Tinian Mayor unhappy about possible competition

NORTHERN MARIANAS’ CASINO RIVALRY

As the law stands at present in the Northern Mariana islands of the Pacific, only Tinian can legally have casinos. The Tinian Dynasty Hotel and Casino has been operating since 1998 and there are up to five licences available. Tinian Marine Resort and Bridge Investment Group have recently been granted licences to develop casino projects and two other companies have signed agreements.

Tinian Mayor Jose San Nicolas is just back from a trip to China where he accompanied Bridge Investment Group to meet suppliers and a major travel agent. The trip was funded by the local government in order to check the factory where the construction materials will be produced and the agent who will organise trips to Tinian for Chinese tourists. The 300-room resort casino has an initial investment of US$100 million and is expected to contribute monthly tax revenue of US$400,000 to the government. The gaming industry revenue projections are some US$8.5 million annually, of which Tinian gives 5% to the Commonwealth general fund.

Another member of the island Commonwealth, Saipan, is pressing to be allowed to operate casinos. The local initiative would create a Saipan Casino Commission to oversee casino operations under a sole licensee, NMD Investment Corp. NMD would consist only of people of Northern Marianas descent and all casino revenues would be used for the benefit of Saipan and the Northern Islands. The initiative was drafted by CNMI Indigenous Entrepreneurs Inc, which claims that casinos on Saipan would benefit the whole Commonwealth by enhancing indigenous livelihoods and boosting the economy.

Mayor San Nicolas is concerned that the proposals for Saipan would undermine the Tinian economy and has called the initiative a duplication that would hurt Tinian. He also said that it was easier to keep criminal activity out of the Tinian casino industry but that on the larger island of Saipan the introduction of casinos would result in increased criminal activity, so voters should reject the proposition. A petition to allow casinos on Saipan would need the signatures of 20% of registered voters in order to be placed on the ballot. It would then need the approval of at least two-thirds of voters to be ratified in the November 2007 mid-term election.
(E-09.25.06)

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