Work begins to put gaming tools in Rota, Tinian airports

The Commonwealth Ports Authority has started laying the groundwork that will clear the road for the installation of gaming machines in Tinian and Rota airports, Board Chair Roman S. Palacios said yesterday.

In an interview, Mr. Palacios disclosed that the Board is now crafting the proposed amendment to the existing airport rules and regulations to allow gaming activities within the facilities.

Mr. Palacios also said CPA has been working closely with the Legislature for legislation that will help expedite installation of the gaming machines at the two islands’ air transport facilities.

Installation of gaming machines at the islands’ airports has been taken into consideration by CPA in response to increasing call from airline companies for a reduction in airport fees charged at the Saipan facility.

International carriers servicing Saipan from Asian destinations lamented that they are indirectly subsidizing the continued operations of Tinian and Rota airports through the imposition by CPA of higher fees.

They suggested that CPA request government subsidy to finance the operations of the two airports.

In response, CPA has held discussions with the Commonwealth’s legislative leaders for additional appropriation to fund Tinian and Rota airports but CNMI’s current fiscal condition was on the way.

According to Mr. Palacios, installation of gaming machines at the airports on Tinian and Rota would greatly help minimize the subsidy provided by the Saipan International Airport to the two facilities.

He pointed out that the installation of the poker and slot machines there will cover the needed revenues currently being provided by Saipan International Airport.

He added that this is part of CPA’s overall program to increase non-aviation revenues, in order to come up with a more competitive schedule of airport charges. He said this would attract more carriers into the CNMI.

Through the gaming machine devices, CPA hopes to recoup revenue losses in the past years after aviation revenues dropped as a result of declining passenger haul from major Asian cities to the Northern Marianas.

At the same time, CPA Executive Director Carlos H. Salas said the amendments on airport rules and regulations will remove the prohibition on the operation of gambling and other amusement machines at CNMI airports.

It will also allow CPA to award concessions for the operations of gambling machines at Rota and Tinian airports to stimulate CPA’s non-aviation revenues.

CPA, last month, came up with the amendments to the rules and regulations but the changes will have to be discussed and consulted with Duty Free Shoppers, which hold the master concession for CNMI airports.

The 1985 CPA-DFS Master Concession Agreement prohibits the operation of any amusement or gambling device at any port of entry where DFS maintains an operating facility.

Since DFS does not have an operating facility on Rota and Tinian, the provision of the Master Concession prohibiting the operation of gambling and amusement devices does not apply in both the Rota and West Tinian International Airports.