CNMI to introduce new gambling tax
Lawmakers in the CNMI filed a bill to introduce a 10% gambling tax on net revenue.
Northern Mariana Islands.- The Northern Mariana Islands continue to draw interest as Imperial Pacific International (IPI) develops a major venue. However, certain legislation changes would impact the business, with a new gambling tax.
Representative Tina Sablan filed a bill to set a new gambling tax in the region, at 10% on net revenue. The other one, by House Gaming Committee Chairman Ralph Yumul is set to prevent IPI from writing off unpaid credit from its tax obligations.
“No deduction shall be allowed from gross revenues for the unpaid balance of any obligation or credit extended for gambling or gaming,” Yumul’s bill states.
Furthermore, it determines that “making loans or extending credit for the purpose of gambling can foster problem gambling.”
The legislation would “discourage lending for the purpose of gambling by providing that unpaid balances on loans extended for gambling shall not be deducted from gross revenues.”
IPI’s project
Imperial Pacific International Holdings continues to work on its Saipan casino. However, the company has just announced it expects to open the casino resort by September 30, 2019.
The developer made the announcement to the Hong Kong Stock Exchange. It explained it hopes to open only phase 1 of its integrated resort development, called “Imperial Palace Saipan.”
The venue had opened as a temporary facility in 2015 and pushed the local economy ever since. It contributed to around 60% of government revenues through taxes and operating fees. Revenue from high roller gamblers from China is the primary money source, but the typhoon has lured them away.
