Where will $2 million casino application fees go?

While the amended Saipan casino law only indicated that any nonrefundable application fee of $1 million for every casino license application is reserved for the operation, personnel, and all other expenses of the Commonwealth Casino Regulatory Commission for the first year, Gov. Eloy S. Inos gave specific possible uses of the total $2 million the government received from two applicants.
The governor said portions of it will go toward the investigation and review process, along with organizational costs for the commission, the drafting of regulations, and the training of enforcement personnel, among other things.

Inos said the government will hire an investigator with expertise in probing casino operations. The investigator could be based in Hong Kong, Macau, or mainland China.

“We’ll hire somebody to do it. Somebody reputable, experienced,” the governor said in an interview yesterday.

At this time, however, there is no particular company hired for this job, even as the applicants have until May 5 to deposit $30 million in escrow and the Lottery Commission has until June 19 to approve or reject the applications.

The $30 million will be the source of funds to restore retirees’ deferred 25-percent pension.

The governor was scheduled to meet with members of the Lottery Commission yesterday afternoon in preparation for the panel’s first formal meeting to review the applications. The Lottery Commission gets to decide which of the applications will be approved for an exclusive license to develop a casino resort on Saipan.

Each of the members of the Lottery Commission—the attorney general, the Finance secretary, the Commerce secretary, and the Public Safety commissioner—won’t get additional compensation for being part of the application review process.

The Lottery Commission is separate from the Commonwealth Casino Regulatory Commission, which takes over after a winning investor is picked.

The governor said because of the non-disclosure clause, the government won’t be able to share the submitted applications unless the applicants themselves decide to disclose part or whole of it.

The two investor groups that turned in application are Marianas Stars Entertainment Inc. and Best Sunshine International Ltd.