INNOVATE GAMING | MARKETS - OCEANIA
INNOVATE GAMING | MARKETS - OCEANIA
Samoa
Saipan
Samoa, a tiny country that sits 5,550km west of Australia in the South Pacific Ocean, is looking to boost
tourism with casino gaming. The Samoan government is seeking a new operator after it withdrew a
license issued to Chinese group ETG earlier this year.
After numerous failed attempts to legalise casinos in Saipan, a self-governed US territory in the western
Pacific, the local government is considering a new gambling measure. It aims to create a cash infusion for
the island’s Retirement Fund, which is eight months from depleting.
The Gambling Control Authority (GCA) of Samoa awarded two casino licenses in February to Aggie
Greys Beach Resort in Samoa and Exhibition Tourism Group (ETG) of China. Seven companies applied
for the licenses but Fanene Samau Etuale, GCSA Chairman, indicated that “one reason Aggie’s won one
of the licenses is its successful history as a hotel operator since 1937” and “it was not difficult to award
ETG the other license” as it is known for “tourism development”.
The House of Representative passed the Saipan casino
gambling measure [HB 18-45] by a 13-7 vote last month
that would legalise casinos and allow electronic gaming
machines at hotels in the Commonwealth of Northern
Mariana Islands (CNMI). There are currently casinos in the
archipelago’s inhabited areas of Tinian and Rota, but not in
Saipan, the most densely populated island where the capital
is located.
“We’ve got to be able to see the bigger picture,” expressed Lupesina Fred Grey, Owner & Director of
Aggie Greys, the nation’s second largest employer. “We need to look at the possibility of creating more
employment, foreign exchange, tourism development, new activities for tourism and taxes for the
government and the Totalisator Agency Board, which will ultimately benefit young people.”
Aggie Greys has contracted Macau-based casino management group Asia Pacific Gambling to manage
assist with management and operation of the casino. It is expected to launch the facility late this year or
early next year, which would have been two to three years ahead of ETG.
The Chinese firm had planned to build a 500-room hotel for its
gaming operation, but the plan was soon dismissed after it was
discovered that ETG Chairman, Deng Hong was being investigated
for corruption by Communist Party officials over land deals in
China. After the accusations were aired internationally, the Samoan
government earlier this month withdrew its license.
“We need to make a decision about whether we go back to market
for the license or whether we just continue on with one license,”
said Robbie Kearney, GCA CEO. “The GCA board will, over the
next couple of months, give consideration to what they’re going to
do. Some decisions will be made and we’ll make the appropriate
announcements at the appropriate time.”
Under Samoan law, casinos can only be operated within hotels and
only foreign passport holders are allowed to play. It was passed in
2010 as a way to help recover from a 2009 tsunami that wiped away
30-percent of the country’s economy. In 2012, Samoa’s economy was
reportedly worth a mere $677 million.
“Samoa needs to be innovative and move ahead with the times,” added Lupesina. “There is a real need to
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