Revenues from gambling machines up by 30% By ALDWIN R. FAJARDO

Revenues collected by the government from amusement machine licensing fees shot up by more than 30 percent during the last fiscal year, according to a financial report prepared by the Office of the Governor.

Poker and pachinko machines replenished public coffers with additional $5.67 million during the fiscal year 1999, up from the 1998 tally of $4.33 million.

The figure also surpassed projections of $4.2 million revenues from annual licensing fees of amusement machines, which now total over 1,000 units following the lifting of the cap in the per island apportionment of poker and pachinko apparatus.

The increase in the number of poker machines in Saipan has accordingly forced the Department of Finance to beef up its monitoring team to ensure compliance of tax laws and licensing requirements by new operators.

There were only about 234 legally-registered poker machines in Northern Marianas before the cap was lifted under the Fiscal Integrity Act, which was signed by Gov. Pedro P. Tenorio into law August last year.

Saipan continues to be home to the bulk of licensed gaming machines. Tinian has at least 100, while Rota allowed the operation of only about 60 poker and pachinko machines.

The Fiscal Integrity Act automatically repealed the sunset provisions in the tax laws, which would have deprived the commonwealth of millions of dollars in revenues, and eliminate the Earned Income Credit which would entail a potential liability of tens of millions of dollars.

Finance officials have projected to collect fees from only about 70 percent of the existing machines due to uncertainties whether operators will renew their permits despite the increase in government-imposed licensing charges.

The Fiscal Integrity Act provides that license fees for machine be pegged at $6,000, but exempts casino operators from paying the fees for three years.

The law was implemented to prevent the government from further coughing out the needed cash resources and at the same time raise funds for the local coffers.

Fifty percent of the fees to be generated from licensing of amusement machines will be earmarked for the Northern Marianas Retirement and while other half will be reserved by the Department of Finance. Forty percent of which will go to the general funds.

The government is upbeat that the increase in revenues from poker and pachinko machine licensing fees would help the commonwealth match federal grants for capital improvement projects, as well as fund critical services like health, education and public safety.