Northern Mariana Islands Considers Shutting Down Casino Commission

Politicians in the Commonwealth of the Northern Mariana Islands (CNMI) are drafting a bill that could shut down the Commonwealth Casino Commission (CCC) and give its regulatory authority to the Commonwealth Lottery Commission (CLC). This plan is part of a bigger push to boost gaming options in the area in online betting.

Proposed Bill Seeks to Replace CCC with CLC and Explore Offshore Gaming

Rep. Ralph N. Yumul, who leads the House Committee on Gaming, verified that his committee is looking over the current laws that control gaming regulation. The bill under consideration would do away with the CCC and give the CLC the power to manage casino-related enforcement and regulatory tasks. Yumul stressed that the new law aims to create a regulatory framework that can adapt more and is not linked to just one casino operator, which has been the case with the CCC.

A major part of the proposal deals with the possibility of the expansion of internet gaming. Yumul recognized that there is strong opposition to physical casinos among residents. Because of this, lawmakers are looking into making the CNMI a center for offshore gaming businesses. The bill would not make online gambling legal. Instead, it would let the CLC decide what kinds of gaming can happen in the Commonwealth.

Yumul also said the committee is looking at rules from different US jurisdictions to find what works best for the CNMI. They want to create a system that helps the economy grow while keeping a close eye on operations. This way, the gaming industry can run in a sustainable way and everyone can see what is going on.

Proposed Overhaul to Casino Regulation Follows CCC’s Financial Collapse

The move to shut down the CCC happens as the commission faces financial troubles. Imperial Pacific International (IPI) stopped running its casino in March 2020 because of COVID-19. Since then, the CCC has not been able to get its yearly $3.15 million fee for overseeing the industry. This led the CCC to fire more than 50 workers and close its Gualo Rai office in early 2023.

Critics say the CCC could not act as a free regulator because it relied too much on one casino company. The group came to be after the CLC gave IPI the only casino permit in 2014, a choice that has been looked at meticulously given IPI‘s financial and legal problems.

Lawmakers think moving regulatory responsibilities to the CLC would make up a stronger system that does not need just one firm to finance it.In a related update, the District Court for the Northern Mariana Islands has given the green light to auction off IPI’s unfinished Garapan hotel casino and other real estate assets.

Bankruptcy judge Robert J. Faris will oversee the process, which has a minimum bid set at $10 million for the assets. The sale will start by picking an initial bidder before scheduling an auction, with the final sale hearing set for March 25.