On the last day of March two casino bills were presented by House Speaker Froilan C Tenorio in Saipan, part of the Commonwealth of Northern Mariana Islands (CNMI). In 2007 the local Saipan population voted against casinos on the island even though the neighbouring island of Rota voted in favour and the island of Tinian has a casino operating at the Tinian Dynasty Hotel and has licensed other casino investors. House Bill 17-56 covers 68 pages and would allow three licences to be issued – two to foreign investors and one to a Northern Marianas descent corporation.

The second casino bill, HB 17-55 covering 40 pages, provides for the regulation and control of gambling on Saipan. It also allows for the appropriation of some casino revenue (10% of gross gaming revenue in addition to other taxes imposed) to be distributed by government in the following amounts: 2.5% to Rota; 2.5% to Tinian and Aguiguan; and 5% to Saipan. The remainder would go to the Northern Mariana Islands Retirement Fund to reimburse the money owed by the CNMI government, until the debts to the pension fund are paid.

The Saipan Casino Control Act of 2010 would impose a minimum US$500,000 investment by foreign investors for the construction of a 5-star hotel casino complex. A non-refundable application fee of US$250,000 must also be paid for the granting of a casino licence. Only first class Las Vegas style projects that include other facilities and entertainment will be considered for casino licensing.

Rota and Tinian are still struggling to get new casino developments up and running. One problem has been the introduction of US immigration laws into the CNMI and the absence of final regulations from the US Department of Homeland Security (DHS). In January Phillip Mendiola-Long, executive vice president of Bridge Investment Group-CNMI operations, stated that his company is not pulling out of its Tinian casino project but that federalization has meant the inability to hire Chinese construction workers, causing consequent delays. The company hired a Chinese construction group in 2008 to build the Tinian casino development.

On Rota the economic crisis caused a rethink of licensing fees and minimum investment. In a decision taken on 6 March last year by the Rota Casino Gaming Commission the non-refundable licence fee was reduced from US$100,000 to just US$10,000 and the minimum investment is now at US$5 million and not the US$25 million originally planned. If Saipan finally passes a casino law it will be just a first step on an arduous road to obtaining the casino revenues intended to boost the local economy. (E-04.13.10)

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