Palau is once again looking to the CNMI\u2019s experience as the independent island nation deals with its own casino legalization bill that passed its House of Delegates on first reading last week. A team of Palau lawmakers is on a fact-finding mission to Saipan, including a meeting yesterday with the Senate, followed by a meeting with the House of Representatives this morning. <\/p>\n
\u201cWe told them it\u2019s not easy to sell the idea. They need to have compelling public interest to sell the idea,\u201d Senate Vice President Victor Hocog (R-Rota), one of the three CNMI senators who received the Palau lawmakers yesterday, told Saipan Tribune.<\/p>\n
Senate President Ralph Torres (R-Saipan) and Hocog separately said that like the CNMI, Palau\u2019s pension fund is also having great financial difficulty, while its utility rates are also high and the minimum wage still pegged at $3.50 an hour.<\/p>\n
Within weeks this year, the CNMI House and Senate passed a bill legalizing casino on Saipan. In August, the CNMI government awarded an exclusive license to Best Sunshine International Ltd. to develop a $3.14-billion integrated casino resort on Saipan. The license term is up to 40 years.<\/p>\n
In Palau last week, the House of Delegates passed\u2014but only on first reading\u2014an exclusive casino license valid for 50 years with an annual license fee of $16 million on the second through the 48th year.<\/p>\n
Torres said he only learned of the Palau delegation\u2019s fact-finding mission during their courtesy visit to the CNMI Senate yesterday. Besides Torres and Hocog, also present was Sen. Pete Reyes (Ind-Saipan).<\/p>\n
The six-member Palau lawmakers\u2019 team is led by Delegate Lucio Ngiraiwet, chairman of the Committee on Foreign Affairs and State Relations.<\/p>\n
\u201cThey asked us questions, including how we considered a minimum amount of investment, the role of Retirement Fund issues, how things have changed. They also have problems with their retirement now, their utility rates are high, and their minimum wage is still $3.50 an hour,\u201d Torres said.<\/p>\n
Torres said he also recommended that Palau lawmakers learn more about \u201cintegrated resort\u201d with casino.<\/p>\n
About two years ago, Torres voted \u201cno\u201d to a Saipan casino legalization bill. Citing the need to address mounting CNMI financial problems such as the retirement fund, Torres voted \u201cyes\u201d this year to allow casino operation on Saipan\u2014touted as a major revenue-generating measure.<\/p>\n
\u201cI\u2019m glad that other islands like Palau are trying to address their current issues. If casino is the venue, then so be it. They are now looking at the CNMI as a good model. I also suggested to them to protect their people, address their long-term issues,\u201d Torres added.<\/p>\n
Hocog, for his part, said the Palauan lawmakers asked them about the issues that led to the passage of an exclusive Saipan casino license bill. He said they were also asked how they managed to pass the Saipan casino bill, and what the public\u2019s reaction was.<\/p>\n
\u201cAlthough at a smaller scale, the delegates said Palau needs at least $8 million more every year to fund its pension program. That\u2019s money they don\u2019t have. Some lawmakers hope that having a casino in Palau will help Palau address their retirement problems, too, just like how the CNMI is addressing its retirement fund issues,\u201d Hocog said.<\/p>\n
He said the big difference between Palau and Saipan is that Palau still has lots of available public lands, whereas Saipan has limited lands.<\/p>\n
\u201cSo now, the biggest challenge for the Saipan casino developer is the availability of lands. We don\u2019t have much lands available,\u201d Hocog added.<\/p>\n
Casino gaming has long been legal in the CNMI\u2019s two other major islands of Tinian and Rota. As of today, only Tinian Dynasty Hotel & Casino is operating in the CNMI, while Best Sunshine has yet to even lock in lands on where to build its integrated casino resort on Saipan.<\/p>\n
Palau\u2019s Island Times reported that almost all members of the House of Delegates signed on to a bill that will permit and regulate casino gambling in Palau.<\/p>\n
Palau\u2019s House Bill No. 153-15S was introduced by 13 House of Delegates members led by Speaker Sabino Anastacio. <\/p>\n
The bill provides for the establishment of the Palau Gaming Commission, which is tasked to, among other things, issue no more than once casino license.<\/p>\n
Under the bill, the casino license fee is $50 million for the first year of the term of the license to cover the first year, 49th and 50th year of the casino license fee. The casino license holder is required to pay $16 million in license fee annually beginning the second year of the license, and on through the 48th year.<\/p>\n
Pro-casino lawmakers eye high-end tourist markets for the proposed Palau casino.<\/p>\n
Palau lawmakers are planning to conduct public hearings on the bill.<\/p>\n
Palau President Tommy Remengesau first vetoed a casino bill during his previous term, in 2003. In 2009, then Palau president Johnson Toribiong also vetoed a casino bill. <\/p>\n","protected":false},"excerpt":{"rendered":"
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