AUSTRALASIA 38
SAIPAN
IPI battles on in Saipan despite mounting legal woes, zero revenue Saipan’s efforts to resurrect its casino industry and rid itself of the incumbent operator have hit another hurdle, with the regulator saying that stripping Imperial Pacific International of its license would be unconstitutional.
H
ong Kong-listed Imperial Pacific was given the monopoly over casino gambling on the island in 2014. However, its efforts to finalize construction of its casino have met successive delays and numerous problems leading to mounting lawsuits against the operator. Its license has been suspended indefinitely since April last year for failure to pay fees to the government and the casino has been closed since March 2020. At the time, IPI was ordered to pay $18.4 million in annual licensing and regulatory dues, as well as more than $6 million in fines. But the company has taken its battle to the courts. It’s contesting the need to pay the
As a U.S. “ jurisdiction,
Saipan’s opportunity is strong to be a good gaming market in the Pacific.
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fees, saying that the Covid pandemic, which brought business to a standstill, should be considered a “force majeure.” It has filed a petition with Saipan’s Supreme Court, which has yet to rule on the case. With no resolution, in October last year frustrated lawmakers sought to take action to strip IPI of the license and instead introduce a bill that would open the market to as many as five operators. To “better provide for the retirees and
Asia Gaming Briefings | February 2022
obtain the goal of increased stability and dependability, we must move away from the current single licensee framework that is totally dependent on one business entity,” the bill states. However, Casino Control Commission head Andrew Yeom, who backed removing
the license, now says the act would be unconstitutional as a local bill cannot supersede Commonwealth law. It’s yet another wrinkle in the ongoing saga and industry consultants said it’s high time for some tough decisions from lawmakers. Aside from failure to pay the fees, the operator has
