Class report discloses 47 erring poker establishments

Forty-seven poker establishments were found committing violations between April and October 2005, according to a report by a Northern Marianas College class.

Citing data from Commerce, the students reported that 1,648 poker machines were inspected in 130 establishments throughout the Commonwealth during the six-month period that Commerce-enforced poker rules and regulations on behalf of the Finance Department.

As a result of the inspections, three poker establishments have been shut down in August 2005 for their inability to pay the license fee. The government also seized three unlicensed units in the same month.

In October, an establishment in San Roque was charged in court for operating two unlicensed poker machines.

Overall, the inspections led to the issuance of citations against a total of 47 establishments. These game rooms were found to have been improperly operating a combined 184 poker machines.

The citations were issued to 39 establishments on Saipan and eight on Tinian. No Rota establishment received a citation.

Of the 47 cited establishments, 20 on Saipan and six on Tinian have pending hearings. Nine on Saipan and two on Tinian have been issued warnings. The remaining 10 establishments—all from Saipan—have been cleared of violations after they showed proof of payment of taxes and license fees.

The inspections were conducted pursuant to a memorandum of agreement signed by Commerce and Finance on April 12, 2005. The MOA remained in effect for 180 days. The purpose of the MOA was to assist Finance perform its enforcement function.

Finance’s Enforcement and Regulatory Branch, which has this responsibility, is currently understaffed. It has only two enforcement officers monitoring tax, business license, and poker license matters.

The MOA authorized Commerce to check poker machines for registration. Commerce personnel were also tasked to ensure that poker machines are located in a separate room where minors and alcoholic beverage are prohibited.

Commerce also checked if poker rooms that operate 24 hours have a casino license or a uniformed security guard. Those without a uniformed guard may operate only between 10am and 10pm.

Lastly, Commerce was allowed to conduct hearings for those who had been found violating rules and regulations during the MOA’s effective period.

The report was prepared by 12 NMC students in instructor Sam McPhetres’ class. The class is currently circulating a petition for a popular initiative that would impose additional restrictions on the local poker industry.

The class presented the report at the college yesterday afternoon.