Wiseman says casino law is poorly drafted

Superior Court Associate Judge David A. Wiseman criticized yesterday the casino law, describing it as “haphazard and poorly drafted.”

Wiseman made the statement as he placed under advisement casino applicant Marianas Stars Entertainment Inc.’s motion for preliminary injunction after hearing the arguments of all parties.

The preliminary injunction seeks to stop, before the temporary restraining order’s expiration, Gov. Eloy S. Inos, the CNMI government, the Commonwealth Lottery Commission, and the Finance secretary from issuing a casino license unless and until all aspects of the casino law are first complied with, such as the Casino Commission’s required involvement in the applicant investigation and the issuance of regulations.

“It is so unfortunate and adverse to the common good that the government, in its endeavor to establish a casino industry in the CNMI, could not have done it properly and with due care and diligence rather than what has evolved as a haphazard and poorly drafted law,” said Wiseman at the hearing that was packed with lawmakers, lawyers, retirees, and supporters of the two casino applicants.

Wiseman extended the TRO until he issued the order this week on the preliminary injunction matter.

Wiseman issued the TRO on June 19 after Marianas Stars Entertainment filed on that same day the lawsuit and requested a TRO.

The TRO stops Inos, the CNMI government, the Commonwealth Lottery Commission, and the Finance secretary from either denying or approving a casino license.

Attorney Sean Frink, counsel for Marianas Stars, argued for the importance of issuing the preliminary injunction. Assistant attorney general Reena Patel, as counsel for Inos, the government, the Lottery Commission, and Finance secretary, argued the defendants’ opposition to an injunction.

Attorney Michael Dotts, who appeared with attorney Viola Alepuyo as co-counsel for another casino applicant, Best Sunshine International Ltd., argued, among other things, why they should be allowed to intervene in the case.

Frink argued that the casino law clearly requires that the pre-license investigation be conducted by the Casino Commission.

Frink said such independent investigation occurs according to adopted regulations, and that it is the Casino Commission that has the control and expenditure authority over the non-refundable deposits that are to be used to conduct the investigation.

Frink said the Lottery Commission and co-defendants have ignored these clear provisions of the law in moving toward the issuance of a casino license.

“They are government officials charged with upholding the law and will be enjoined from committing further illegal acts, including further illegal expenditures, the conduct of an improper investigation, and the issuance of an illegal casino license, absent the eventual required involvement of the Casino Committee,” Frink said.

Patel asserted, among other things, that the Lottery Commission is not required to issue a license to either applicant if the commission determines that neither applicant satisfies the Commonwealth’s requirements.

In the defendants’ pleadings, Patel said the Lottery Commission will not be able to continue any further due diligence if the TRO is extended as it prohibits defendants from “taking any furtherance of issuing a casino license.”

Several people, mostly retirees, lawmakers, and supporters of two casino applicants, emerge from the courtroom of Superior Court Associate Judge David A. Wiseman after a hearing on a motion for preliminary injunction yesterday. (Ferdie de la Torre)

Dotts, counsel for Best Sunshine, argued, among other things, that only disbursement of the $30 million deposited by Marianas Stars should be enjoined if the company is issued the license.

“You don’t have to stop the ongoing investigation,” Dotts said, adding that the process should be allowed to go forward.

In an interview with reporters after the hearing, Dotts said if Marianas Stars is worried about its $30 million, then it could just enjoin its $30 million.

“If they don’t think the law is correct, if they think it’s an illegal license, just take their money and go. If they think it’s illegal why are they here?” Dotts asked.

Marianas Stars Entertainment and Best Sunshine International are both seeking the exclusive Saipan casino resort developer license. Each had already submitted a $1 million nonrefundable application fee, a completed application, a business plan, and a $30 million refundable deposit.