Northern Mariana Islands Senate Overrides Veto on Tinian iGaming and Crypto Bill

In a 7-1 vote, the Northern Mariana Islands Senate overruled Governor Arnold I. Palacios’ veto of a bill tabled to legalize iGaming and introduce a government-backed stablecoin on the island of Tinian.

The controversial measure—Senate Local Bill 24-1—now progresses to the island’s House of Representatives for a deciding vote. It will require at least a two-thirds majority for it to be signed into law.

Tinian iGaming Bill Enjoys High Profile Support

The bill, which has several high-status backers, including Tinian senators Karl King-Nabors, Frank Q. Cruz, and Jude U. Hofschneider, actively seeks to diversify the island’s faltering economy since the pandemic. The core principle is to integrate new revenue streams without the need for additional physical infrastructure, protecting Tinian’s limited natural resources.

Governor Palacios had initially vetoed the bill last month, having first sought legal advice from Attorney General Edward E. Manibusan. His reasoning behind his judgment was that the resulting legislation would supersede the Tinian delegation’s Second Senatorial District jurisdiction.

Despite the governor and the AG’s concerns, Senate Floor Leader Donald M. Manglona of Rota introduced a motion to nullify the veto. Following a vote on Friday, all but one senator, Celina R. Babauta of Saipan, voted in favor of the measure, with another, Sen. Corina L. Magofna, being excused, according to the Marianas Variety newspaper.

Comparison With International Models Like New Zealand

The bill’s supporters maintain that the iGaming sector will be a highly regulated industry and raise much-needed tax revenues—a similar premise behind New Zealand’s recent push to do the same. “This legislation stands at a moment in time when we’re experiencing considerable economic hardship,” said King-Nabors on the Senate floor.

King-Nabors also reinforced that stablecoins would further facilitate the Tinian Casino Gaming Control Commission’s ability to implement federal anti-money laundering (AML), tax, and banking laws. In detailing the proactive approach, he described the initiative as being “far more stringent” than the current legislative alternatives.

Responding critically to the bill’s premise, Babauta voiced concerns about the territory’s ability to manage such a complex system accurately before warning of the unfavorable social issues connected with gambling.

While sharing the Senate’s views on the need to push for economic independence, Babauta questioned the validity of repeatedly reverting to introducing gambling as a default solution. “There are so many social ills that come with gambling,” she said, again urging caution.

Should the House vote to overturn the veto, Tinian could become the first US jurisdiction to legalize and regulate online gaming using its own blockchain currency. However, lawmakers have not yet scheduled a ballot date. Nevertheless, Friday’s result will likely accelerate an announcement in the coming weeks.