Lawmakers in Commonwealth of Northern Mariana Islands (CNMI) are preparing legislation to dismantle the Commonwealth Casino Commission (CCC) and transfer its enforcement powers to the Commonwealth Lottery Commission.
House Committee on Gaming Chair Ralph N. Yumul confirmed on 3 February 2025 that the proposed bill seeks to strengthen the lottery commission’s authority, effectively removing the CCC from the regulatory landscape. If enacted, the legislation would eliminate the CCC and empower the lottery commission to oversee gaming operations in the Commonwealth.
Beyond restructuring regulatory oversight, the committee is also considering expanding gaming opportunities beyond traditional brick-and-mortar casinos. Yumul highlighted the potential for the CNMI to become a global hub for offshore online gaming, allowing gambling services to be marketed internationally rather than within the local community.
However, the bill will not immediately legalise internet gaming. Instead, it will grant the lottery commission the authority to decide which forms of gaming are permissible in the CNMI. Yumul stressed that all decisions regarding gaming expansion will rest with the commission.
To develop a suitable regulatory framework, the committee is studying gaming models from various U.S. states. Lawmakers aim to implement a system that aligns with the CNMI’s economic interests while ensuring regulatory efficiency.
A key driver behind the proposed dissolution of the CCC is concerns over its relationship with the Commonwealth’s sole casino licensee, Imperial Pacific International (IPI). Yumul has argued that the CCC’s close association with IPI has compromised its ability to function as an impartial regulator.
The issue stems from a 2014 decision by the Commonwealth Lottery Commission to grant IPI an exclusive casino license, which led to the establishment of the CCC as its regulator. However, the CCC’s scope is restricted solely to overseeing IPI’s operations, creating a dependency that raises questions about its independence.
Critics argue that a regulatory body tasked with monitoring only one entity may struggle to maintain neutrality, as its existence is inherently tied to that single licensee.
Compounding the problem are IPI’s financial and legal troubles. The company has faced allegations of money laundering, labour violations, and repeated failures to fulfil financial obligations under its Casino License Agreement.
Unpaid fees and contributions mandated by the agreement have led to legal battles and intensified scrutiny of both IPI and the CCC’s effectiveness as a regulator.
The controversy has fuelled calls for reform, with lawmakers asserting that the CCC’s current structure is untenable. By shifting enforcement authority to the Commonwealth Lottery Commission, legislators hope to establish a more flexible and independent regulatory framework.
Commonwealth Casino Commissioner Chair Edward C. Deleon Guerrero and Commissioner Mario Taitano have declined to comment, stating they will wait to review the draft legislation.
If passed, the bill could mark a significant transformation of the CNMI’s gaming industry, potentially reshaping the region’s approach to gambling regulation.
Welcome to Gambling Consulting Authority (GCA) - Your Strategic Partner in Gambling Industry Advancement
