Team King won't exercise exclusive casino license; casino commission could be reconstituted

Team King Investment, LLC will not exercise its option to assume Saipan's exclusive casino license, Gov. David M. Apatang’s legal counsel Brendan Layde told senators during a Senate Standing Committee on Gaming meeting last Dec. 11 on Capitol Hill—removing a major legal uncertainty and clearing the way for the governor's push to end exclusivity and allow multiple casino operators.

“The principal of Team King has already sent a letter to the governor and lieutenant governor, stating that Team King will not be exercising the option to acquire the exclusive license. And instead, might potentially be interested in seeking a non-exclusive license after amendments are made to the legislation, which was the communication the governor sent to the Legislature,” Layde said.

Layde also said Team King's written notification has already been filed in federal bankruptcy court. The company purchased Imperial Pacific International (CNMI) LLC's assets last August, including a nine-month option to take over the monopoly license, but has apparently now formally declined to exercise it.

The administration’s senior policy adviser, Clyde Norita, also confirmed plans to restore and reconstitute the Commonwealth Casino Commission if lawmakers adopt the governor's casino reform bill. Casino oversight is currently housed under the Lottery Commission due to a 2025 executive order.

Norita said the administration is prepared to rescind the executive order abolishing the casino commission as soon as a revised casino law is enacted.

"I think it goes hand in hand with the legislation. The administration has concerns with the previous law. The way the Casino Commission was organized. I think when the legislation is passed, before signing to law that the executive order has to be rescinded. I mean, you can't have multiple commissions trying to fight over who's got jurisdiction,” he said

Committee chair Sen. Corina Magofna agreed the Lottery Commission's structure—led by three agency heads who already run their own departments—is not suited to regulate several casino operators.

“All commissioners have full-time responsibilities to their respective departments, and if we don't clean up, you know, the way it is right now, how can we even deal with multiple casino licenses without an independent regulatory body to oversee that part of the industry?” she said.

The governor's reform package proposes to end Saipan's exclusive casino structure, authorize multiple non-exclusive licenses, allow online gaming and digital payment systems, require minimum investment thresholds, including 100 hotel rooms or $300 million in new development, dedicate the majority of casino GRT to retiree pensions and COLA, and establish a rainy-day reserve fund fed by a percentage of casino GRT.

Norita said the reforms are designed to revitalize the gaming industry, restore investor confidence, and secure critical new revenue sources for the retirees and the people of the CNMI.

Lawmakers repeatedly emphasized the need for stricter controls than those in place during the IPI era.

Lottery commission support staff Patrick Sablan said the background check packet spans over 73 pages per applicant, covering detailed personal, financial, and criminal history disclosures. Third-party investigative firms would again handle verification, he said.

During the hearing on the proposed bill to amend the casino law, senators requested a cap on the number of casino licenses, clear criteria for when the rainy-day fund can be tapped, mandatory completion bonds, and updated revenue projections based on realistic market conditions.

Magofna said the Senate will coordinate with the House to refine the bill and address systemic weaknesses that contributed to prior regulatory failures. The Senate gaming committee will reconvene after receiving additional documents, including the Team King letter and the full applicant background check questionnaire.