfortunate that IPI was hit with numerous setbacks, including environmental challenges, Super Typhoon Yutu, the Covid-19 pandemic, labor shortages, and construction issues.
Deleon Guerrero reiterated the CCC’s request: “Please reject the EO. It is not the proper way to go.”
Magofna, for her part, said the committee appreciates the CCC for sharing its information.
“We’ll take all of that for review and consideration, and we look forward to meeting with the Lottery Commission, as well as taking the suggestion from Sen. Donald Manglona to invite DPL and the chief solicitor,” she said.
