TWENTY-FOURTH NORTHERN MARIANAS COMMONWEALTH LEGISLATURE IN THE HOUSE OF REPRESENTATIVES

Regular Session, 2025 H. B. 2*-141

A BILL FOR AN ACT

To amend Title 4, Division 2, Chapter 3 of the Commonwealth Code, to amend the Commonwealth Gaming provisions, remove exclusive license, and allow for more casino licenses; and for other purposes.

BE IT ENACTED BY THE 24T11 NORTHERN MARIANAS COMMONWEALTH LEGISLATURE:

1 Section 1. Findings and Purpose. The Legislature finds that the

2 Commonwealth Casino Law, as originally enacted, provided for an exclusive

3 casino license. This model has proven unsustainable, as the sole licensee became

4 entangled in litigation and was unable to deliver on its commitments. Reviving the

5 industry requires a new framework that fosters competition, attracts credible

6 investment, and restores confidence in the Commonwealth's gaming sector.

7 The Legislature further finds that recent asset transitions in Saipan

8 demonstrate continued investor interest in casino development. These

9 developments present an opportunity to restructure the industry by authorizing

10 multiple non-exclusive licenses under strong regulatory oversight, rather than

11 relying on a single operator. Allowing qualified operators to enter the market will HOUSE BILL 21" .

1 reactivate hotels, unlock construction projects, and create local jobs, while

2 promoting transparency and accountability.

3 The Legislature recognizes that the decline of tourism airlift and visitor

4 arrivals since the pandemic has undermined the assumptions of the prior exclusive

5 model. Diversifying operators and projects will support a broader tourism recovery

6 by re-opening hotel inventory, generating demand for new air routes, and aligning

7 with global travel trends. Modernization is also required: advancements in Internet

8 gaming and digital payment technologies, including stablecoins and municipal

9 tokens, call for updated regulatory authority at the Commonwealth level to ensure

10 consumer protection and compliance with federal law.

11 The Legislature further finds that gaming revenues must be tied directly to

12 a compelling public purpose. Retirees currently receive seventy-five percent (75%)

13 of their pensions from the Settlement Fund, with at least $12.5 million needed

14 annually to cover the remaining twenty-five percent (25%) obligation. By

15 establishing a performance-based Casino Gross Revenue Tax (CGRT), this Act

16 ensures a reliable stream of revenue prioritized for retirees, while protecting the

17 General Fund for essential government services.

18 Finally, the Legislature affirms that a revitalized industry depends on

19 credible and independent regulation. Nothing in this Act diminishes the powers of

20 the Commonwealth Casino Commission (Commission). Instead, this Act

21 strengthens the Commission's role in licensing, oversight, and enforcement,

2 HOUSE BILL 2q

1 ensuring that future operators meet the highest standards of suitability and financial

2 integrity. The Commission will be self-funded through dedicated regulatory fees,

3 avoiding any burden on the Commonwealth's general revenues.

4 It is therefore the policy of the Commonwealth to end statutory exclusivity,

5 authorize multiple non-exclusive casino licenses, modernize oversight to reflect

6 current gaming technologies, and dedicate revenues to public priorities, while

7 safeguarding transparency, accountability, and the long-term economic stability of

8 the Commonwealth.

9 Section 2. Amendment. Title 4, Division 2, Chapter 3, Articles 1, 2, 3 are

10 amended, and a new Article 6 is hereby enacted, to read as follows:

11 "Article 1. Gaming Provisions.

12 § 2301. Exclusion from Gambling Prohibition.

13 Casino gaming and wagering is authorized in the Commonwealth provided

14 that such gaming and wagering occurs in the casino facilities of the casino operator

15 licensed pursuant to this chapter or in a casino licensed pursuant to the laws of a

16 Senatorial District.

17 § 2302. Central Government Taxation.

18 (a) The taxes imposed by 4 CMC § 1505, 4 CMC § 1503, Amusement

19 Machines, 4 CMC § 1504, Limitation on Number of Poker Machine License Issued,

20 and 4 CMC § 1506 Criminal Penalty, and 4 CMC § 1507, Regulations, shall not

21 apply to a licensed casino.

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