Imperial Pacific International (IPI) has been embroiled in a lengthy battle with the Commonwealth Casino Commission (CCC) of the Northern Mariana Islands over its casino license. The latest development involves a proposed settlement where IPI commits to paying a total of US$24 million. This agreement aims to resolve outstanding regulatory fees and potential license revocation, though concerns linger regarding its legality and IPI’s financial capability to fulfill such a commitment.
Background: License Suspension and Settlement Proposal
In April 2021, IPI’s casino license was suspended due to non-payment of various license fees, marking a significant setback in the company’s operations. Since then, negotiations between IPI and the CCC have been ongoing to address the outstanding fees and potential license revocation.
The recent settlement proposal by IPI outlines a structured payment plan totaling US$24 million, spread over several years and including deferred payments. Of this amount, US$3.1 million is expected to be paid before the next hearing on April 22, 2024.
Breakdown of Payment Structure
The proposed settlement divides the US$24 million commitment into specific payments for different fiscal years:
Immediate Payment (Before April 22, 2024): US$3.1 million for the 2020 regulatory fee.
Future Payments:
US$6.8 million for unpaid regulatory fees from 2021 to 2023, plus a US$2 million penalty.
US$1.1 million on October 1, 2024, for the 2024 regulatory fee.
The remainder of the commitment (US$2 million) deferred until August 30, 2039.
Concerns and Legal Implications
Despite the proposed settlement, questions arise about the legality and feasibility of such an arrangement. Doubts persist over IPI’s financial capacity to honor the US$24 million commitment, especially with significant portions deferred until 2039.
IPI Director Howyo Chi acknowledged the high stakes, emphasizing that failure to meet the terms would mean irreversible consequences for IPI’s license. Moreover, the acceptance of this settlement could impact legislative decisions regarding casino licensing on Saipan.
Outlook and Final Remarks
As the CCC deliberates on the proposed settlement, the outcome will have far-reaching implications for both IPI and the Northern Mariana Islands’ casino industry. The decision will not only determine IPI’s future but also set precedents for regulatory oversight and financial accountability within the jurisdiction.
The saga between IPI and the CCC underscores the complexities and challenges of managing large-scale casino operations in a regulated environment. The proposed settlement represents a critical juncture, signaling potential resolutions or further escalations in this ongoing legal and financial dispute.