Imperial Pacific International has failed to pay its annual $US15 million license fee in full. Now gaming commissioners in the Commonwealth of the Northern Mariana Islands, where IPI operates the only casino resort, Imperial Palace Saipan, have filed a complaint against the operator.
IPI opened its temporary facility in a Garapan shopping mall in 2015, and at first made headlines for generating billions in VIP volume. Today, it’s handicapped by massive uncollected VIP debt. According to an April report in Forbes, Hong Kong-listed IPI declared a loss of nearly HK$3 billion (US$382 million) for last year, has written off more than HK$9.7 billion in player debt, and still carries almost HK$5 billion, more than five times its reported profits since it opened. Not surprisingly, it’s also failed to deliver expected government revenues.
The annual license payment was due August 12. IPI reported that it had paid the fee by wire transfer, but the CCC later discovered it had paid only US$5 million.
“We have issued a complaint today that is going to the commission,” said CCC Executive Director Edward Deleon Guerrero, according to Marianas Variety. “That is the way we’re going to enforce this. Now IPI has 15 calendar days to cure the deficiency.” The debt includes US$502,570 based on a consumer price index adjustment for an outstanding total of US$10,502,570.
According to Inside Asian Gaming, Deleon Guerrero said the CCC has the power to enforce an additional US$50,000 fine for each day after 12 August that the full amount due isn’t paid.
The latest problem follows on the heels of reports that the company has paid just US$41,000 in business gross revenue tax since July 2018. IPI has since suggested it should be allowed to use tax credits earned in recent years in lieu of paying more taxes this year so it can conserve funds for the completion of its Saipan integrated resort.
IAG also reported that IPI owes US$73 million in taxes and debts to vendors; IPI has battled the CCC about the proposed public release of its financial statements. IPI also said earlier this month that it expects to record a net loss for the six months to June 30.
