The long chain of Mariana Islands, approximately midway between Japan and Australia, ends with the island of Guam at the southernmost point. The Commonwealth of the Northern Mariana Islands (CNMI) includes the islands of Saipan, Tinian and Rota. Guam and the CNMI, an unincorporated organized territory of the United States and a commonwealth in political union with the United States respectively, at present are trying to resolve issues over gambling.

The Guam Electoral Commission (GEC) was today in a court hearing over the ‘Proposal A’ gaming initiative. A writ of mandamus was filed against the GEC asking the court to stop it from certifying votes on the gaming proposal. The anti casino group also charge that the pamphlets supplied about the initiative by the GEC to local residents did not have the correct information. However, Proposal A, also titled ‘Better jobs for Guam,’ will not be removed from the 5 January ballot following the ruling by Justices of the Guam Supreme Court that the delay in bringing the action to court was inexcusable and prejudicial.

The GEC was said to have abused its discretion is supplying an initiative analysis that was not impartial. The court also commented that the GEC had failed to consider the tax implications of the measure, which exempts slot machine income from gross receipts tax and excise tax. The Justices ruled that under the law the court could not invalidate an election despite the flawed initiative.

In the CNMI the casino debate continues. In recent ballots the residents of Saipan voted down a proposal to allow casinos on the island and Rota residents voted in favour. The island of Tinian already has casino legislation in place and is looking to expand the industry from the present one casino facility. The issue has not vanished on Saipan, with controversial moves to allow video lottery games.

A bill to appropriate US$500,000 for the Rota casino industry was passed last week by House representatives. The measure will now go before the Senate. The money is to begin a road construction project, although much more would be needed to acquire private property under the scheme. A casino industry is expected to improve the Rota economy, with application fees up to US$100,000 and annual license fees not exceeding US$200,000. A 5% tax on GGR will also be collected. (E-01.02.08)

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