New law makes online gaming possible in Northern Mariana Islands
The Commonwealth of the Northern Mariana Islands (CNMI) is considering a move into online gambling in response to the economic setback caused by the Palace casino collapse. Imperial Pacific International's failed investment cost the U.S. hundreds of millions of dollars, and iGaming could be a way out.
Rep. Ralph Yumul, R-CNMI, chairman of the House Gaming Committee and brother of former IPI CEO Ray Yumul, introduced his groundbreaking bill on Thursday. Media outlet Marianas Variety reports that the proposed legislation aims to pave the way for video gaming websites and other software applications accessible over the internet to operate under a licensing framework.
This could revitalize the local economy by entering the lucrative online gambling market. A variety of gaming options are approved, including roulette, blackjack, craps, online slots, and more.
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The bill is not limited to online casino games. This also includes sports and esports betting. It will also allow other forms of betting, such as on reality TV shows and political elections.
A distinctive feature of the Yumul proposal is the integration of blockchain technology into all financial transactions related to online gambling. While the bill does not specify whether transactions should be conducted in Bitcoin or alternative cryptocurrencies, the use of blockchain ensures a transparent and secure financial ecosystem.
Umur acknowledged that his proposal is still in its infancy. He suggested establishing a permitting process but did not provide any information on the costs involved. He also acknowledged that comprehensive discussions are needed between lawmakers and community members to assess feasibility and responses.
He pointed out that several states in the United States, including Pennsylvania, Michigan and New Jersey, have regulated the online gambling market. If the Commonwealth of the Northern Mariana Islands goes this route, it will also follow in the footsteps of at least one of these states and adopt their gambling laws and regulations.
Yumul may have also taken a subtle dig at IPI in his comments. He said there was no "commitment of a hotel resort or building" in online gambling.
If successfully passed, this legislation could represent a major turning point in the economic landscape of the Northern Mariana Islands. It will provide new impetus to a region that is grappling with the consequences of the catastrophic failure of IPI and Forbidden City.
Land-based games are still under discussion
Yumul is behind a 2021 legislative initiative to approve the opening of five casinos on Saipan. That didn't go too far given IPI's exclusivity agreement with the government, and Yumul is now taking a different approach to expanding its gambling operations.
This does not necessarily mean that land-based gaming will not change in the future. IPI now has less than 30 days to pay $62 million in arrears in royalties or risk losing its license.
The company is currently defending against the lawsuit and is asking the U.S. Supreme Court to uphold his claim that the requirement is unconstitutional. Previous court rulings against IPI suggest the Supreme Court will not be very sympathetic.
Industry insiders, including Asian gaming expert Ben Lee, have often pointed out that Saipan's attempt at an exclusive model was a mistake. If the Commonwealth of the Northern Mariana Islands revokes license exclusivity due to threats, there are several options.
Creating a small casino market with a much smaller footprint than the Forbidden City could be a viable option. Allowing someone to take over the palace in its current state may not be an option.
The third option is to abandon the idea of land-based gambling altogether and rely entirely on the iGaming sector. While it's unlikely to find much support in the Northern Mariana Islands, it's probably the most forward-thinking of the three options.
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Source: www.casino.org
