CCC Chair Says Transfer of Authority to Lottery Commission Will Kill Casino

Commonwealth Casino Commission chair Edward Deleon Guerrero said if the administration of Gov. Arnold I. Palacios is indeed keen in upending the casino industry, then transferring regulatory authority from the CCC to the Lottery Commission is the way to go.

“If the Commonwealth does not like a casino and wants to kill it, this is a good way to do it, go for a transfer to the Lottery Commission. But if you care about having a robust regulatory entity and you care about the casino working as part of our alternate industry, then I see no reason, no urgent reason why all of a sudden now, just as Team King [Investment (CNMI), LLC] is coming into the picture, to be investigated for due diligence, just then in the process of doing our work, to come in and sever it,” he said during the Senate Committee on Gaming’s marathon hearing last June 18.

Team King Investment’s $12.95-million offer emerged as the successful bid in acquiring Imperial Pacific International (CNMI) LLC’s property on Saipan.

The hearing last June 18—one in the morning and the other in the afternoon—was specifically held to shed light and hear CCC’s comments on Gov. Arnold I. Palacios’ Executive Order 2025-002, which proposes to transfer the authority for the supervision of casino gaming from the CCC to the aforementioned lottery commission.

During the hearing, Deleon Guerrero also gave some good news when he reported that the Chapter 11 case against IPI appears to be moving forward after Team King apparently paid the liability insurance. It can be recalled that bankruptcy judge Robert J. Faris threatened to dismiss IPI’s bankruptcy filing and change it to Chapter 7 if the issue of insurance wasn’t resolved.

Gaming Committee chair Sen. Corina Magofna said her panel will take into account Deleon Guerrero’s testimony during the hearing and will use it when it decides to approve or reject the governor’s executive order in transferring the authority of the CCC to the Lottery Commission

“I think this is a very strong statement that you have provided and it's definitely something that the committee will do a little bit more research to ensure that there is no, you know, whatever legal impact that it might have, that we do the responsible thing and ensure that the Commonwealth is first and foremost our priority and our focus in all of this. We're still doing a lot of research into this executive order,” she said.

Palacios’ Executive Order 2025-002, issued last May 30, is subject to legislative review and both the Senate and House have 60 days to act—either modifying or rejecting the EO. If they do nothing, the transfer will take effect automatically on July 29, 2025.

During his testimony, Deleon Guerrero also questioned the practicality of the original Casino License Agreement, calling the $2-billion investment requirement, 2,000 hotel rooms, and $15-million annual license fee unrealistic.

He then urged lawmakers to amend the casino law instead of dismantling the regulatory structure outright.

In circumspect, Deleon Guerrero told the committee that ultimately CCC’s enforcement actions were hobbled not only by IPI’s financial collapse—due to COVID-19 and other factors—but also by the Office of the Attorney General’s refusal to assist the commission during key legal proceedings. He said CCC’s request to lift the bankruptcy stay and revoke IPI’s license was rejected by the AG's solicitor division, and at one point, CCC was told to hire private counsel.

Another issue the CCC chair brought forward is the possible permanent closure of CCC’s office at Springs Plaza in Gualo Rai. Deleon Guerrero expressed concern over how confidential personnel files and regulatory records—some dating back years—would be handled during the transition.

Deleon Guerrero also noted the unresolved issue of CCC’s backpay and unpaid obligations, citing a $250,000 appropriation in Public Law 24-1 that remains unfulfilled due to what he called misinterpretation by the AG’s office.

In contrast to his more mellow demeanor in the afternoon hearing, the CCC chair held a firmer stance in the morning session.

During one instance, he called into question the need for an elected attorney general, saying “the legislative initiative to make an elected attorney general was perhaps a rushed job because [the] Office of Attorney General should be under the Office of the Governor. It doesn't matter who the governor is. And have an elected prosecutor to fully prosecute all violations of law.”

Deleon Guerrero then suggested that the CNMI’s attorney general appear to hold the same power as the governor.

“You cannot have a shadow governor, which, even if the governor signs a document, if the AG doesn't sign, it doesn't move. It does not work. But it needs legislative approval to change the [CNMI] Constitution, make an elected district attorney, and let this entity prosecute all violations of law, but remove all non-criminal [cases] back to the office.”

He believes the governor needs an Office of Attorney General within his office.

“Right now, there's no governor operating in the Commonwealth, in my opinion. No official documents can ever proceed without having two signatures on that. So, going back to this, we are now responsible for all of this. It really surprises me. And it reminded me, you know, if I was to make an analogy in reference to Gov. Palacios’ claim, this is like a fire chief who cuts funding to the fire department, blocks access to the hydrant, and then blames the firefighters when the building burns down.”

Should the Legislature approve Palacios’ Executive Order 2025-002, Deleon Guerrero said the CCC may pursue legal action.