Proposed $10M casino license fee proving to be contentious

If Gov. Benigno R. Fitial would have his way, he’d remove or reduce the proposed $10 million casino license fee. Some pro-casino House members, however, want the amount retained in House Bill 17-240, which was introduced during yesterday’s brief session.

Pro-casino members had hoped the bill seeking to legalize casino gambling on Saipan would be put on the calendar for passage but that didn’t happen because of a 2pm event at the governor’s office.

Instead, the House will hold another session on Tuesday to pass the casino bill.

Rep. Froilan Tenorio (Cov-Saipan) said the CNMI needs the $10 million casino license fee, adding that if investors do not have that money to pay for a casino license, then that’s something odd.

A casino license application fee alone is $250,000. Once the application is approved, a casino commission will require the investor to pay the $10 million casino license fee within 90 days. The license is valid for 30 years.

Fitial said he will continue to recommend removal or reduction of the proposed $10 million casino license fee

“I asked them [to] make it easier for [investors] to come in and we make it difficult for them to leave,” he said.

While the bill is expected to pass the House just like the first House casino bill, it may be up for another rough sailing in the Senate.

Fitial has this to say to senators: “This is something that the people need. They need relief and this is one of the few initiatives that I already discussed with the entire Legislature. We need to work together to realize this initiative in order to bring back economic recovery to the Commonwealth.”

Rep. Stanley Torres (Ind-Saipan), co-author of HB 17-240, said everybody has their own interest in the bill but concerns about the $10 million license fee could be resolved by Tuesday.

“It will be up to the other members if they want to remove the $10 million,” said Torres, author of a local bill legalizing casinos on Saipan that Fitial killed because of its unconstitutionality.

Rep. Joseph Palacios (R-Saipan) said he prefers that a $10-million license fee be retained in the bill. He said there is currently a proposal in Florida to build three casinos that require a $1.5 billion investment each.

“Investors will consider that Saipan as part of the CNMI—a U.S. soil and is using U.S. dollar—will be a good place to invest in. They know money here is legitimate. Coming from a businessman that I know, maintaining the $10 million will be a guarantee that the investor has money. And the CNMI needs fresh investment for its people and its economy,” Palacios said.

Rep. Rafael Demapan (Cov-Saipan) and Torres, along with three other House members, formally introduced the 29-page HB 17-240, a few days after Saipan voters were polled on their views on casinos.