Saipan’s Lottery Commission has voted unanimously to award the island’s sole casino license to Best Sunshine International, one of two bidders for the US billion resort authorized by the legislature earlier this year.
A report in the Saipan Tribune says the commission followed the recommendation of US-based consultants the Innovation Group and B2G Global Strategies in rendering its decision, which the newspaper describes as “conditional” and subject to Best Sunshine and the commission reaching a “casino development agreement.”
The law requires a minimum of 2,000 hotel rooms as part of the $2 billion mandate. The license also entails a payment of $15 million a year in lieu of gaming tax. The negotiations are expected to begin shortly.
Terence Tay, Best Sunshine’s chief operating officer, said he was “overjoyed” and “overwhelmed” by the decision and is looking forward to reaching an agreement.
“I just hope we can wrap it up fast,” he said. “Now what really stands between us and the integrated resort is a lot of work in between, a lot of support from the people.”
Casinos have been a divisive issue on Saipan and were rejected several times over the years both by the legislature and by the voters. Supporters see casinos as a way to revive Saipan’s ailing economy by boosting foreign tourism. But the bill that finally succeeded this year was prompted more by a government fiscal crisis, and it’s reported that the $30 million Best Sunshine was required to deposit in escrow will be used immediately to restore cuts to pension benefits.
The casino will be the second in the US Pacific territory. The losing bidder, Marianas Stars, purchased the failing Tinian Dynasty Hotel & Casino on the neighboring island of the same name last year and is renovating and expanding it.
Marianas Stars had proposed two licenses for Saipan, and when the government rejected the idea, the company sued to halt the award, claiming the process was seriously flawed, biased in Best Sunshine’s favor and possibly corrupt.
Responding to the news of the award a spokesman for Marianas Stars told the Tribune the company is “obviously disappointed with the outcome, but now we move on and make sure that Tinian Dynasty stays economically viable.”
Best Sunshine and Marianas Stars are both based in Hong Kong.
