‘Dynasty could face civil penalties, loss of casino license’

The CNMI’s only operating casino could face civil penalties and the loss of its driving revenue—the casino—with the cancellation or suspension of its casino license if it continues to refuse to submit required documents to the Tinian Casino Gaming Control Commission.

Lucia Blanco-Maratita, executive director for the commission, said that Tinian Dynasty Hotel & Casino needs to submit audits every year—something they haven’t done since 2007.

Section 28 of the Tinian Gaming Act enumerates the grounds for cancellation or suspension of a casino license. These include violating the Act, being convicted of an offense, failing to comply with any terms or conditions of the agreement, refusing or failing to comply with any direction given in writing by the commission’s executive director, failure to supply information required under the Act, and/or failure to discharge financial commitments, becoming bankrupt, or taking advantages of the laws force.

Blanco-Maratita said that Tinian Dynasty’s owner, Hong Kong Entertainment (Overseas) Investments Ltd., and majority shareholder, Mega Stars Overseas Ltd., are responsible for the casino hotel’s fate.

“Their new owners have to submit to suitability investigations; they have not because they refuse to submit remaining requested documentations, which have a bearing on their suitability,” Blanco-Maratita said. “We cannot complete their license application process.”

Under Section 17 of the Tinian Gaming Act, the suitability of a casino licensee and other persons must be investigated to see if they are suitable persons to be associated or connected with the management and operations of a hotel-casino complex or casino.

“The Gaming Act requires anyone who wants to operate or invest in a casino to be licensed, to be investigated to determine whether that person is suitable in terms of his honesty, integrity, financial stability, sound and stable background information—meaning no ties to undesirables,” Blanco-Maratita said.

“While Mega Stars submitted its application and an initial investigative fee deposit, they have not submitted all the necessary information being requested, regusing to pay required fees when required to do so, and just plain refusal to cooperate,” she added.

When Mega Stars first came to Tinian in July 2013, TCGCC told them that they had to apply to be found suitable before investing. Maratita said that since then, Mega Stars has been resisting the gaming commission.

Mega Stars also applied for the exclusive casino license on Saipan, eventually losing the bid to Best Sunshine International, Ltd.

“They are refusing to cooperate with the commission, allows unlicensed persons to work, refusing to supply information that have been requested, to pay required fess. It seems there’s a culture of non-compliance and non-cooperation with regulatory authorities,” Maratita said.

She said they could faces charges that includes penalties for violation of the Act up to $20,000 and from $1,000 up to $50,000 for other violations.

“Any entity that wants to enter into the gaming industry must comply with the Tinian Gaming Act, there is no other choice. It is not enough for a business to get a CNMI business license to be able to provide services to the casino or operate a casino or work in the complex. They must also apply to the commission to be found suitable. Suitability is the cornerstone of anyone desiring to do business in the casino industry.”