SAIPAN – Commonwealth of the Northern Mariana Islands House Bill 23-85, which would allow businesses that own a cumulative 100 hotel rooms to operate electronic gambling lounges in western Garapan, could increase the number of gaming investors on Saipan and “create economic development,” its author, CNMI Rep. Ralph N. Yumul, said.

The Saipan Chamber of Commerce, however, is “adamantly” opposed to the measure, saying, it will “do nothing to enhance tourism.”

In an interview on Wednesday, Yumul said House Bill 23-85 proposes to allow other gambling companies that might be interested to open shop in the western Garapan district.

“As you know, the western Garapan district is considered high real estate value, so not a lot of businesses can just come and open in the area, because you’re going to have to pay the premium rates for the lease and so forth. … The return on investment in gaming is quicker than any (other) businesses such as restaurants or a store or what have you that will open in that area,” he said.

The bill would amend CNMI Public Law 18-30, or the Tourism Entertainment and Destination Enhancement Act, which legalized casino gambling on Saipan.

Under P.L. 18-30, only a hotel with at least 100 rooms or a hotel with a golf course may operate casino-style electronic gambling.

If Yumul’s measure passes, any business that owns multiple hotels can operate electronic gambling machines, so long as those separate facilities have a total of 100 rooms.

Yumul said with the CNMI economy still in a downturn, the time to enact change is now.

“Normally, we’ll try to encourage activities on a downtime,” he said. “When the economy is at its bottom or its worst part, you try to entice any activity. For myself, because I’m the chair (of the CNMI House Committee on Gaming), I’m proposing gaming in that area. I’m not saying that there is going to be an instant investor coming in, but at least it opens up that option … in that area.”

Nightlife

Yumul said there is a need to vary Saipan’s nightlife offerings.

“When I was attending the (Japan Association of Travel Agents) trade show in Japan, stakeholders said, … after a certain time in Saipan there’s no activity. That’s one of the reasons I introduced (H.B. 23-85),” he added.

The bill has been referred to his committee, which has received comments from his constituents, including from those who oppose H.B. 23-85, such as the Save Garapan group and the Saipan Chamber of Commerce.

In December, Save Garapan, which is led by John Gonzales, began circulating a petition against H.B. 23-85.

He said the bill would “open a Pandora’s Box of irresponsible, un-family-friendly, unattractive tourism.”

In a letter to Yumul in January, Saipan Chamber of Commerce President Joe Guerrero said, “There is no tourist market segment that has shown any interest in these types of establishments or this kind of activity,” referring to electronic gambling.

Guerrero said gambling is not an activity that appeals to the CNMI’s family visitors from Korea, the islands’ primary market.

“Korean tourists make up the vast majority of arrivals to Saipan,” Guerrero said. “Within the Korean market, most visitors are families. Families are not attracted to gaming in general nor to poker/slot clubs specifically.”

He said the Japanese market, which comprises female office workers, families, company trips and high school groups, are likewise not attracted to gambling.

“None of these segments will be selecting Saipan as their destination of choice due to the availability of these lounges, nor will they avail (themselves) of (these establishments) while they are on island. The presence of e-gaming in Garapan will do nothing to enhance tourism,” Guerrero said.

Upgrade

Guerrero noted that the CNMI government “is spending more than $10 million to upgrade the Garapan area. The presence of small e-gaming lounges will detract from that effort. There was a time when the same Garapan area was crowded with hostess bars and other adult activities. During those years, families avoided walking through the area after dark.”

Guerrero added, “Those establishments are now gone. There is an opportunity to push the Garapan area upmarket, but the presence of e-gaming lounges could prevent the improvements that the area so desperately needs, as lower-end activities are frequently associated with undesirable individuals and criminal activities.”

He said the chamber “stands adamantly opposed to Bill 23-85. It was proposed as a suggested solution to some of the Commonwealth’s funding and tourism challenges, but since that time, the challenges have changed drastically. Bill 23-85 is likely to damage tourism by downgrading the tourist experience in Garapan, the heart of the tourism industry.”

50-50

Yumul said he is open to speaking with the Chamber of Commerce membership to share his stance on the issue.

He said for the rest of his constituents, he believes half of them support H.B. 23-85, while the other half opposes it.

Yumul said once the federal government implements the CNMI Economic Vitality and Security Travel Authorization Program, or EVS-TAP, there could be more Chinese visiting the island again.

“Of course, the Chinese are known (to be) active in any gaming. I’m sure if (EVS-TAP) happens and we’re allowed to bring in Chinese tourists, (they) will be (gambling here),” he said.

Yumul said he believes a vast majority of visitors will prefer nongambling activities, but that shouldn’t deter the development of a gaming industry on Saipan.

“Best-case scenario, we get 30,000 (tourists) a month and we get 5% of that, … (or 1,500) people that may choose to gamble,” he said. “Not everyone would go into the establishment and gamble — not everyone will do that. You may have heard the Korean market is not interested, but we won’t know until we have it here. And that’s where I stand on that.”

Yumul said constituents can email their thoughts on the matter to [email protected]/.