THE Commonwealth Casino Commission is “pleading for help” and is asking Gov. Ralph DLG Torres and Saipan and Northern Islands Legislative Delegation Chairman Vinnie F. Sablan to approve an appropriation of $1 million “to keep the commission afloat.”
In their joint letter to the governor and Sablan on Friday, Commission Chairman Edward C. Deleon Guerrero and Executive Director Andrew Yeom respectfully requested for allocation of the “available” $1 million in exclusive casino annual license fee that Imperial Pacific International paid in 2019.
Two weeks ago, Finance Secretary David DLG Atalig certified the availability of $1 million from the 2019 annual license fee for Tinian pursuant to Public Law 20-10, which allows Tinian and Rota to get a share of the Saipan casino license fee collection.
Deleon Guerrero and Yeom told Torres and Sablan that “at this time, we once again plead for your help in keeping the commission afloat to enable the Commonwealth to continue its casino industry by maintaining the presence of the casino regulatory body.”
“As you know,” they added, “the commission relies heavily on the Casino Commission Regulatory Fee Fund for its budgets to cover personnel and operating costs. Since Imperial Pacific International (CNMI) LLC failed to pay its 2020 annual regulatory fee, the commission continues to suffer from a severe budget shortfall. Due to budget constraints, early termination letters were issued on June 7, 2021, which resulted in the loss of 60% of the commission’s well-trained and vested employees. The commission is grateful to other government agencies for affording employment opportunities to the affected staff. We have reduced all our operational expenses to the bare minimum and we will continue to do so in every way possible,” Deleon Guerrero and Yeom said.
They also said that IPI, the current exclusive casino license holder, “is unable to honor its contractual obligations.”
IPI said its current financial predicament was a direct result of the Covid-19 pandemic and the safety measures.
The commission likewise noted that IPI has challenged in Superior Court the commission’s decision to suspend IPI’s license.
“It is imperative that the Commission maintain its presence to continue the ongoing litigation with the casino [licensee] over [IPI’s] violations of the casino license agreement and casino gaming laws,” Deleon Guerrero and Yeom said, adding that they believe it is critical for the CNMI to enable the casino industry to be revived and continue to contribute to the Commonwealth’s financial recovery efforts.
Public Law 21-38 gives the commission the authority to issue a new gaming license if the current casino license is revoked.
“The commission is in dire need of financial assistance to enable the commission to continue its regulatory enforcement of our gaming laws and to see through that our current license holder is afforded due process in their appeal,” the commission officials said.
“It would be reckless and irresponsible to shut down the regulatory body that pursued enforcement actions against the licensee without making every attempt possible to collect what is due to the CNMI,” they added.
