Eye on electronic gaming after Saipan casino bill’s demise

Senate President Ralph Torres (R-Saipan) is seeking reconsideration of a $2,500 license fee per electronic gaming machine that a joint Senate and House panel recommended, saying the fee is “too low” considering that the government imposes a $12,500 in license fee for each poker machine on Saipan. This comes after the Senate filed on Wednesday a Saipan casino legalization bill that the House passed in June.

Torres is proposing a $5,000 license fee per electronic gaming machine, which he said is a compromise, considering that the original proposal was $10,000.

With the Saipan casino bill’s demise at the Senate once again, all eyes are now on electronic gaming legislation that’s pending at the Senate.

But Torres withdrew from session calendar a conference committee report on a compromise electronic gaming bill that the House had already approved.

“I am humbly asking for a reconsideration of the fee but I support the bill’s intent,” the Senate president told Saipan Tribune yesterday.

Torres is seeking a meeting with House Ways and Means Committee chair and bill author Tony Sablan (Ind-Saipan), among others, to discuss the issue.

The same committee report recommended that businesses engaged in electronic gaming are not eligible for a qualifying certificate, a tax break program. It only allows electronic gaming operations at hotels or resorts with at least 100 rooms or those attached to a golf course if they have less than 100 rooms. These are only allowed on Saipan.

Senate floor leader Ray Yumul (Ind-Saipan), who voted to file the Saipan casino bill, said the electronic gaming bill “is still poised for passage in the Senate.”

“It proposes to reserve 60 percent of the fees collected for retirees, among others,” Yumul said.

The Senate move to set aside the casino bill comes at a time when the government needs to generate new, additional sources of revenue not only to meet its obligations under the NMI Retirement Fund global settlement agreement but also to restore the 25 percent cut in retirees’ pension, while at the same time continuing to provide other public services and programs.

But as far as the Inos administration is concerned, there is still hope for casino legalization on Saipan.

Gov. Eloy S. Inos does not object to conducting an independent feasibility and economic impact study on the legalization of casinos on Saipan, press secretary Angel Demapan said yesterday.

The Inos administration had advocated for legalization of casino on Saipan for purposes of generating additional revenue.

“With such a study, the people of Saipan will be afforded much needed information as to the impact and added resources the government stands to realize from this industry,” Demapan said.

There is no telling, however, whether the administration would reprogram funds for such an independent study or the Legislature would appropriate funds for it.

But the Inos administration is hopeful about video lottery, which is now legal in the CNMI. A request for proposals for video lottery also has yet to be released.

“In the meantime, considerable progress is happening in the area of video lottery with the newly formed commission preparing to issue requests for proposals. The electronic gaming bill is also another revenue-generating measure pending. However, these were not intended to replace revenues that would’ve been realized from casino gaming. These are intended for generating additional revenue,” he said.

By a vote of 7-1, the Senate decided to file the Saipan casino bill. Sen. Pete Reyes (Ind-Saipan), the only one who voted “no,” said the Senate basically killed the bill.