Strict vetting process
Edward Deleon Guerrero, executive director of the Commonwealth Casino Commission of Saipan, has announced that the regulatory body will set no limit on the number of junket operators who may ply their trade on the U.S.-controlled Pacific island.
To date, a temporary casino, Best Sunshine Live, is the only gaming hall operating on Saipan, the main island of the Commonwealth of the Northern Marianas. A permanent facility is now being developed by the license holder, a unit of Hong Kong-listed gaming investor Imperial Pacific International Holdings Ltd.
The lavish integrated resort, to be known as the Imperial Pacific, is expected to open before the Chinese New Year celebration which begins at the end of January.
The temporary casino has already proven successful. With 16 VIP gaming tables and 32 mass tables, Best Sunshine posted rolling chip volume of about US$1.55 billion in August, Pacific International said in a filing.
“Right now Saipan is the fifth favorite destination by Chinese tourists,” Guerrero told the Saipan Tribune. “We are also fifth in the casino gaming world behind Macau, Las Vegas, Singapore and the Philippines. Now we’re on the world map.”
The regulator has already issued a provisional license to South Korea-based junket runner Big Bang Entertainment, which primarily serves high rollers from Korea and Japan, according to GGRAsia. The government is reviewing 17 additional junket applications, but has not released any of the company names.
“All the applicants are still under review,” Guerrero said. “The casino operator will vet the junket operators too, beginning from the financial perspective. Currently IPI goes through a vetting process before they issue a credit to their VIPs.”
He promised a strict assessment process for the junkets, who make their money arranging travel, accommodations, perks and lines of credit for VIP gamblers. “Once IPI approves the issuance of the credit process, then they will issue a letter of intent to transact with this company as a junket operator. They would then submit that to the CCC, including their findings along with the letter of intent that they would do business with that operator,” Guerrero said.
“CCC would continue to screen the criminal and association background checks from the time the application was submitted and the fees are paid. Once we get the letter of intent and IPI’s findings, we then assess whether or not the applicant requires further vetting. If IPI refuses to issue the letter of intent, that application stops. We do not entertain it anymore,” he added.
The management of Imperial Pacific told GGRAsia last May that the Saipan casino would be able to offer junkets a better revenue-sharing deal than they could get in Macau, which has an effective 40 percent tax on gross gaming revenue.
“The junket operators are a necessary part of the gaming industry,” said Guerrero, explaining the decision to open the door to any suitable operator. “We’re competing in a regional area with the likes of Macau and Singapore.”
While Best Sunshine Live has five VIP rooms, he added, the Imperial Pacific “will have a bigger number to accommodate those who come here to play.”
