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Court encourages Legislature to meet with e-gaming operators
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Posted on Aug 25 2021
The Superior Court has encouraged legislative members to meet with those impacted by the law that was recently passed that essentially doubles taxes for e-gaming companies.
According to Gus Noble, Saipan Vegas Resort gaming consultant, during the temporary injunction hearing last week, Superior Court Associate Judge Kenneth Govendo encouraged members of the Legislature and the plaintiffs, Mariana Entertainment LLC and MP Holdings LLC, to discuss the effects of the bill and see if there is room for a compromise before the next court hearing on Sept. 16.
“[Last week], Mariana Entertainment LLC and MP Holdings LLC, the owners of Club 88 and Saipan Vegas, argued before Govendo that a temporary restraining order be granted against Local Law 22-6 imposing a double tax on e-gaming establishments. The judge at the hearing granted the plaintiffs time to respond to a late filed and continued the hearing until the 16th of September. The judge also strongly encouraged the Legislature and the companies impacted by the bill to discuss it and see if there was room for a compromise before returning to court on the 16,” he said.
Noble said Marianas Entertainment and MP Holdings are ready and available to talk with lawmaker if they would give them the chance.
“We were encouraged by the judges’ comments and recommendations at the hearing, and in the spirt of cooperation, we have proposed an amendment to the double tax law to the local delegation. We remain available at any time to meet with them to discuss and find a compromise solution, to keep a viable e-gaming industry and save over 70 local people their jobs, and we will be reaching out to them,” he said.
As for Govendo’s recommendation to talk out the bill, Noble said the plaintiffs appreciate the judge’s suggestion.
“We appreciate the judge’s observations about the speed in which the bill was passed with little notice, and without comment, and the judge’s recommendation that both parties open a dialogue and for the Legislature to get feedback on the impact of the bill,” he said.
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