Senate kills casino bill, again

After a lengthy and heated debate, the Senate killed late Wednesday night a controversial House bill legalizing casino gambling on Saipan, some two years since senators rejected a similar proposal in 2010 and five years since Saipan voters rejected the idea for the second time.

The four-month-old House Bill 17-240 was defeated by a vote of 6-2 vote with one absence during a Senate session that wrapped up at past 9:30pm.

Senate floor leader Pete Reyes (R-Saipan) and Sen. Luis Crisostimo (Ind-Saipan) spoke at length about their strong support for the bill, introduced by Rep. Ralph Demapan (Cov-Saipan) and Rep. Stanley Torres (Ind-Saipan), but they were eclipsed by those opposing it.

Those who voted to reject the Saipan casino bill were Senate President Paul Manglona (Ind-Rota), Senate Vice President Jude Hofschneider (R-Tinian), Sen. Frank Cruz (R-Tinian), Sen. Juan M. Ayuyu (Ind-Rota), Sen. Henry San Nicolas (Cov-Tinian) and Sen. Jovita Taimanao (Ind-Rota). Sen. Ralph Torres (R-Saipan) was absent.

The casino bill was not even on the agenda but Cruz made a motion to place it on calendar during the session.

Reyes said he knew that the intent of Cruz’s motion was to immediately “kill” the casino bill rather than deliberate on it.

“I was hoping there will be intelligent discussion and deliberation. But it’s a numbers game,” Reyes told Saipan Tribune.

Cruz said he continues to believe that Saipan voters should be given the opportunity to decide whether they want casino gambling legalized on their island. “All this time I have been saying this should be up to the Saipan voters whether they want it or not. Ask them again,” he said.

Cruz said if some lawmakers believe that a casino industry will help revive the CNMI economy, they should instead help develop the Tinian and Rota casino industries.

Saipan voters had already twice rejected a casino initiative.

Reyes said most of the senators were alluding to the Senate resolution, which he sponsored, that blocks any attempt to legalize casino gambling on Saipan.

But Reyes said “times have changed.” He said at the time he sponsored the resolution, the problems at the Commonwealth Health Center, the NMI Retirement Fund, the Public School System and other programs were not at a crisis level.

“Now, the hospital is in ICU [intensive care unit]. We need to change with time. We continue to act like a crisis Legislature. We act only when there’s crisis. We’re not pro-active. We never prevented a crisis. We cannot continue to be stubborn,” Reyes said.

Manglona also spoke at length about other ways to generate revenue and help revive the economy, including proposals to reduce tax rebates, amend Article 12 or the land alienation provision of the NMI Constitution, and setting aside 25 percent of general fund for the Retirement Fund.

The Senate president said a Macau-based Asian gaming consultant who visited Saipan last year said the CNMI cannot expect to generate revenue from a casino industry right away.

Manglona said as far as he can remember, the casino expert projected that once the industry kicks off the ground, the annual revenue could only be $7 million, when the NMI Retirement Fund alone needs some $400 million.

“So are we going to sit back knowing that a casino bill is already passed? No. This is why the Senate leadership wants the Legislature and the Executive Branch to work together to look at other things such as repealing Article 12 and improving revenue collection efforts,” he said.

Reyes said those who support a casino industry will not be stopping at passing the casino bill.

The casino expert Manglona was referring to was Ben Lee, managing partner of IGamiX Management & Consulting Ltd., who had said that Saipan should start small if it wants a casino industry established, and the island should be ready to face stiff competition from Asian destinations with established casino industries such as Macau, Korea, Singapore, Cambodia, and the Philippines.

But Lee had said that despite the competition, a casino industry is “what Saipan needs, I believe, to give tourism a much needed boost right now.”

Lt. Gov. Eloy S. Inos, in a separate interview yesterday, said the Senate must have a reason to reject the casino bill, but asked whether the Senate has alternative ideas to boost the CNMI economy.

“The idea was for that bill to generate revenue so if they just killed the bill, then what alternative legislation or initiative do they recommend to generate revenue?” Inos asked.

Gov. Benigno R. Fitial and Rep. Froilan Tenorio were sharp in their criticism of the Senate’s rejection of the casino measure at a time when the CNMI is in financial crisis and no new revenue-generating industry to speak of besides tourism.

The governor said the senators’ rejection of the bill is “irresponsible,” while Tenorio said the senators who rejected the bill are “crazy.”