Palau lawmakers on casino fact-finding mission in NMI

Palau is once again looking to the CNMI’s experience as the independent island nation deals with its own casino legalization bill that passed its House of Delegates on first reading last week. A team of Palau lawmakers is on a fact-finding mission to Saipan, including a meeting yesterday with the Senate, followed by a meeting with the House of Representatives this morning.

“We told them it’s not easy to sell the idea. They need to have compelling public interest to sell the idea,” Senate Vice President Victor Hocog (R-Rota), one of the three CNMI senators who received the Palau lawmakers yesterday, told Saipan Tribune.

Senate President Ralph Torres (R-Saipan) and Hocog separately said that like the CNMI, Palau’s pension fund is also having great financial difficulty, while its utility rates are also high and the minimum wage still pegged at $3.50 an hour.

Within weeks this year, the CNMI House and Senate passed a bill legalizing casino on Saipan. In August, the CNMI government awarded an exclusive license to Best Sunshine International Ltd. to develop a $3.14-billion integrated casino resort on Saipan. The license term is up to 40 years.

In Palau last week, the House of Delegates passed—but only on first reading—an exclusive casino license valid for 50 years with an annual license fee of $16 million on the second through the 48th year.

Torres said he only learned of the Palau delegation’s fact-finding mission during their courtesy visit to the CNMI Senate yesterday. Besides Torres and Hocog, also present was Sen. Pete Reyes (Ind-Saipan).

The six-member Palau lawmakers’ team is led by Delegate Lucio Ngiraiwet, chairman of the Committee on Foreign Affairs and State Relations.

“They asked us questions, including how we considered a minimum amount of investment, the role of Retirement Fund issues, how things have changed. They also have problems with their retirement now, their utility rates are high, and their minimum wage is still $3.50 an hour,” Torres said.

Torres said he also recommended that Palau lawmakers learn more about “integrated resort” with casino.

About two years ago, Torres voted “no” to a Saipan casino legalization bill. Citing the need to address mounting CNMI financial problems such as the retirement fund, Torres voted “yes” this year to allow casino operation on Saipan—touted as a major revenue-generating measure.

“I’m glad that other islands like Palau are trying to address their current issues. If casino is the venue, then so be it. They are now looking at the CNMI as a good model. I also suggested to them to protect their people, address their long-term issues,” Torres added.

Hocog, for his part, said the Palauan lawmakers asked them about the issues that led to the passage of an exclusive Saipan casino license bill. He said they were also asked how they managed to pass the Saipan casino bill, and what the public’s reaction was.

“Although at a smaller scale, the delegates said Palau needs at least $8 million more every year to fund its pension program. That’s money they don’t have. Some lawmakers hope that having a casino in Palau will help Palau address their retirement problems, too, just like how the CNMI is addressing its retirement fund issues,” Hocog said.

He said the big difference between Palau and Saipan is that Palau still has lots of available public lands, whereas Saipan has limited lands.

“So now, the biggest challenge for the Saipan casino developer is the availability of lands. We don’t have much lands available,” Hocog added.

Casino gaming has long been legal in the CNMI’s two other major islands of Tinian and Rota. As of today, only Tinian Dynasty Hotel & Casino is operating in the CNMI, while Best Sunshine has yet to even lock in lands on where to build its integrated casino resort on Saipan.

Palau’s Island Times reported that almost all members of the House of Delegates signed on to a bill that will permit and regulate casino gambling in Palau.

Palau’s House Bill No. 153-15S was introduced by 13 House of Delegates members led by Speaker Sabino Anastacio.

The bill provides for the establishment of the Palau Gaming Commission, which is tasked to, among other things, issue no more than once casino license.

Under the bill, the casino license fee is $50 million for the first year of the term of the license to cover the first year, 49th and 50th year of the casino license fee. The casino license holder is required to pay $16 million in license fee annually beginning the second year of the license, and on through the 48th year.

Pro-casino lawmakers eye high-end tourist markets for the proposed Palau casino.

Palau lawmakers are planning to conduct public hearings on the bill.

Palau President Tommy Remengesau first vetoed a casino bill during his previous term, in 2003. In 2009, then Palau president Johnson Toribiong also vetoed a casino bill.