Imperial Pacific International (CNMI) LLC, the beleaguered casino operator in Saipan, is on the brink of losing its license as it faces a critical ultimatum from the Commonwealth Casino Commission (CCC). The company has been directed to pay the outstanding $62 million in unpaid license fees within the next 30 days, or risk the revocation of its license. This ultimatum follows a prolonged legal battle and a recent order from the US Supreme Court mandating a “reasonable period of time” for potential license revocation.
Debt Ultimatum:
Imperial Pacific International (IPI) has been issued a 30-day deadline by the Commonwealth Casino Commission to settle its outstanding $62 million in unpaid license fees.
Failure to comply by the end of December could result in the revocation of IPI’s casino license, adding to the challenges faced by the operator.
Legal Background:
The move follows a US Supreme Court order instructing the CCC to provide IPI with a “reasonable period of time” before considering license revocation.
IPI’s casino has been closed since March 2020 due to the COVID-19 pandemic, and its license was suspended in April 2021 due to non-payment of various fees.
Force Majeure Dispute:
IPI had previously argued that the closure of its casino was due to a force majeure event, leading to legal challenges against the license revocation.
The Supreme Court, however, ruled in January that the force majeure event had concluded, and lingering economic effects did not qualify as an ongoing force majeure.
Current Status and Response:
IPI’s casino has remained shuttered, contributing to the prolonged financial and legal struggles faced by the operator.
The company is currently evaluating its response to the CCC’s payment order, with the outcome pivotal to the future of its casino operations.
Calls for Immediate Action:
Amidst the protracted legal battles, CNMI lawmaker Rep. Marissa Flores has urged the CCC to take decisive action, either revoking IPI’s casino license immediately or resigning from their roles.
Imperial Pacific International’s financial turmoil and legal challenges have reached a critical juncture with the CCC’s ultimatum. The mandated 30-day window for settling the $62 million debt underscores the severity of the situation. The fate of IPI’s casino license hangs in the balance, with potential repercussions not only for the operator but also for the regulatory landscape in Saipan. As stakeholders await IPI’s response and potential developments, the broader implications of this high-stakes ultimatum will likely shape the future of casino operations in the region.