MARIANA Entertainment LLC, which operates Club 88, and MP Holdings LLC, which operates Saipan Vegas, have filed a motion in Superior Court for a temporary restraining order and for a preliminary injunction against the CNMI government over the enactment of Saipan Local Law 22-6, which doubles the fees imposed on electronic gaming machines.
Club 88 in Garapan and Saipan Vegas in Chalan Laulau operate the only electronic-gaming machines on island. Their consultant, Gus Noble, said a total of 190 e-gaming machines in both arcades are operational.
Mariana Entertainment and MP Holdings are represented by attorney Michael W. Dotts. Named defendant is the Department of Finance, which collects e-gaming fees through its Revenue and Taxation Division.
On Tuesday, Mariana Entertainment and MP Holdings filed a complaint in Superior Court against Finance over the local measure, which imposes an additional fee of $2,500 or 15%, whichever is greater, on all electronic-gaming devices on Saipan, including poker amusement machines located within e-gaming facilities or hotels.
Noble also appeared before the Saipan and Northern Islands Legislative Delegation session on Tuesday. He told lawmakers that the massive and unprecedented increase in fees will “put us out of business,” and put their local employees out of work amid the Covid-19 pandemic.
The bill that became S.L.L. 22-6 was passed by the delegation without holding a public hearing or issuing a committee report.
