On January 8, the US. Supreme Court rejected a petition by Saipan casino operator Imperial Pacific International (IPI) to avoid a critical hearing before the Commonwealth Casino Commission (CCC) in the Commonwealth of the Northern Mariana Islands (CNMI).
At stake is IPI’s license to operate its casino, Imperial Pacific Palace, on the western Pacific island. The property has been closed since March 2020, and the operator owes millions in past-due licensing and regulatory fees.
The Guam Daily Post quoted Commissioner Mariano Taitano as saying, “Finally, this issue will come to rest.”
Commissioner Ramon Dela Cruz also was pleased by the high court’s decision, saying, “It was unfortunate that IPI had to take this route in an attempt to avoid paying its obligation to the CNMI government.” He added that IPI has been granted “enough due process” by the local government.
IPI had claimed it couldn’t pay up because of the Covid-19 pandemic, which caused it to close the casino. IPI called the pandemic a “force majeure event.” But at a hearing in January 2023, IPI acknowledged that that event was over.
CNMI Attorney General Edward E. Manibusan applauded the Supreme Court’s decision, saying, “By declining to hear the case, the U.S. Supreme Court left in place the Ninth Circuit ruling,” which held that commissioners weren’t required to enter into nonbinding arbitration regarding the license revocation.
“This victory is important for the people of the commonwealth in enforcing IPI’s failure to meet its contractual and statutory obligations to the people of the CNMI,” he said.
IPI owes $62 million in annual license fees covering 2020 through 2023 due, along with $17.62 million in regulatory fees due to the commission. With fines and penalties, the total comes to $79.62 million.
The hearing will proceed on January 31, almost three years since the license was originally suspended.
Saipan is the largest island in the Northern Mariana Island chain, and a territory of the United States since World War II.
