3 Saipan casino applications picked up

Gov. Eloy S. Inos said yesterday that video lottery “is taking a back seat” for now as the CNMI moves forward with electronic gaming and Saipan casino. Three entities have so far picked up an application package for an exclusive casino license operation on Saipan, but none has turned in a completed application with a $1 million nonrefundable fee.

“Three [Saipan casino] applications were picked up under individual names but I’m sure they are agents of the potential investors,” the governor said in an interview after a joint news briefing with Delegate Gregorio Kilili C. Sablan (Ind-MP) regarding increased food stamps for Rota, Tinian, and Northern Islands residents.

Inos added that he does not expect these investors to turn in completed application packages until the last minute.

“They have until April 21,” he added.

The $1 million nonrefundable application fee will be used to investigate each investor applicant.

Any interested investor also has to deposit $30 million in license fee “by May 5, 2014.”

The governor earlier said he expects that investors from Korea and Hong Kong, including the new owner of Tinian Dynasty Hotel & Casino—Mega Stars Overseas Ltd.—would apply for an exclusive license to operate a casino on Saipan.

While the application form is a general document, Inos said it’s the business plan that would require more details.

An exclusive Saipan casino resort developer license will be valid for 40 years. The qualified investor needs to invest a minimum and initial $2 billion, inclusive of the casino and hotel-resort with at least 2,000 guest rooms.

Qualified applications will be evaluated on three broad factors: financial structure, 40 percent; proposed business plan, 40 percent; and benefit to community, 20 percent.

For several years, casino gaming was legal only on Tinian and Rota. This has changed when Inos signed a House Saipan casino bill on March 21, and its amendment bill on April 1.

As for electronic gaming, the governor said two applications for licenses were received. They are now “under review.”

“I think the video lottery is taking a back seat here because we want to get the electronic gaming up and running right away,” Inos added.

Electronic gaming machines are allowed only in hotels on Saipan with at least 100 rooms or, if they have fewer than 100 rooms, should be attached to a golf course.

Under the law, electronic table games include poker, roulette, Baccarat, craps, big wheel, slot machines, pai gow, sic bo, and any variations or composites.

Video lottery terminals, meanwhile, are strictly limited to golf resorts, hotels that have at least 100 rooms, or at any airport departure area that is accessible to departing passengers only.