Tinian commission fires back at Dynasty

The Tinian Casino Gaming Control Commission said it finds it “odd” that Tinian Dynasty Hotel & Casino is complaining when the commission is “doing our job as effective casino gaming regulators,” even as Gov. Eloy S. Inos said yesterday he may inquire about the issue. As of yesterday, there’s still no telling whether or not the commission will approve Dynasty’s longtime suppliers and persons the casino wants to hire to run the CNMI’s only operating casino right now.

Lucia L. Blanco-Maratita, casino commission executive director, said it is “unfortunate” that Dynasty characterizes the commission’s enforcement and regulatory work as “uncooperative” attitude toward Dynasty.

“Perhaps this is due to the practice of non-compliance in previous years and now the current structure of the commission and executive director are taking the necessary approach of ensuring compliance with the Gaming Act in order to protect the public’s interest in the integrity of the regulatory process and of casino operations,” Blanco-Maratita told Saipan Tribune.

She said these public policies are embodied in Part 12 of the Gaming Act and are “designed to contribute to public confidence and trust in the efficacy and integrity of the regulatory process.”

Blanco-Maratita said the commission is doing its job to protect the casino gaming industry “by having a reputable casino with proper controls and operations, a casino with an effective management team such as suitable casino key employees, to protect its assets by ensuring compliance, and protecting Tinian from the ills of having an unregulated or poorly regulated casino industry where persons with unacceptable backgrounds and records of behavior to control casino gaming operations.”

Matthew Masga, chairman of the Tinian casino commission, earlier said they are only properly enforcing the provisions of the Tinian Gaming Act as the U.S. government is scrutinizing the Tinian casino industry—including the casino commission and Dynasty.

Dynasty’s new owner, Hong Kong-based Mega Stars Overseas Ltd., hopes the commission would be more reasonable with their restrictions on casino equipment purchases and hiring that they say are now hampering casino operations. It said some requests for approvals were pending as early as October 2013.

Tinian Dynasty is the biggest private sector employer on Tinian.

Despite their concerns, Mega Stars chief executive officer Cario Hon reiterated their commitment to Dynasty, Tinian, and the CNMI.

The governor, for his part, said it may seem that it’s taking “a little too long” for the Tinian casino commission to decide but it also has to do due diligence investigation.

Inos said his administration could inquire by asking, “Is there anything that we can do to help or facilitate the review of their qualification? I think they call it suitability. It shouldn’t be taking that long but that, again, is my personal opinion.”

Mega Stars complains that the cooperative relationship between Dynasty and the commission “dissipated quickly” soon after the Tinian casino commission’s “restructuring” and the “appointment of an executive director.”

Blanco-Maratita said regulation of the casino gaming industry is especially important “since the only way that we can attain, maintain, and retain integrity, public confidence, and trust is to have a strong system of control and regulation, which seeks to exclude and remove unsuitable persons within the casino gaming operations and establishments.”

“Therefore, just as the Revised Tinian Casino Gaming Control Act requires a finding of suitability in order to grant a casino license (under Section 17), an applicant for a casino service industry license and a casino employee or casino key employee license must also be found suitable in order to be granted a license,” she said.

The suitability standard, she added, means that the person is of good repute with respect to character, honesty and integrity, financial stability, experience in casino and business management, etc.

These suitability requirements also apply to casino service industry providers and casino (and key) employees, she said.

Dynasty and Mega Stars said Dynasty has been ordering and receiving service from their suppliers for over 10 years “without any issues or inappropriate dealings.”

Blanco-Maratita cited other provisions of the Gaming Act, such as Section 34, which sets out the suitability standards and requires the commission to consider the “integrity, responsibility, personal background and financial stability of the applicant, and the general reputation of the applicant with regard to character, honesty and integrity….”

The commission is required by the Gaming Act to use the suitability standards set out under Section 34, including the applicant’s suitability to perform the work he is applying for, in the licensing determination. As in the licensing of the casino service industry enterprises, an investigation and hearing must be conducted, Blanco-Maratita added.

She said for the benefit of the casino and its efficient operations, the Gaming Act allows for certain considerations while the application process is ongoing, such as transactional permitting, provisional licensing, and employment pending notification and licensing of employees.

Blanco-Maratita said it is the casino licensee’s responsibility to thoroughly understand the requirements and flexibility provided under the Gaming Act—and of consequences resulting from non-compliance—and to be guided accordingly.

“This means that if the Dynasty wants to avail of these provisions, it must apply for them using the standards for granting of these temporary licensure/permitting,” she said.

Blanco-Maratita also pointed out that the gaming commission and the executive director are bound by the Gaming Act and must follow its standards and requirements.

“While the commission may have certain discretion, it is not within its discretion to waive any requirements required therein, such as suitability or licensing requirements,” she added.

She reiterated that it is “unfortunate” that Dynasty sees such actions as “uncooperative.”

“It is inaccurate to say that the commission and the executive director, in particular, has not given notice and consideration that suppliers and vendors must be licensed. In fact, I was the one who reminded the licensee of the need for all vendors to be licensed under the Gaming Act. Moreover, as a casino licensee, the licensee is obligated to be thoroughly knowledgeable about the requirements of the Gaming Act; the job of perhaps its compliance officer or casino operations manager—key employees, to be sure,” she added.

‘Not slowing down’

Dynasty said the commission has “slowed down” Dynasty’s hiring process including over 35 staff that have paid $500 each awaiting their Casino Key Licenses and new badge promotions.

Blanco-Maratita said these are employees—currently still employed and working at the Dynasty—who had been promoted to a different job but did not apply for a new employee license.

Under Section 31 of the Gaming Act, a person cannot be employed in a type of work other than what he/she is licensed in.

These employees are those who were performing work that was different from what they were licensed for and who should have applied for a new license within seven days of such promotion or transfer.

“It is well within the discretion of the commission to require termination of these employees for violation of the Gaming Act. However, recognizing that this may have been an oversight, they were required to apply for a new license instead. Again, these employees continue to be employed while the licensing process is ongoing. Therefore, it is inaccurate to state that the commission has slowed their hiring process,” the executive director said.

Mega Stars and Dynasty hired two former Casino Commission chairmen—Martin San Nicolas and Bill Cing—but several weeks later, they still couldn’t start working because of the commission’s background check and investigation.

Blanco-Maratita said these applications especially must warrant a closer scrutiny with respect to the suitability requirements, “whether they are longtime or indigenous Tinian residents.”

She said previous employment by a gaming jurisdiction, even by the Tinian Casino Gaming Control Commission, should not be the only criteria for consideration.

“It is not a simple review but rather a review that must consider such factors dictated and required by the Gaming Act as integrity, responsibility, personal background and financial stability of the applicant, and the general reputation of the applicant with regard to character, honesty and integrity, along with the applicant’s suitability to perform the work applying for, i.e. knowledge, skills, abilities, and experience,” the executive director said.

The review process, she added, must also include investigations into the applicant’s background and a hearing has to be conducted before issuance of such license.

“All of this process is necessary in order to protect the public interest in the integrity of casino operations, an important responsibility of the Tinian Casino Gaming Control Commission.

‘Not licensed’

Blanco-Maratita also clarified that Mega Stars has not been licensed by the Tinian Casino Gaming Control Commission as a casino licensee with the privilege of operating a casino on Tinian.

“Mega Stars has not submitted its casino license application nor has it paid all fees due in order to begin the review process necessary for a finding of suitability before it can be authorized to legally operate the casino. Therefore, the Tinian Dynasty Hotel & Casino is the only licensed casino establishment and operator on Tinian, to the exclusion of Mega Stars,” she said.

The executive director added that participation in the casino industry as a licensee “is a revocable privilege conditioned upon the proper and continued qualification of the licensee.”

Saipan casino

Mega Stars’ Hon said they have not picked up an application for an exclusive Saipan casino license. So far, he is not saying whether they would actually pick up and submit an application.

The governor said there have been individuals who’ve picked up the application packet but they only listed their individual names, not the companies they represent or are dealing with.

Yesterday, the governor said a group of Korean investors inquired once again about the deadlines. He also cited investors from Hong Kong.

The deadline to turn in an application coupled with a nonrefundable $1 million fee is on April 21, Monday.

Payment or deposit into an escrow of a $30 million casino license fee representing two years is due by May 5.