Administration seeks to end exclusivity; modernize gaming industry as fiscal crisis deepens
Following the collapse of the much-ballyhooed Imperial Pacific International casino on Saipan—the sole holder of the exclusive casino license and once billed as the flagship for the Pacific region—the move to jumpstart the failed industry is now underway.
The Apatang-Mendiola administration is working to end the exclusive license and, with expert analysis, believes the only way for the casino sector to succeed is to open it to multiple licenses.
In an 84-page letter to the presiding officers of the legislature, Senate President Karl King-Nabors and House Speaker Edmund Villagomez, on October 24, 2025, and obtained by Variety, the administration revealed this plan.
“As you are aware, the exclusive casino license framework under P.L. 18-56 collapsed when Imperial Pacific International (IPI) defaulted, leaving behind an unfinished facility and unfulfilled obligations. Recently, Team King Investment (CNMI), LLC acquired IPI’s assets through the bankruptcy process and has expressed strong interest in pursuing a non-exclusive casino license under a modernized legal framework,” the letter stated.
“The proposed amendment restructures the casino industry by ending exclusivity, authorizing multiple licenses, diversifying the revenue base, and introducing new revenue streams through online gaming and digital payment systems. Unlike the failed single-operator model, this bill establishes stability and resilience by distributing obligations across multiple credible investors.”
Key provisions of the recommended amendment to casino law, P.L. 18-56, include:
Establishing a non-exclusive license structure with scalable fees and enforceable performance benchmarks;
Linking the Casino Gross Revenue Tax (CGRT) directly to gaming performance, ensuring reliable public revenues;
Dedicating a portion of revenues to fund retirees’ pensions, safeguarding the most vulnerable; and
Modernizing the industry through iGaming and stablecoin-backed payment instruments, aligned with U.S. regulatory standards.
Fiscal impact
According to the Apatang-Mendiola administration’s fiscal impact analysis, reviving the casino industry by amending the Casino Act of 2014 would generate more than $100 million in public revenues within the first five years, with substantial growth potential as more licenses and online platforms are established.
“Beyond direct revenues, the revival of the casino industry is projected to stimulate broader economic benefits through the multiplier effect—creating jobs, driving consumer spending, and supporting ancillary businesses throughout the Commonwealth,” Governor Apatang and Lt. Gov. Mendiola told the presiding officers.
They added, “This request comes at a critical and urgent time…the Commonwealth faces a projected $22.9 million revenue shortfall for FY 2026, requiring fiscal austerity measures across all agencies. Without swift passage of new revenue-generating measures, the Commonwealth will face mounting difficulty sustaining its obligations, placing at risk the retirees’ 25 percent pension, essential services, the Public School System, and the very initiatives necessary to restore and sustain economic recovery. Immediate legislative action is therefore imperative.”
