Decision pending in arbitration hearing between IPI and CCC

The legal dispute between Imperial Pacific International and the Commonwealth Casino Commission awaits a decision.

Northern Mariana Islands.- Commonwealth Casino Commission (CCC) board chair Edward C. DeLeon Guerrero says arbitrator Thomas J. Brewer has yet to deliver a decision following the three-day arbitration with Imperial Pacific International in Honolulu, Hawaii.

The outcome could have far-reaching implications for the gaming industry in Saipan and the islands as a whole, potentially deciding the future of IPI’s exclusive casino licence. The legal dispute surrounds the ability of IPI to fulfil the financial obligations of its Casino Licence Agreement. It was brought before the US District Court for the NMI after IPI appealed againsed its licence suspension.

The company has invoked a force majeure defence, citing the impact of Super Typhoon Yutu followed by the Covid-19 pandemic on its operations. In August 2022, the court granted IPI’s request for a preliminary injunction, allowing the company to pursue arbitration.

While there is no specified timeframe for Brewer to issue a decision, DeLeon Guerrero expressed hope that the Commonwealth of the Northern Mariana Islands (CNMI) will prevail in the arbitration.

CCC and IPI have ongoing litigations in CNMI courts. The casino operator has appealed a ruling that affirmed CCC’s suspension of its exclusive casino licence, while the CCC appealed a decision granting IPI’s request for a preliminary injunction. The CNMI Supreme Court and the US Court of Appeals for the Ninth Circuit are respectively currently reviewing these appeals.

Several members of the islands’ Senate have spoken out in favour of allowing more casino licences. Ralph N Yumul, the house floor leader, introduced a bill to allow five casino licences in Saipan. Meanwhile, in March, Cui Lijie, the majority owner of IPI stated that she was still seeking new investors to help reopen the operator’s Garapan casino resort.