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‘Club C’ owner is suing Finance to stop ‘Club 88’
Manager says Ocean View Hotel has 101 rooms in compliance with the law
The owner of electronic gaming facility Club C is suing the Department of Finance for allegedly authorizing Mariana Entertainment LLC to operate an electronic gaming facility at the Saipan Ocean View Hotel in Garapan.
Club 88 manager Gus Noble shows Saipan Tribune yesterday the 60 brand new video slot machines in their facility located on the first floor of Saipan Ocean View Hotel in Garapan. (Ferdie De La Torre)
Strategic Gaming Solutions Inc., which operates Club C at the Kanoa Resort in Susupe, filed the lawsuit in the Superior Court to prevent Finance from allowing Mariana Entertainment LLC from operating the electronic gaming facility at the Saipan Ocean View Hotel in violation of Public Law 18-30, also known as the Tourism Entertainment and Destination Act of 2013.
Strategic Gaming counsel Steven P. Pixley said that under the act, gaming activities must be operated only within Saipan in an enclosed area at a hotel or resort that has 100 or more rooms or fewer than 100 rooms so long as the hotel is attached to a golf course.
Pixley said Ocean View Hotel did not meet the 100-room requirement at the time Finance issued an electronic gaming license to Mariana Entertainment LLC.
Saipan visited the Ocean View Hotel yesterday afternoon and a staff said they have 100 rooms.
Saipan Tribune also observed that an electronic gaming facility called “Club 88” located in front and on the first floor of Ocean View Hotel already has staff ready for business. No customer was inside and the staff said they are just waiting for the license.
Club 88 manager Gus Noble said Ocean View Hotel has 101 rooms and that when they got the conditional license from Finance 12 months ago, there were already 101 rooms.
Noble said the hotel owner issued affidavits to confirm that there are 101 rooms and that Finance twice visited them and physically counted the rooms and confirmed 101 rooms.
Noble said that they were supposed to open business last July 4, but the typhoons, communications problem, and Club C’s complaint slowed down the issuance of the license.
“It’s a totally frivolous claim…without any basis in fact and without checking the facts,” he said.
Noble said Club 88, which is designed for the Asian tourists market, has 60 brand new video slot machines from the U.S. mainland.
He said they also have a VIP room and a small bar for entertainment.
In Strategic Gaming’s complaint, Pixley said Guerrero was informed by the Marianas Visitors Authority that Saipan Ocean View Hotel opened in 1987 with 87 rooms and that in February 2014, the hotel expanded to 90 rooms.
Pixley said based upon information and belief, Mariana Entertainment LLC intended to start operation of this facility last July 4.
Pixley said Strategic Gaming, which operates “Club C” at the Kanoa Resort, was issued an electronic gaming license in 2014.
Pixley said prior to the issuance of this license, Finance required Strategic Gaming to undergo at its expense an extensive background check of its officers, shareholders and directors.
In addition, Pixley said, Strategic Gaming was required to demonstrate full compliance with applicable laws, including building codes, fire safety regulations, Americans with Disabilities Act compliance, Commonwealth Zoning laws, etc.
Pixley said Strategic Gaming invested hundreds of thousands of dollars in the “Club C” facility to ensure full compliance with the high standards contemplated by P.L. 18-30.
“This investment included state of the art security cameras to ensure compliance with laws and for the protection of its customers,” he said.
Pixley said Marianas Entertainment LLC was not subjected to the same degree of scrutiny by Finance.
Pixley said in an effort to resolve this matter, Strategic Gaming, through its treasurer Juan T. Guerrero, submitted a letter to Attorney General Edward Manibusan, following up on their Open Government Act request and informing the AG of its concerns. Pixley said a second letter to the AG was sent on June 25, 2015.
“To date, Strategic Gaming Solutions has not received any response to these two letters,” Pixley said.
