The Commonwealth of the Northern Mariana Islands (CNMI) is contemplating the legalization of online

The Commonwealth of the Northern Mariana Islands (CNMI) is contemplating the legalization of online gambling, a move that has garnered skepticism from industry experts. Ben Lee, Managing Partner at IGamiX, views this proposal as a "desperate attempt to source new revenue for their pension black hole." With the Imperial Pacific International (IPI) casino-resort operator facing dissolution calls amid financial troubles, CNMI is exploring online gaming as a potential revenue stream.

However, Lee warns that such a move might bring more problems than benefits, citing the regulatory and policing disasters faced by the Philippines and Cambodia. The Philippines, home to offshore online gaming operations (POGOs), has grappled with issues like human trafficking and money laundering. Similarly, Sihanoukville in Cambodia shut down its online gaming operations due to unregulated activities.

CNMI, including Saipan, falls under United States jurisdiction, and gambling activities are subject to increased scrutiny. Lee points out that while the CNMI is subject to certain US federal laws, it remains unclear if it falls outside the grasp of the Federal Wires Act. He questions the government's ability to ensure that online operators comply with regulations.

To establish a credible online gaming industry, Lee suggests that CNMI needs to invest in IT and legal resources for monitoring and regulation. He emphasizes the importance of transparency and sustainability for the industry's success.

One of the challenges facing Saipan is its focus on Chinese clientele, a factor that may need reconsideration. Lee notes that the Philippines justified their POGOs by denying a focus on China and other countries that prohibited online gaming. He suggests that ring fencing could have been a solution but was never effectively enforced, leading to regulatory oversights and calls for the elimination of POGOs in the Philippines.

As CNMI contemplates online gaming legislation, its approach and regulatory stance will be crucial. Lee observes that Asian operators have varied approaches to online gaming regulation, ranging from relaxed to highly stringent. Given CNMI's track record in overseeing traditional casinos and video poker clubs, the industry awaits details on how the jurisdiction plans to navigate the complexities of online gaming legislation.

By fLEXI tEAM