A leading Saipan lawmaker was expected last week to introduce a bill legalizing casinos on the western Pacific island, the fourth try in as many years to enlist gaming-driven tourism in the cause of bailing out the U.S. territory’s cash-strapped government.
Ralph Demapan, floor leader of the House of Representatives, said legislators must find ways to generate new revenues to reverse cuts in the territory’s pension plan for retirees and fund other public services.
“Time is of the essence,” he said. “This is a major revenue-generating bill that will help restore that.”
The last attempt to legalize casinos came in June 2013, when the House passed a bill, only to see it rejected in the Senate, where the new bill is also expected to face resistance, although Senate President Ralph Torres, who used to be lukewarm on the issue, is now echoing Demapan’s belief that the government’s growing obligations require new revenue sources.
Lawmakers recently approved video lottery and other forms of machine gaming, but casinos have been a divisive issue, opposed both by locals concerned about social harm and the operators of two casinos on the neighboring islands of Rota and Tinian concerned about competition.
Unlike the previous bills, the current one authorizes only one license. Bidders will have to pay a $1 million fee to apply. The winner will be required to pay US$30 million up front and $15 million every year thereafter for the 25-year duration of the license. A tax on gross gaming revenue and other business taxes and fees also will apply.
