Poker establishments cry foul

Several poker establishments are crying foul over a resolution calling for the phase out of all poker machines in the CNMI, except those in licensed casinos, by June 30, 2009, saying it unfairly targets their businesses and puts to waste the thousands of dollars they spent to enhance security, not to mention the lesser revenue for the government and the hundreds of people who will lose their jobs.

The resolution, passed by the Governor's Strategic Economic Development Council, was adopted on Dec. 16, 2008.

Pacific Amusement owners Paul Trombetta and Jim Gebhard said they are not exactly sure what the reason behind the SEDC resolution is.

“It's entirely possible that the members are made up of people connected to competing businesses in the CNMI. Of course, some of their recommendations may be beneficial to their own respective businesses, and that is understandable. I see that one of the signatories does not even live in the CNMI so we wonder what is the true agenda of this body.”

Pacific Amusement operates High Roller I in Garapan and High Roller II in Koblerville. It also manages Bobby's Café along Middle Road.

Poker jobs

Emil De Belen, manager of Treasure Island, meanwhile, said he opposes the SEDC resolution because it would result in the loss of jobs not only for himself but 15 of his co-workers.

It was the same sentiment made by a 35-year-old operations manager of a poker establishment in Garapan, who agreed to speak on condition of anonymity. She said if the SEDC plan pushes through, she will be out of the job and she won't be able to send money to her family back home.

A 32-year-old poker attendant also worries about her job security, especially now since her mother and father are in bad health and she is paying for the college tuition of two of her nephews.

Taking money from the 'poor'

De Belen said it does not make sense outlawing companies like Hanon Investment Saipan, which own Treasure Islands, from operating poker machines, only to allow big hotels to run their own poker parlors.

De Belen, who has been working in the poker industry since 1996, said it would be like taking away money from the poor to give to the rich.

Treasure Island operates 29 poker machines at its 4,000-square-meter Garapan establishment.

Like De Belen, Trombetta and Gebhard also took exception on wordings in the SEDC resolution outlawing poker machines in the Commonwealth, while allowing poker activities in casinos.

“We don't see the logic in this at all. If the concern is the gambling and the effect on families, why would the people who are against poker promote casinos? Is it fair to permit a business activity, any business activity, to a select group of people? For example, would it be fair to allow hotels with 200 rooms or more to be the only businesses allowed to sell alcohol, excluding all of the other businesses in the CNMI? Silly, right? And patently unfair.”

Addiction to vice

The two also questioned SEDC citing increasing poker addiction in the CNMI as the reason behind the move to phase them out.

“Saying that poker machines destroy families is not an accurate statement. Yes, it's true that compulsive gamblers will seek out a way to gamble and often their compulsion will harm their families. Whether it's poker, cockfights, village fiesta gambling, bingo, or a trip to the [Tinian] Dynasty, the compulsive gambler will always find a way to place a bet. We should help the compulsive gambler in the same way we help the alcoholic and drug addict and tax revenues derived from bars and gambling activities should fund this effort.”

A hotel owner who operates four machines but who wishes to remain anonymous, meanwhile, said she feels for individuals and families “victimized” by the addiction to poker.

However, she opposes the SEDC resolution looking for the elimination of poker machines in the Commonwealth because it would lead to the closing of her business. She said the poker machines inside her small hotel are currently the ones sustaining her hotel.

Besides, she said it's not as if poker establishment owners and operators are pointing a gun to their customers' heads.

Trombetta and Gebhard said that, while the government is looking to eliminate poker machines, they should also look at outlawing alcohol altogether.

“There is no doubt that by far the activity that poses the greater harm to families in the CNMI is alcohol. We never hear a cry for relocating the bars to La Fiesta. I wonder why? When you look at the record, most crime in the CNMI is alcohol related, and this includes DUI, crimes of violence, and spousal abuse.”

Magnet for crime?

They also don't believe that poker establishment are magnets for criminal activity.

“Pokers are rarely targets like mom-and-pop [stores] or residences are. Poker casinos are places where there is cash, like other businesses on Saipan like mini marts and banks. When an alcoholic needs a drink or a drug addict needs a fix, and they are determined to rob somebody to get money, they will take the easiest target, but they will get somebody in the end.”

De Belen said it is also unfair for poker establishments to shut down after the government recently required them to make improvements in their operations to safeguard against robberies.

He said Treasure Island had to invest in a CCTV system costing $10,000 as well as hire two security guards for $5 an hour. He said his company has even gone over and beyond the required 10-hour security requirement as his guards look after Treasure Islands 24/7.

Bigger loss

Trombetta and Gebhard fears that if allowed to succeed, the resolution to outlaw poker machines in the CNMI, save for 200-room hotels, would lead to the closure of their establishments.

“We have run some numbers and have determined that we would have to lay off 45 people should we lose our business. Fifty percent of our staffing is local hire. It doesn't take an accountant to figure out that not only would the CNMI lose our license fees that we pay annually, but also our gross revenue tax, jackpot taxes, and corporate income tax.”

They said like the other poker establishments in the CNMI, their closure would have a trickling negative effect on the local economy.

“Additionally the payroll of the 45 people would no longer be in circulation, and neither would the taxes paid by the employees. And let's not forget the rents that we pay for our facilities and operations. How could we meet our lease obligations if the businesses conducted in those premises were banned? Plus there is the considerable investment in capital equipment, leasehold improvements, spare parts and the like. We would end up with a huge writeoff which would negate any tax revenues from our company to the CNMI for many years to come. .Our company will survive because we are diversified, but we would be on a much smaller scale, of course.”

There are a total of 791 poker machines in the CNMI-680 on Saipan, 52 on Tinian, and 59 on Rota. Poker establishments currently pay $12,000 per machine a year, which translates to about $9.5 million in earnings from poker licenses a year for the government.