The government of Samoa could reopen the bidding for a casino license after calling off negotiations with a Chinese developer who has landed in legal trouble in China.
Exhibitions Tourism Group had planned to build a 500-room hotel and casino in the tiny, cash-strapped South Pacific nation, which is heavily reliant on foreign aid and remittances from citizens working abroad. The deal called for a tax of 15% of gaming revenue on top of a fee of US$150,000. But talks hit a snag when ETG boss Deng Hong was named in a corruption investigation in mainland China. The Samoan government withdrew the license earlier this month.
“We need to make a decision about whether we go back to market for the licence or whether we just continue on with one license given to a local firm,” Gambling Control Authority Chief Executive Robbie Kearney told Reuters.
The government authorized two licenses back in 2010, including one for local hotel operator Aggie Grey’s, as a way to help recover from a decline in tourism in the wake of the global financial crisis. A 2009 tsunami wrought further havoc with the island’s economy, and a 2012 cyclone added to the damage. The economy was valued last year at $677 million.
