BY a vote of 7 to 1, the Senate on Friday overrode Gov. Arnold I. Palacios’ veto of Senate Local Bill 24-1, which would allow internet gaming on Tinian and create the island’s own stablecoin.
Sen. Celina R. Babauta of Saipan, cast the lone dissenting vote while Sen. Corina L. Magofna, also of Saipan, was excused.
The bill is co-authored by the three Tinian senators: Karl King-Nabors, Frank Q. Cruz and Jude U. Hofschneider.
It will become law if the House of Representatives, which has 20 members — 18 of whom are from Saipan — also overrides the governor’s veto by a two-thirds vote of its members.
In his veto message last month, the governor cited the advice of Attorney General Edward E. Manibusan, who said that the Tinian and Aguiguan Legislative Delegation lacks the authority to enact legislation that would regulate a matter “that is not exclusively a local matter or an activity that can be clearly restricted to the Second Senatorial District,” referring to Tinian.
On Friday, it was Senate Floor Leader Donald M. Manglona of Rota who moved to override the governor’s veto.
King-Nabors argued that the measure “is actually far more stringent and [would provide an] efficient way to oversee … online gaming….”
He said the use of stablecoin in online gaming activities “allows for more transparency” and, through the Tinian Casino Gaming Control Commission, also enables the application of federal anti-money laundering statutes, as well as banking and tax laws.
“This legislation stands in a moment at a time. When we are going through so much economic hardship, I find it difficult that we are constantly having those … obstacles when we are trying to incentivize and look for ways to bring in revenues that don’t affect our environment, that don’t require brick and mortar [establishments], that don’t impact our land by having to figure out how we are going to treat our sewage,” King-Nabors said.
He said online gaming is in line with economic diversification which is much needed in the CNMI.
“As we know, the economy has yet to bounce back to pre-pandemic levels. And there’s really no way to forecast when we will get back to that level,” he added.
Babauta said she supports creating a new industry on Tinian, and its intent to be more self-sufficient. But she has “deep concern” about the lack of resources, expertise and knowledge to enforce the online gaming law and the use of stablecoin in gaming activities.
“We are restricted by the federal statute and must comply with that,” she said. “I don’t believe that gambling is the only thing that we can be looking [at] every single time. There are so many social ills that come with gambling and I am very cautious and very concerned when it comes to supporting bills with gambling in it.”
