Fate of 2 casino applicants now in commission’s hands

The fate of two applications for a license to develop a casino resort on Saipan with an initial $2 billion price tag now rests with the four-member Lottery Commission, which officially accepted the applications yesterday afternoon, barely six weeks before the June 19 deadline to decide a grant of license or not, and to whom. A lone public comment at the beginning of the meeting questioned the commission members’ qualifications and integrity.
After years of debate reaching the legislative halls and the courts over allowing casino operation on Saipan, it now comes down to whether either of the two applications received is worth the gamble to help boost the economy and pay back retirees’ deferred 25-percent pension, among other things.

Commission chair Sixto Igisomar, in an interview after yesterday’s one-hour meeting on Capital Hill, said they could start deciding on hiring needed experts when they meet again on Monday.

Among other things, they will evaluate the results of the separate requests for proposals for a casino investigator and gaming consultant.

Igisomar said he understands the frustration of others in the community that do not support casinos on Saipan but the commission is not the proper venue to air these concerns because the commission’s mandate is to review the casino applications now before them.

“We’re beyond that,” he said in an interview after the meeting. “We’re charged with and mandated to review these [applications], the responsibility to make the proper decision on these applications but not to judge whether casino is good for us or not good for us.”

Igisomar and fellow Lottery Commission member Larrisa Larson confided that commission members have been bombarded with a lot of inquiries and comments during office hours and beyond about casino operations.

They said they welcome peoples’ expert opinion—“what it is you think I might want to look at, what you think are the areas of significant use for our commissioners as we review this.”

The Lottery Commission’s May 5 meeting coincides with the deadline for the two casino applicants to turn in their business plans and deposit $30 million each in an escrow account, to be further considered in the process.

The two applicants—announced on April 21 by press secretary Angel Demapan—are Marianas Stars Entertainment, and Best Sunshine International Ltd.

Igisomar and Larson said the commission not only formally accepted the Saipan casino applications but they also ratified the RFPs for the needed services of experts in the casino industry during the executive session.

Gov. Eloy S. Inos was not at the commission meeting yesterday.

The scheduled 1:30pm meeting began at 1:45pm, with four commission members—Igisomar as Commerce secretary, Larson as Finance secretary, Gil Birnbrich representing the attorney general, and Thomas Manglona representing the Department of Public Safety commissioner.

Larson made a motion to amend the published agenda to include a public comment period and a discussion of “other matters.” The motion was adopted.

Former Senate president Juan Demapan was the only one who made a public comment, questioning the Lottery Commission members’ qualifications and experience, as well as their integrity.

“Number one, each one of you guys works immediately under the governor. Number two, each one of you has no casino experience professionally and also hotel operations experience, that’s the problem,” Demapan said.

He believes that the two RFPs—one for a casino resort developer law enforcement review and another for a casino resort development consultant services—were supposed to be for the yet-to-be created Casino Gaming Commission, in consultation with the Lottery Commission.

When no one else stood up to speak during the public comment period, Demapan asked the Lottery Commission to allow him to raise additional concerns. The panel accepted his request.

Demapan asked where the attorney general will stand if someone sues the Lottery Commission, of which the attorney general or his representative is a member, for any of its decision.

Igisomar thanked Demapan for his comments.

Less than a dozen members of the public were present at the meeting. They included Cario Hon, chief executive officer of Mega Stars Overseas Ltd., the new owner of Tinian Dynasty Hotel & Casino and is part-owner of Marianas Stars Entertainment, which is one of the two Saipan casino applicants. Hon was accompanied by two individuals, including their legal counsel.

Barely 10 minutes after the meeting started, the commission went into an executive session at 1:55pm.

After the meeting, which ended at 2:55pm, Igisomar and Larson said the Lottery Commission confirmed the receipt of the $2 million in nonrefundable application fees.

The two commissioners clarified that the decision on the two applications now rests with the Lottery Commission. They said they are devoting time and effort to follow the law’s mandate.

“Let me put it this way. …There’s a policy decision already. There’s a casino [law]. The Lottery Commission is mandated to review the applications, and that is our job. …It is our job to make sure that we get proper guidance to assist in making the best decision, whether to approve or disapprove the application, that’s it,” he said.

As to the lone public comment questioning the commissioners’ integrity and qualification, Igisomar said each commissioner as Cabinet members were appointed by the governor and confirmed by senators to represent the CNMI people.

He said the commission will comply with the law’s mandate to review and decide on the applications as best as they can, using the resources available to them, including the experts that will be hired.

Igisomar and Larson said the commission will also do its best to meet the June 19 deadline to decide on the applications.

They reiterated that the $2 million nonrefundable application fees paid by the applicants will be used for application review and investigations and for the operation of the Casino Gaming Commission.

The funds that will be used to pay retirees’ deferred 25-percent pension will come from the $30 million advance license fee paid by the applicant that will be granted an exclusive casino license.