Commerce to go after ‘illegal’ poker arcades

The government will launch an all-out enforcement operation against illegal poker operators CNMI-wide to enhance collections and discourage the proliferation of unlicensed poker arcades in the Commonwealth.

Finance Secretary Fermin M. Atalig and Commerce Secretary Andrew Salas signed a new memorandum of agreement yesterday, setting forth the specific functions of Finance that are transferred now to Commerce.

Salas said that after 30 days, the government would know how many poker arcades are operating illegally.

He said his department would ensure that only licensed machines are being used.

“After 30 days, we’d know who are illegally operating and who are not,” said the secretary in a press briefing at the Governor’s Office yesterday morning.

He said that Commerce enforcement staff—numbering about 10 to 12 personnel—would not close down illegal shops but only issue a notice of violation.

He said violators would be given a chance to rectify the problem, including a hearing.

“We’ll not shut down poker shops. We want them to be operate legally,” he said.

He said his personnel would be “ambassadors of business.”

“We’re not anti-business. We’re pro-business,” said Salas.

There are 1,300 poker machines in the CNMI.

Atalig said in a separate interview that he believes that the poker industry can still afford the proposed $6,000 fee increase per machine for fiscal year 2006. He admitted, though, that only the major operators may survive.

“Those who are less competitive are going wayside,” said Atalig. “I don’t [want to] speak on behalf of the governor but I think that’s one way at least lessen the proliferation of poker machines.”

Salas and Atalig said that they have no personal interests in poker. “We don’t [even] play poker,” they said.

The Commerce-Finance MOA mandates Commerce to enforce the following:
* all poker machines are to have a numbered tag on the top right-hand corner;

* licensed establishments, except hotels and motels, must segregate poker machines in a separate room;

* no admission of minors (under 18 years old) and no alcohol use in poker shops;

* operation of poker arcades must be from 10am to 10pm daily unless the shop has a uniformed security guard on duty.

Atalig earlier said that due to lack of personnel, Finance had to transfer certain functions to Commerce. He said Finance only has two personnel assigned to go after poker operators.

This situation, he said, has resulted in the government collecting poker and amusement revenues “below expectations.”