IPI sues regulator over alleged breach of license agreement, seeks regulatory fee exemption

The operator of a struggling casino on Saipan, Imperial Pacific International (IPI), is suing the Commonwealth Casino Commission (CCC) for violating their Casino License Agreement. IPI is also asking for an exemption from all regulatory expenses.

IPI was given a warning by the CCC to pay $62 million in outstanding licensing payments within 30 days or face having its license revoked. Due to the pandemic, IPI’s casino, Imperial Palace • Saipan, closed its doors in 2020, and its license was revoked in 2021.

In its lawsuit, the IPI accuses the CCC of violating the US Constitution’s guarantees of due process, takings, contract violations, and wrongful contract impairment. Under the terms of the casino license agreement, IPI is asking for a jury trial and a ruling that it is not subject to regulatory fees or exempt from them.

The company also requests a ruling declaring annual regulatory fees unlawful, an injunction against their enforcement, and reimbursement for any prior regulatory fees already paid. IPI also demands that the court nullify and reverse all decisions made over unpaid invoices, including the suspension of its gaming license.

The Regulatory Fee Statute allegedly levied additional fees, which seriously and unconstitutionally weakened the terms of the Casino License Agreement. According to the argument, IPI was compelled to pay the $3 million annual regulatory cost to keep running its business per the agreement, even though it already contained an annual license price without a regulatory fee.

As an unlawful take without justifiable compensation, the IPI claims that the CCC’s actions amount to a continuous, substantial, and direct interference with its property and contractual rights. The company cites unavoidable circumstances surrounding the closure of its casino in Saipan as the reason for its inability to pay fees.

Original story by: IAG