The House Committee on Gaming in the Northern Mariana Islands is working on a bill that would dismantle the Commonwealth Casino Commission (CCC) and reassign its regulatory powers to the Commonwealth Lottery Commission. The proposed legislation aims to address current operational challenges within the CCC while also expanding gaming opportunities in the Commonwealth.
Rep. Ralph N. Yumul, chair of the House Committee on Gaming, confirmed that the panel is conducting a thorough review of Public Law 3-60, which established the lottery commission, and Public Law 18-56, which legalized casino gaming in Saipan. The primary goal of the proposed bill is to reinforce the authority of the lottery commission by granting it enforcement capabilities currently held by the CCC. Yumul, cited by Marianas Variety, explained that once the bill is enacted, the casino regulatory body “will not be in existence anymore because… the lottery commission will take some of the enforcement powers of CCC.”
Expanding Gaming Options in the CNMI
The legislative effort goes beyond restructuring regulatory oversight. Yumul emphasized that the committee is considering new gaming opportunities, including internet gaming, as an alternative to traditional land-based casinos. Acknowledging local opposition to physical casinos, he noted that the Commonwealth of the Northern Mariana Islands (CNMI) could position itself as a hub for offshore gaming. However, the proposed bill will not directly legalize internet gaming; instead, it will grant the lottery commission the discretion to determine which forms of gambling are permissible within the Commonwealth.
“It will be up to the lottery commission to decide which types of gaming can be allowed in the CNMI,” Yumul stated. Additionally, the committee is evaluating gaming models in the United States to identify regulatory frameworks that could be adapted to the CNMI’s market.
Challenges Facing the Commonwealth Casino Commission
Yumul highlighted concerns over the CCC’s current structure, stating that its close association with the only casino licensee in the CNMI has affected its ability to function as an independent regulator. The CCC has been struggling financially, particularly since the closure of Imperial Pacific International’s (IPI) casino operations in March 2020 due to the Covid-19 pandemic. The commission has been unable to collect its annual regulatory fee of $3.15 million, resulting in office closures, layoffs of over 50 employees, and ongoing financial instability.
Meanwhile, Commonwealth Casino Commissioner Chair Edward C. Deleon Guerrero and Commissioner Mario Taitano have stated they will reserve comments until a draft of the bill is made available for review.
Developments in IPI Asset Sale
In related news, the District Court for the Northern Mariana Islands, under the supervision of bankruptcy judge Robert J. Faris, recently approved a plan for the sale of IPI’s unfinished Garapan hotel casino and other real estate assets. The bidding process has set a minimum price of $10 million in cash, with an initial “stalking horse” bidder to be selected before an auction takes place. A sale hearing is scheduled for March 25.