Propst accuses e-gaming venues’ owners of lying, insincerity

House Gaming Committee chair Rep. Edwin K. Propst (D-Saipan) blasted the companies that own e-gaming venues Club 88 and Saipan Vegas Resort last Tuesday, accusing them of lying and making all Saipan representatives seem like horrible lawmakers.

Speaking during a House of Representatives session, Propst said the owner of Club 88 and Saipan Vegas Resort are also accusing Saipan lawmakers of recklessly trying to hurt their 70 employees.

At least three Club 88 and Saipan Vegas Resort employees, wearing shirt with the printed message “Save our Jobs” were in the House’s gallery when Propst made his remarks.

At the center of this contention is the newly enacted Saipan Local Law 22-6, which essentially doubles the license fees imposed on e-gaming machines. MP Holdings LLC, which operates Saipan Vegas, and Mariana Entertainment, LLC, which operates Club 88, have accused the Saipan and Northern Islands Legislative Delegation of rushing the local laws passage through the Legislature, without seeking public comments. Both companies, which are sister firms, have expressed optimism lately that the law could still be amended.

During Tuesday’s session, Propst said he is frustrated because the owner conveniently missed out on many important facts and lied about closing down Club 88, yet that did not happen. “It wasn’t shutdown! So who’s the liar? We or them?” Propst said.

Bart Jackson, who is the general manager of MP Holdings LLC and Mariana Entertainment, LLC said in a statement yesterday that they had intended to close Club 88 on Aug. 27 but, after some initial positive responses from the Saipan delegation, they decided to postpone the closure “as we were hopeful that we could find a compromise solution to [SLL 22-6] and because we had recently offered a suggested amendment to the local law. Our decision to postpone the closure is in part driven by our desire to keep employing the 30 hardworking individuals at Club 88.”

Edwin K. Propst

Propst said the thing that bothers him is how MP Holdings LLC and Mariana Entertainment, LLC have singled out House floor leader Ralph N. Yumul (R-Saipan) and made him out to be the enemy, because he happens to be the author of the bill and is the brother of Imperial Pacific International (CNMI) LLC’s chief executive officer Ray Yumul. He said for the owner of these e-gaming establishments to file an ethics complaint against Yumul “is insulting to our intelligence.”

“To try to shame us into somehow bowing, that we are going to suddenly to repeal this because we are being threatened and coerced and bamboozled is not going to work for me and I’m certain it will not work for you!” Propst said.

He said the owner ignores the fact that the bill was prefiled on April 14, introduced on April 23, transmitted for action on June 18, and signed into law by Gov. Ralph DLG. Torres on Aug. 2, 2021.

In his statement yesterday, Jackson said they believe it is important as a member of the local business community to be able to be heard by the Saipan delegation on matters that impact their businesses.

“We have never intended any disrespect or insult to members of the Saipan delegation. We have only voiced what we sincerely believe are legitimate concerns regarding the impact of Saipan Local Law 22-6 on our ability to run our businesses and keep our 70 employees employed. We were not given an opportunity to discuss [SLL 22-6] with the Saipan delegation regarding the financial impacts prior to Aug. 2, 2021.

“In sum, we have proposed a possible amendment to Saipan Local Law 22-6. We want to have further dialogue with the local delegation. We remain hopeful we can reach a compromise regarding the amount of the new license fee,” he added.

Propst insists that the local law’s passage was a policy call and that’s what they do as policy makers. He pointed out that the intent of SLL 22-6 is to include all businesses in this local law and tax them all, including IPI.

Propst said Club 88 and Saipan Vegas Resort gaming consultant Gus Noble needs to follow the law and register as a lobbyist. “Same as anyone else who is paid by that company to register as a lobbyist,” he said.

Propst said Noble and the owner should also apologize to Yumul.

“If they want to negotiate they should be sincere!” he said.