New House casino bill prefiled

Rep. Rafael Demapan (Cov-Saipan) and Rep. Stanley Torres (Ind-Saipan), along with three other House members, pre-filed yesterday a new House bill legalizing casino gambling on Saipan, a few days after Saipan voters were polled on their views on casinos and a month after Gov. Benigno R. Fitial vetoed a “local bill” on the same matter.

The 29-page House Bill 17-240 is expected to be introduced in today’s session.

“My main concern is that we do something [about the economy and our people],” Demapan told Saipan Tribune. “We cannot sit back and let the economy get worse without trying to help find legitimate ways to increase revenue.”

House Speaker Eli Cabrera (R-Saipan) said the government owes it to the people to restore their work hours, provide their deserved salary increases, and improve their lives, even if it takes the creation of a new industry such as a casino industry.

Cabrera and Demapan also thanked Northern Marianas College students under the Current Issues class of Sam McPhetres for conducting a survey on casinos.

Only less than 7 percent of registered Saipan voters participated in the survey, and anti-casino voters edged pro-casino voters by only nine votes.

Sen. Ralph Torres (R-Saipan) said the Senate also thanks the NMC students for the survey, and will soon come up with a statement on the outcome of the survey.

The Senate killed last year a House bill legalizing casino gambling on Saipan, saying Saipan voters should decide on the matter.

Meanwhile, under Demapan’s HB 17-240, although five casino licenses are available, a casino commission has the authority to issue or provide for an additional number of licenses subject to the approval of the Saipan and Northern Islands Legislative Delegation.

This cap does not apply to one casino that is owned collectively and operated by a chartered Northern Marianas Descent corporation.

Under the bill, a casino license application fee is $250,000. This is non-refundable.

A casino license costs $10 million, and is valid for 30 years. This has to be paid within 90 days after approval of the license application.

A license can be granted in connection with an existing hotel or resort that has at least 250 rooms, a golf course with at least 100 rooms or a convention center.

It can also be granted to an entity that will have a new investment of not less than $100 million, inclusive of the hotel, resort or convention center.

The casino gaming tax and associated penalties will be deemed general revenues, and will be allocated for appropriation to the three islands: 20 percent each for Rota and Tinian, and 60 percent for Saipan.

The $10 million license fee will also be deemed general revenues and will be allocated to restore the 80 work hours biweekly for government employees, and the balance will be made available to the NMI Retirement Fund.