TO resuscitate the casino industry in the CNMI, the transition team assigned to the Commonwealth Casino Commission recommended, among other things, the negotiation of a settlement agreement with the lone exclusive licensee, Imperial Pacific International, and electronic gaming as a possible solution to the CNMI government’s revenue problems.
In its report, the transition team led by Joe Rios also stated that the unfunded casino commission is facing “ever-increasing litigation expenses [with] no certainty to its end.”
Besides “poor media coverage,” the transition team likewise noted the “insignificant role” played by the central government in the gaming industry.
Commission Chairman Edward C. Deleon Guerrero said in a meeting last week that he has “no serious objections” to the transition team’s findings.
He said the findings were consistent with what the commission had been presenting to the public in its monthly meetings.
The transition team also found that the casino license agreement between the Lottery Commission and IPI has insufficient provisions on how the commission should regulate the exclusive license holder.
In addition, there was “lack of cooperation between government agencies.”
Deleon Guerrero in last week’s meeting mentioned that other government agencies played a significant role in overseeing the development of a casino-hotel on Saipan.
The Department of Public Works was responsible for ensuring that the construction of IPI’s casino-hotel in Garapan complied with safety rules while the Department of Labor was also there to ensure that the rights of construction workers and other IPI employees were protected.
But Deleon Guerrero said whenever there were issues concerning infrastructure and labor, it was the casino commission that always took the blame.
The transition team report also stated that the commission — which is currently pursuing enforcement actions, including the revocation of IPI’s exclusive license — needs funding.
In January, the commission office shut down due to lack of funds. The commissioners, however, are still holding monthly meetings even without staff because “this is required by our regulations.”
Except for a $1 appropriation, the casino commission is not funded by the CNMI government. As for the commission’s “receivables,” these include the $3.15 million in annual regulatory fees that IPI has failed to pay three years in a row.
According to the transition team report, the new administration “must be serious whether or not to invest in the tourist entertainment industry.”
The team also recommended that the Legislature, the Office of the Attorney General, the Department of Public Lands, the Historic Preservation Office and other relevant government entities work with the commission to “restructure casino laws” and allow for perhaps three licenses instead of just one, and transform casino operations into a “subset to tourist accommodations” in existing hotels and resorts.
The CNMI government, the team added, “must take a more proactive role overseeing the CNMI’s gaming industry.”
Besides team leader Joe Rios, the other members of the transition team were Patrick Sablan, Julita Omar and Jay Olopai.
