New investors on the horizon?
By a unanimous vote, the Tinian Casino Gaming Control Commission cancelled the gaming license once held by Hong Kong Entertainment, operator of the Tinian Dynasty Hotel & Casino. According to Postguam.com, Tinian Mayor Joey Patrick San Nicolas says HKE has not met the standards set by law.
The 5-0 vote came down at a special meeting May 11. Commission Executive Director William Cing recommended the cancellation, saying HKE did not comply with audit requirements from 2008 through 2014 and also failed to maintain separate bank accounts for the casino. Cing also said HKE “turned over the administration, management and operational control of the casino to persons who have not gone through a suitability check,” the website reported.
In a statement, San Nicolas said, “While it was my hope that the municipality could somehow assist HKE resume operations of the Dynasty casino, the liabilities that have been incurred by HKE in the course of conducting gaming activities are insurmountable.
“As I stated at the beginning of my administration, we will do everything in our ability to continue fostering our casino industry. However, it has to be clear that these endeavors must be within the confines of the Gaming Act. Given all that has been said and done, HKE could not meet the standards set forth by law, and I applaud them for recognizing that while we are casino-friendly, we have rules that must be followed and this announcement was to be expected.”
The resort in the Northern Marianas Islands, which closed last year after a typhoon, could soon have a new owner. The World Casino News recently reported that “at least five groups” are interested in taking over the 412-room property, which was set to reopen in December, and again in April, but failed to resume operations.
San Nicolas was proactive in seeking new ownership, the News, and has said he would travel to China in search of investors. San Nicolas also said a recent trip to Hong Kong says at yielded one strong lead. “This investor has visited Tinian and has begun discussions with the Tinian Casino Gaming Control Commission to begin their application process,” said San Nicolas in a statement earlier this month. “It is my understanding that the investigation of the applicant will begin shortly … I am cautiously optimistic that we will see the Dynasty doors open sometime later this year, if not early next year.”
Marianas Variety identified Tim Chen of Chinese Strategic Holdings, as the interested investor. San Nicolas has described Chinese Strategic as one of the initial investors for Mega Star when it purchased Hong Kong Entertainment.
Tinian has not collected any government revenues since the property, its only major funding source, closed, said San Nicolas. “This has had a substantial impact on our ability to deliver programs and services.”
The island and the industry are “definitely far from being out of the woods,” he said, “but through the leadership’s support, we were able to reach out to seek more investors and those efforts look like they are going to pay off. … We should also expect a minimum of $1 million a year from casino license fees that would keep the gaming commission in operation to do what they need to in terms of vetting interested new applicants. I am cautiously optimistic that with hard work and continued collaboration with the Tinian leadership, we will see the Tinian Dynasty doors open sooner rather than later but with probably a different name.”
