Clash of views on number of Saipan casino licenses

While there is still a big question whether or not an exclusive Saipan casino license will ever be granted and to whom, some lawmakers led by Rep. Ralph Yumul (Ind-Saipan) said yesterday they are eyeing floor amendments to a bill repealing and reenacting the casino law to allow for the granting of more than one license. Gov. Eloy S. Inos, meanwhile, briefed retirees and former defined benefit plan members last night about the casino license application process, as well as the many “distractions” that snag the restoration of deferred 25 percent pension and payment of withdrawn contributions’ interest, among other things.

Concerned citizen Leila Staffler, moreover, said yesterday afternoon they now have some 3,700 signatures from individuals who want to put the Saipan casino question on the ballot in the November election, a number much greater than the estimated 3,250 required or 20 percent of registered voters.

Gov. Eloy S. Inos addresses retirees and former members of the defined benefit plan on the status of the Saipan casino license application process and the planned restoration of deferred 25 percent pension and other obligations, at the Minachom Atdao Pavilion in Susupe last night. (Haidee V. Eugenio)

Staffler said they target 4,500 signatures by the time they submit the petition to the Office of the Attorney General on July 2. They are aiming that number as precautionary measures just in case the OAG finds issues with some of the signatures.

“The whole purpose is to give the people a chance to decide, in the privacy of a voter’s booth, what they think is best for the island,” Staffler said. For those who want to sign the petition, she said she can be reached at 989-6003.

There are two investor applicants vying for a license to exclusively develop a minimum $2-billion integrated casino resort on Saipan. They are Marianas Stars Entertainment Inc. and Best Sunshine International Ltd.

Marianas Stars is now suggesting the granting of two licenses instead of one, but Best Sunshine said it is too late to change the rules of the game. There is also now an extended temporary restraining order stopping the CNMI government from either denying or approving a casino license, following Marianas Stars’ lawsuit and request of a TRO.

2 or more licenses

The House Ways and Means Committee chaired by Rep. Tony Sablan (Ind-Saipan) did not take a position yesterday on House Bill 18-195, which seeks to repeal and reenact the Saipan casino law, but voted unanimously instead to report the bill as is to allow the full House of Representatives to act on it.

Yumul and other members were initially poised to suggest amending the bill on committee level to allow more than one Saipan casino license that can be granted, although there were other proposed amendments discussed such as making the commission members full-time government employees.

“Since we’re talking about revenue-generation, why not consider multi-license? Strike out the word ‘exclusive,’” Yumul later said, adding that members respect the chairman’s position to allow the full House to decide on the bill.

Sablan said those who are not members of the Ways and Means Committee could also offer floor amendments if they so choose once the bill gets to the floor. The next House session could be next week, depending on whether the same committee could pre-file the fiscal year 2015 budget bill by then.

But had the proposed amendment on the number of licenses been put to a vote yesterday, there could have been a deadlock of 5-5 between Ways and Means Committee members present wanting to retain an exclusive license and those who are open to multiple casino licenses on Saipan. It was not clear whether Speaker Joseph Deleon Guerrero (Ind-Saipan), who was observing the committee meeting, could break such a deadlock had it happened.

The governor, when asked about a proposed floor amendment to HB 18-195, said the CNMI would be taking a chance on having more than one casino license.

“I mean that’s fine but will we have takers? Two takers? I guarantee probably only one,” he said.

The governor and some lawmakers showed up at a 5:30pm meeting of retirees and former DB members—about 100 of them—at the Minachom Atdao Pavilion in Susupe.

Gregorio “Kazuma” Camacho, co-organizer of the meeting, said retirees and former DB members have to unite to protect their interests. He said they invited the governor and lawmakers to update them on the status of the Saipan casino license application, as well as answer their questions about the restoration of retirees’ deferred 25 percent pension and the payment of interest on DB contributions withdrawn last year.

“We also want to express our support to having casino on Saipan. One is enough,” he said.

The governor, in addressing retirees and former DB members last night, said the TRO, the referendum petition, the “No to casino” signs and lack of action on HB 18-195, among other things, have proven to be “distractions” to the award of a casino license that would pave the way for the payment of retirees’ 25 percent pension and DB members’ retirement contribution interests, as well as subsidy to lower utility rates.

Inos, in an interview later, said his main message is that allowing casino operations on Saipan will generate fresh revenues needed to meet so many of the CNMI’s financial needs.

“Yes, unless I have alternatives which I don’t have. But if somebody else has a viable alternative then I’m all for talking about what we can do. But right now, it’s the only thing that’s on the table,” he told reporters.

The governor said it doesn’t have to be one license “but I don’t think we will be able to get the value with several (licenses)…It’s just business. They want to open it up and make it two—they’re not going to come in and invest $2 billion but I’m saying this because they haven’t said anything. They just say two licenses. So what do you mean? I like to see. Maybe two licenses but maybe let’s double up the ante,” he said, referring to doubling the annual casino license from $15 million to $30 million for each of two casino license holders.

He said Marianas Stars met with him some two weeks ago wherein the investor group broached the subject of granting more than one license.

The governor said he told Marianas Stars that changing rules can’t be done in midstream, the same statement he had when first asked on June 15 about the idea of two licenses.

Former representative and former lieutenant governor Diego Benavente, now a retiree, said going from one casino license to more than one in the middle of an application process poses a lot of problems.

“Is this nothing more than an attempt to disrupt the process? Block proposed investments? If they change the number of licenses to be granted, will all of them be required to put up a minimum of $2 billion still, and pay a $15 million annual license fee still?” Benavente said.

He added that having 4,000 additional rooms—2,000 guest rooms each per casino investor—won’t be feasible because Saipan’s infrastructure won’t be able to support that. He said one 2,000-room hotel could bring in some 400,000 tourists that could add to what the CNMI receives right now on average for a total of 800,000 a year.

“At one time, the CNMI was able to receive 800,000 tourists a year. I would be comfortable with that because the CNMI was able to handle that many tourists,” he added.

Inos also told reporters last night that floating a pension obligation bond could be a last resort, but reiterated that a POB flotation entails interest payment.

The governor said floating a POB is not expected this year unless the “need arises.” As to the amount of bond to be floated when it had to be done, he said it’s a “moving target.” Some figures earlier discussed were $60 million, $80 million, and $120 million.”