THE House of Representatives on Thursday voted 14-2 to complete the Legislature’s override of Gov. Arnold I. Palacios’ veto of Senate Local Bill 24-1, allowing internet gaming on Tinian, and creating the island’s own stable coin.
A two-thirds majority in both the House and Senate was needed to override the veto.
Speaker Edmund S. Villagomez and House Floor Leader Marissa Flores voted against the override, while Reps. Joseph Flores, Thomas John Manglona and Malcolm Omar were excused.
The Senate, in its session at the Tinian courthouse on May 9, 2025, overrode the governor’s veto with a 7-1 vote. Sen. Celina R. Babauta cast the lone dissenting vote, while Sen. Corina Magofna was excused.
The bill is co-authored by Senate Vice President Karl King-Nabors, Sens. Frank Q. Cruz and Jude U. Hofschneider, all from Tinian.
In vetoing the bill, the governor cited Attorney General Edward Manibusan’s legal opinion that the Tinian and Aguiguan Legislative Delegation lacks the authority to enact legislation to regulate a matter “that is not exclusively a local matter or an activity that can be clearly restricted to” Tinian
The AG also said that there is no assurance that enforcement resources will be funded strictly by local funds derived from the regulated gambling industry.
House Floor Leader Flores, in her remarks during the House session, said she respects the AG, as “he was elected like us” and has a duty to provide an opinion based on the CNMI Constitution.
She said that every time lawmakers talk about casino gaming, “there is always a bitter pill to swallow.”
She added that it is true that the Commonwealth is in dire need of money, but “what I don’t like is we are forced to make a decision because we are desperate.”
She acknowledged that if the intent of the bill is met, the entire Commonwealth would benefit from the business gross revenue tax collections, but added, “I don’t want to be pushed into a corner to vote out of fear.”
She said in the fast-moving world of politics, “we are often pressured to act swiftly.”
“Let us try to be lawmakers [who will] be remembered not for the speed of our actions but for the wisdom, foresight and enduring impact of our policies,” she added.
She asked her colleague from Tinian, Rep. Patrick San Nicolas, to ensure that if the House were to override the veto, the lines of communication would remain open for future dialogue on the consequences of internet gambling.
She said they should also keep the line of communication open to “anybody who will challenge…illicit activities…that come with internet gaming, and that [those responsible should] be prosecuted.”
Not rushed
San Nicolas said overriding the governor’s veto “is forward looking [and would] give our island and our Commonwealth the legal infrastructure to enter a global digital economy through stand-alone internet gaming licenses and the creation of a Tinian stable coin.”
He said S.L.B. 24-1 “is not a rushed thing into an unregulated digital wild west.”
The bill, he added, is about transparency, accountability, and a modern financial infrastructure. “It is about building an economy that is not bound by the number of flights landing into the Commonwealth or the rise and fall of tourist arrivals. It is about taking control of our economic future — in a way that is legal, auditable, and competitive with international standards,” he said.
San Nicolas said a stable coin, as envisioned in the bill, is not speculative. He said it is a regulated tool to bring financial integrity and transparency to the island’s emerging digital gaming sector.
“Every transaction will be recorded. Every movement of funds will be accounted for,” San Nicolas said. “With a stable coin, we will give operators and regulators a clear, tamper-proof financial trail — reinforcing the legitimacy of our gaming industry and ensuring compliance with international norms.”
The virtual currency, he added, will be regulated by the municipality, and designed to enable transparency and secure traceable online wagering. Every transaction will be recorded, and every movement of funds will be accounted for, he reiterated.
He said the Commonwealth is facing a deep economic crisis. Legacy businesses are closing down, tourist arrivals have plummeted, air service is unreliable, federal support is diminishing “and our islands are no longer waiting for solutions to come from outside.”
By enacting S.L.B. 24-1, he said, Tinian will have the legal framework for a digital infrastructure that does not depend on walk-in tourists or federal subsidies.
“It will build a digital industry — generating revenues from licensed global jurisdictions. We need this bill to unlock our potential,” he added.
Rep. John Paul Sablan said he wanted “to state for the record that I’m ready to vote for an override. We are suffering economically in these trying times,” adding that the bill is a revenue-generating measure.
