IPI’s Casino Exclusivity in Saipan at Risk as Deadline Looms
Posted on: October 27, 2023, 06:42h.
Last updated on: October 27, 2023, 06:42h.
Imperial Pacific International’s (IPI) grip on casino exclusivity in Saipan is at risk as a $62 million deadline approaches. The troubled casino company, known for the failed Imperial Palace resort, faces significant consequences if it fails to meet its financial obligations.
The Commonwealth Casino Commission (CCC) has issued a 30-day ultimatum to IPI. The ultimatum demands the payment of outstanding fees associated with the casino license and exclusivity agreement in Saipan. Failure to pay within the timeframe may result in IPI losing its exclusivity.
IPI’s Financial Struggles
IPI Director How Yo Chi disagrees with the CCC’s deadline, claiming that 30 days is not enough time to meet the substantial financial demand. Additionally, the fact that the Imperial Palace casino is still closed further complicates the matter.
How suggests an alternative payment plan, proposing that IPI pays $5 million to the government and an additional $1 million to the CCC annually for the next two to four years. This would result in a maximum payment of $24 million to the government.
This proposed arrangement is met with skepticism due to IPI’s history of unfulfilled financial promises. However, How reveals a potential lifeline, stating that the company has a Japanese backer willing to invest $350 million if IPI retains its exclusivity.
CCC Chair Edward C. Deleon Guerrero offers a counterproposal. He suggests that IPI makes annual payments of just over $5.1 million until the entire debt is paid off. This would extend the repayment period until 2032 and would be in addition to new fees and legal obligations.
As the 30-day deadline approaches, the future of the Saipan gaming landscape hangs in the balance. The outcome of this high-stakes financial gamble remains uncertain, especially considering IPI’s questionable track record.
IPI Denies Connection to Drug Trafficker
In a separate incident, IPI denies allegations made by a drug trafficker claiming to have been invited to Saipan by the company. Liang Yang recently pleaded guilty to conspiracy to possess methamphetamine with the intent to distribute. His involvement in the illicit drug trade will be determined in a sentencing hearing scheduled for January.
How vehemently denies any connection to Yang, although Cui Lijie, who still holds a majority stake in IPI, admits to knowing Yang. Cui acknowledges her shared history of operating restaurants in Beijing with Yang’s girlfriend.