CNMI Wants to Raise Casino Fines

Lawmakers in the Commonwealth of the Northern Mariana Islands are considering increasing the maximum fine that can be imposed on casinos that break the law. The current maximum fine is only $50,000.

House bill would raise max to 0K

The House of Representatives in the Commonwealth of the Northern Mariana Islands has proposed legislation that would raise the maximum fine for casino violations. There is only one casino in the commonwealth, Imperial Pacific on the island of Saipan; fines for violations of gaming regulations currently cannot exceed $50,000 per violation.

“A $50,000 fine could represent less than the revenue the casino wins on one single bet. As such, that amount is in no way sufficient to serve as a deterrent to improper conduct,” said Rep. Edwin K. Propst, who sponsored the bill. “While a fine of that magnitude could be devastating in other industries, such a fine is a pittance when one considers that the casino regularly takes—bets of over 10 times that amount.”

According to the Saipan Tribune, the House Gaming Committee looked versions of the bill that would raise the ceiling to $5 million and $800,000. Another version would increase the fine to $200,000. The bill now goes to the House floor for a vote.

House Gaming Committee Chairman Rep. Joseph Deleon Guerrero said an $800,000 penalty ceiling would be the largest amount that could be imposed on a casino in the United States; the Commonwealth of the Northern Mariana Islands is a U.S.-controlled territory.

“We changed the amount from $5 million to $800,000. The current law is $50,000 but that $50,000 is not cumulative. We propose to make it $800,000. It doesn’t mean that it’s only $800,000—there are smaller fines for lesser offenses, but for severe offenses it will be $800,000 per violation,” Guerrero added. “If this bill becomes law, it should act as a deterrent, but the biggest deterrent would still be suspension or revocation of the license.”

According to the Asia Gaming Brief, the fine could be imposed on players, licensees, vendors and employees of Imperial Pacific International. In addition, reported CalvinAyre.com, Guerrero’s proposed measure seeks to clarify the CCC’s powers and amend the current law that allows casino commissioners to serve two terms instead of the current one six-year term.

The most recent report from AGB indicated that the CCC would recommend a maximum fine of $250,000, with Guerrero calling $800,000 “excessive.”

“We looked at Nevada, New Jersey, Singapore, Macau, Australia, and South Korea for how much they charge for personal violation versus a company violation,” he said. “We gave a recommendation of $250,000 as a ceiling per violation.”

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