Saipan eyes casinos, video lottery to plug pension hole

In the face of mounting financial obligations, the government of the Northern Marianas, a Pacific island chain near Guam, is looking at raising revenues through casinos and other gaming activities. Governor Eloy S. Inos is considering various options including a casino even though Saipan voters have disapproved of such projects previously.

 

There are casinos located on the islands of Tinian and Rota however there are none on  Saipan, the most densely populated island where the capital is located. 

For next fiscal year, the Commonwealth of the Northern Mariana Islands (CNMI) projects a budget of about $137.4 million, $14 million more than what the Inos administration submitted for the lawmakers’ consideration because of a tentative settlement reached in court relating to the Northern Marianas pension fund.

The settlement comes after a retiree sued the government and the pension fund, which is projected to run out of money by March 1 next year. 

The CNMI government, Inos said, recognizes that it will need a “major infusion of resources” and in the face of this and other obligations, there is a growing tide of support for casinos and other forms of gambling that will generate the much-needed revenues.

“We are going to have to do more than just normal increase or accretion in the economic growth,” Inos said.

A bill to allow casinos to operate on Saipan passed through the House by a vote of 13-7 however, while the administration is building up support, the CNMI Senate has yet to act on the bill.

“Tinian did it. Rota did it. Saipan should also do the same,” said Rota Mayor  Melchor Mendiola.

A previous bill to have a casino on Saipan met staunch opposition from the CNMI Senate and from voters. 

Last year, a drive to gather signatures to place the Saipan casino proposal on the ballot fizzled as it only gathered 497 signatures - not even half of the required 2,590 signatures, or 20 percent of registered voters,  needed. For a bill to be ratified, it has to be approved by at least two-thirds of voters.

Anticipating an uphill battle with the casino, the CNMI government is also considering introducing limited video lottery gaming on Saipan.

A proposal shared with the CNMI Legislature is looking at placing 200 video lottery terminals in select hotels with over 250 rooms. The aim is to appeal to tourists rather than locals. 

Hotels on Saipan with at least 250 rooms include the Hafadai Hotel, Hyatt Regency Saipan, Saipan World Resort, Fiesta Resort Saipan and Pacific Islands Club.

The proposal projects approximately $18.32 million in total net winnings, with the government eyeing about $5.49 million in annual revenue. The government plans to issue a request for vendors to submit operating proposals. 

Meanwhile on Rota, Korean-American real estate firm JMSH LLC is planning to revive the gaming industry there with a planned $170 million in investments. 

The company plans to build a total of 700 rooms in two phases. The first phase involves the construction of the first 200 rooms and the casino floor with the initial gaming tables and slot machines. The second phase is the construction of 500 rooms.