The Commonwealth Casino Commission (CCC) of the Commonwealth of Northern Mariana Islands (CNMI) is about to be given more power over casino activity. The House of Representatives approved legislation yesterday that gives the agency more oversight of the casino industry, as well as control over gaming licenses. Previously, those licenses were issued by the Commonwealth Lottery Commission. The CCC now only needs Governor Ralph DLG Torres to sign off on the bill for it to become official, and it will be interesting to see what happens next with Imperial Pacific International (IPI).
IPI and its CEO, Donald Browne, were recently held in contempt of court for missing a major court-ordered payment related to an ongoing legal battle between the casino operator and virtually the whole of the CNMI. While it isn’t clear whether the new bill, House Bill 21-11, is a direct result of that fight, it’s possible that the CCC has felt that its hands have been tied, preventing it from taking more drastic measures in order to get IPI to cooperate. The bill was passed unanimously by House members and will provide the CCC with a lot more latitude in how it addresses casino matters.
In addition to taking over the licensing process, the CCC will now be able to establish and maintain a new regulatory fee fund for the commission. This fund was previously controlled by the CNMI Finance Secretary, and IPI is way behind in its annual obligatory contributions for licensing and other fees for its Imperial Palace casino in Saipan. CCC Chairman Edward C. Deleon Guerrero points out that the revised legislation has been attempted for several years and asserts, “It would strengthen the casino commission’s ability to enforce the mandates of the original gaming law, [Public Law] 18-56. And would really clarify and remove some of the ambiguities,” adding, “We, the CCC, do not have the authority on quite a lot of areas that we are blamed for.”
Lawmakers are skeptical that the CCC will take control of its duties the way the laws are designed, but are ready to put pressure on the commission to ensure it follows through. Representative Joseph Leepan Guerrero, who represents Saipan, wants the CCC to follow through on any warnings it issues and stated, “No more of this, ‘We’re thinking of imposing fines.’ Impose it! Put a lock on that casino if they are not in compliance.” That was a reference to the CCC threatening at least twice to kick IPI out, but then not following through on those threats.
Although IPI and Browne have been held in contempt of court and it was suggested that Browne could end up in jail, the company paid part of the outstanding court-ordered payment, allowing him to remain free. Browne told AG Brief this week that he believes IPI is close to finding some type of financial bailout, but wouldn’t specify how much money could be coming, or win. So far, IPI is on the hook for at least $18 million in licensing and government fees, as well as several million more in private debt to construction contractors and employees. It also reported a loss of about $103 million for the first half of 2020.
