Commonwealth of the Northern Mariana Islands (CNMI) lawmakers may advance legislation to dissolve the Commonwealth Casino Commission (CCC) and shift the US territory’s gaming authority to the Commonwealth Lottery Commission (CLC).
Ralph N. Yumul, chair of the CNMI’s House Committee on Gaming, acknowledged on 3 February that a drafted bill would eliminate the CCC and consolidate regulatory oversight under the CLC.
The proposed legislation would grant the lottery commission expanded authority over gaming operations in the CNMI.
By absorbing the CCC’s enforcement powers, the CLC would oversee gaming regulations and determine permissible forms of gambling within the Commonwealth.
While the bill does not immediately legalise online gambling, it would give the lottery commission the discretion to authorise and regulate iGaming activities in the future.
Lawmakers are reviewing regulatory models from other US jurisdictions to establish a framework that supports economic growth while ensuring proper oversight.
A primary factor behind the effort to dissolve the CCC is its exclusive focus on regulating Imperial Pacific International (IPI). Critics argue that this structure compromised the commission’s ability to act as an independent regulator.
The CCC was established after the CLC controversially awarded IPI an exclusive casino licence in 2014. Since then, the regulator’s responsibilities have been limited to overseeing IPI’s operations, leading to concerns about impartiality.
However, IPI failed miserably, and its Imperial Palace casino never fully opened. A series of court-ordered auctions is being held to pay off tens of millions in debt and legal costs, and seek a new owner.
Learn from past mistakes
Lawmakers believe that eliminating the CCC and transferring its functions to the lottery commission would create a more adaptable and impartial regulatory framework.
The lottery commission, which already oversees other forms of gaming, would assume full control of the industry’s regulatory structure.
IPI’s legal and financial troubles have played a significant role in the decision to restructure gaming oversight.
It has been accused of multiple violations, including money laundering, labour law infractions, and failing to meet financial commitments outlined in its Casino Licence Agreement.
Despite Imperial Palace being permanently closed for the past several years, these still-ongoing issues resulted in multiple legal disputes and heightened scrutiny over the CCC’s regulatory effectiveness.
The casino operator’s failure to meet its financial obligations directly impacted the CCC’s ability to operate. With the government refusing to continue funding the regulatory body in the absence of revenue from IPI, the CCC was forced to shut down.
Lawmakers now see the restructuring effort as a necessary step to ensure that gaming regulation in the CNMI is financially sustainable and independent of any single operator.
Lawmakers intend to move forward with drafting the bill, but it remains subject to review and potential amendments.
If the bill passes, the CLC would assume full regulatory control over gaming operations, potentially opening the door for future expansions into online gambling and other forms of wagering.
