E-gaming licenses out soon

Electronic gaming licenses could be issued as early as this week or five months since this type of gaming became law, even as controversies related to the Saipan exclusive casino license application process continue that include Best Sunshine International Ltd.’s objection to Marianas Stars Entertainment Inc.’s presentation today and a second lawsuit over the casino law.

Gov. Eloy S. Inos said yesterday that electronic gaming licenses could be issued in the “very immediate future…maybe this week.”

The governor’s fiscal year 2015 proposed budget already includes $2.5 million in projected revenues from electronic gaming fees.

There are at different types of licenses that are required for electronic gaming to finally get off the ground—electronic game license, which is $2,500 a year, or 15 percent of net gaming revenues paid monthly; electronic game site operator license, which is $100,000 annually, or 1 percent of net gaming revenues, whichever is greater; and electronic game supplier license.

Also required are electronic game operator and electronic game supplier employee licenses.

“It’s a process…It’s a controlled industry. You just don’t buy from underground sellers because the machines must have integrity. You just don’t buy it from an underground [supplier], from anybody,” the governor said yesterday.

Inos said this is part of the due diligence process.

Electronic gaming operations will be at Kanoa Resort in Susupe and Mariana Resort & Spa in Marpi.

There have been concerns that the government has been slow in issuing electronic gaming licenses.

Rep. Tony Sablan (Ind-Saipan), author of the electronic gaming bill that became law, said yesterday he has been receiving such concerns from individuals and investor groups.

“The investors are anxious to their license because the investment is substantial. They would have wanted to operate sooner rather than later. If you’re the investor, you would want to recoup your investment as soon as possible,” Sablan said.

The government also recently amended the electronic gaming regulations to, among other things, raise the cap on the number of electronic game licenses active in a single electronic gaming facility—from 100 to now 175. But the cap on the number of electronic game licenses remains at 1,000 annually.

Electronic gaming machines are allowed only in hotels on Saipan with at least 100 rooms or, if they have fewer than 100 rooms, should be attached to a golf course.

Casino

Meanwhile, readmitted Saipan casino applicant Marianas Stars is scheduled to present portions of its business plan at 10am today before the Lottery Commission and members of the public on Capital Hill.

This presentation is one of two conditions that the commission imposed in reconsidering its earlier decision to reject Marianas Stars’ application. The other one is depositing $30 million in escrow by May 19 at 3pm. It was learned that the $30 million had been rewired on Friday.

Best Sunshine is not at all happy with the Lottery Commission’s decision to reaccept Marianas Stars. It has asked the commission informally to not allow Marianas Stars to go ahead with its presentation today.

Meanwhile, a second lawsuit over the Saipan casino law was filed yesterday by citizen Glen Hunter, days after attorney Ray Quichocho did the same.