Proposal Could End Guam Festival Gambling

Guam legislators unanimously approved a bill to prohibit casino gambling at the annual Liberation carnival. Now Governor Eddie Falco has a few more days to approve or veto the bill, which closes a loophole in Guam law. A Falco veto would send the measure back to the legislature, which likely would override it.

Lawmakers in Guam on May 26 unanimously passed Bill 50-34 that would ban casino-style gambling at the island’s annual Liberation carnival and at village fiestas. Governor Eddie Falco has 10 days, excluding Sundays and holidays, to act on the measure. The bill would close a loophole in Guam law that has exempted gambling operations during fairs and festivals.

If Falco vetoes the measure, it would go back to the legislature where an override would be expected. The bill’s co-sponsor, Speaker Benjamin Cruz, said, “As it relates to a potential override, it’s too early for me to speculate on Governor Calvo’s reasons for a veto. If he chooses that course of action, I will consult the bill’s author, Senator Telena Nelson, and our colleagues before taking appropriate steps.”

Nelson said very little is known about casino operations during the annual Guam Island Fair Liberation Day Carnival. “Who is in control of the casino? We could never get a straight answer. Where are the detailed expenditure reports? Where are the documents indicating the taxation and revenue? Little to nothing is known about the casino.”

Nelson added the measure is not intended to tell people how to spend their money, but it would remove an activity that harms families and society. “I want it to be known that the consequences of gambling do not remain in the casino, it does not remain in the building and it does not remain on the grounds. This behavior leaves the casino and enters the home,” she said.

The Mayors’ Council testified against the bill because they said the Liberation festival, including fireworks and a carnival, depends on revenue generated by casino operations.

Cruz said tax revenue from a legitimate casino could raise significant revenue for the local government, similar to Saipan. “Saipan got $200 million last year from its casino in taxes. That would be the easiest budget I could put together. Everybody would get what they wanted. But at the expense of what?” he said, noting Guam voters have opposed ballot initiatives to approve gambling on several occasions.