Tinian’s Digital Gamble: NMI Senate Overrides Veto on iGaming and Stablecoin Bill

In a powerful legislative response, the Senate of the Northern Mariana Islands has voted 7-1 to override Governor Arnold I. Palacios’ veto of a landmark proposal that would legalize internet gambling and establish a government-backed stablecoin on Tinian.

The proposal, introduced as Senate Local Bill 24-1, now heads to the island’s House of Representatives, where it will require a two-thirds majority to become law.

The bill has garnered prominent backing from key Tinian lawmakers, including Senators Karl King-Nabors, Frank Q. Cruz, and Jude U. Hofschneider, who view the legislation as a strategic lifeline for Tinian’s post-pandemic economy. According to these senators, the bill would usher in a new economic model for the island—one rooted in digital infrastructure rather than traditional physical development.

They emphasize that the legislation is designed to safeguard Tinian’s fragile natural environment while diversifying revenue streams through iGaming and blockchain innovations.

Governor Palacios initially rejected the measure last month following legal review by Attorney General Edward E. Manibusan. The AG’s advice cautioned that the bill might encroach on the authority of the Second Senatorial District, which includes Tinian. Governor Palacios ultimately echoed this concern, stating that the bill potentially overstepped jurisdictional boundaries, and used that rationale to veto the legislation.

Despite those concerns, Senate Floor Leader Donald M. Manglona of Rota put forward a motion to override the veto. The motion passed overwhelmingly, with only Senator Celina R. Babauta of Saipan voting against it. Senator Corina L. Magofna was not present and was officially excused from the vote, as reported by the Marianas Variety.

During the Senate’s discussion, Senator King-Nabors made an impassioned case for the bill, citing the economic difficulties facing the region:“This legislation stands at a moment in time when we’re experiencing considerable economic hardship,” he declared.

King-Nabors also underscored that the proposed iGaming sector would be subject to stringent regulatory oversight. He referenced international approaches, including New Zealand’s regulatory model, as a benchmark for how the territory could generate revenue while maintaining responsible governance.

He further asserted that the introduction of a stablecoin would aid the Tinian Casino Gaming Control Commission in implementing federal requirements related to anti-money laundering (AML), taxation, and banking compliance.“Far more stringent” than existing legislative frameworks, King-Nabors said of the bill’s proposed controls.

However, not all senators were convinced. Senator Babauta voiced serious reservations about the proposal, citing social risks and implementation challenges associated with gambling and cryptocurrency.“There are so many social ills that come with gambling,” she warned, cautioning her colleagues against defaulting to gambling as a go-to solution for economic issues.

While she expressed agreement with the broader objective of economic self-reliance, Babauta challenged the direction of the policy, urging lawmakers to explore more responsible alternatives that do not center on gaming and speculative financial tools.

If the House follows the Senate’s lead and votes to override the governor’s veto, Tinian would become the first U.S. territory to legalize and regulate online gambling in tandem with a sovereign blockchain-based currency. Though a date for the House vote has not yet been set, the Senate’s resounding action on Friday is expected to accelerate deliberations in the near future. 

By fLEXI tEAM