Clock begins for Saipan casino investors

Gov. Eloy S. Inos signed yesterday a bill amending the original law that legalized casino gaming on Saipan, setting off the clock for interested investors to apply for an exclusive casino license on Saipan for a nonrefundable application fee of $1 million and subsequent deposit of $30 million in license fee “by May 5, 2014.”
Inos and Lt. Gov. Jude U. Hofschneider issued a request for proposals yesterday for a casino resort developer license for 40 years.

The qualified investor needs to invest a minimum and initial $2 billion, inclusive of the casino and hotel-resort with at least 2,000 guest rooms.

Qualified applications will be evaluated on three broad factors: financial structure, 40 percent; proposed business plan, 40 percent; and benefit to community, 20 percent.

The governor signed House floor leader Ralph Demapan’s (Cov-Saipan) House Bill 18-182, House Draft 6 into Public Law 18-43 yesterday afternoon, a day after the Legislature transmitted it to the governor the bill.

PL 18-43 amends PL 18-38, the original bill legalizing casino gaming on Saipan.

The new law contains 12 sets of issues that address the problematic parts of the original Saipan casino law, including provisions on tax rebate, timelines, and where the casino-related money would be used.

“With the adoption of this bill, the shortcomings of Public Law 18-38 are addressed and we have established a more balanced gaming program for addressing the many financial issues facing the Commonwealth,” Inos told House Speaker Joseph Deleon Guerrero (Ind-Saipan) and Senate President Ralph Torres (R-Saipan) in his April 1 transmittal.

The governor thanked the speaker, the president and members of both houses for their cooperation in quickly adopting both HBs 18-182 and 18-179.

“This joint effort between the Legislative and Executive branches of government in the establishment of this important public policy is to be commended,” Inos said.

‘Mixed feelings’

The governor said he realizes that there are mixed feelings on the establishment of gaming in the CNMI.

“…but in light of current financial constraints; the need to address retiree obligations; and provide for expansion of our economy, I sincerely feel that this is the best alternative,” he said.

At a Republican Party kickoff rally on March 23, the governor assured that retirees will be able to receive, within 90 days, their 25 percent pension that was cut last year.

It was the first time that the Senate passed a Saipan casino bill from the House in at least four years.

Previously, casino gaming is legal only on Tinian and Rota. Saipan voters also twice rejected casino gaming on Saipan; the last vote was in 2007.

But the governor emphasized the need to take adequate steps to regulate the activity.

He said in the coming weeks, they will be thoroughly reviewing proposals for gaming licenses “to ensure that we select licensees who will comply with the high standards of gaming that we are hoping to establish to expand our tourism market.”

“I realize that the people of the Commonwealth are relying on our agencies to protect their interest in this expansion of gaming and we will do our best to lay the foundation for proper oversight and control,” Inos added.

The governor earlier said he expects investors from Hong Kong and Korea to participate in the application process. These include Mega Stars Overseas Ltd., the new owner of Tinian Dynasty Hotel & Casino.

Tinian Mayor Ramon Dela Cruz is worried that Mega Stars will hold off plans to expand its investments on Tinian once it applies for a license to operate a casino on Saipan.