The Commonwealth Casino Commission (CCC) of the Northern Mariana Islands has postponed yet again a decision on whether to revoke the casino license of Imperial Pacific International (CNMI) LLC after the casino operator put forward yet another settlement proposal.
Local media reports that IPI has promised to pay a total of US$24 million to the CCC in 2024 as part of a draft stipulation agreement, with the final license revocation hearing moved to 22 April to provide the parties with time to work through details of the deal.
However, only US$3.1 million – the amount owed on its 2020 regulatory fee – is to be paid before this 22 April deadline, leaving the CCC to rely on IPI to honor the remainder of its commitment only after it is granted a potential license reprieve.
Almost three years to the day since IPI’s license was suspended in April 2021 for failure to pay various license fees, the proposed settlement would see IPI pay a discounted amount of US$6.8 million on its unpaid regulatory fees from 2021, 2022 and 2023, plus a discounted US$2 million penalty, according to the Saipan Tribune.
It will also pay US$1.1 million on 1 October for its 2024 regulatory fee, with the remaining US$2 million balance deferred until 30 August 2039.
The US$15.5 million owed for IPI’s 2020 license fee and US$5.5 million of its 2024 license fee are to be paid by 18 July with the remaining US$10 million also deferred until 2039.
Should such a proposal be accepted, the CNMI will not look to amend legislation to allow multiple casino licenses on Saipan, while IPI will drop lawsuits taken out against the CCC and Governor Arnold I. Palacios.
Despite another last-ditch attempt to save its license, doubts remain over whether such a settlement is legal and whether IPI even has the means to honor such a US$24 million commitment.
“It’s something new to us,” said IPI director Howyo Chi, as per the Saipan Tribune.
“This is basically our last-ditch effort to make this work. If IPI for some reason defaulted on any of those terms, there’s no turning back. It’s gone forever.”
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