US-backed company inches closer to building casino resort in Tonga: report

US-backed company inches closer to building casino resort in Tonga: report

Despite the government’s stance on gambling, a U.S.-backed company has reportedly secured a tentative approval to build a casino resort in the kingdom of Tonga.

US-backed company inches closer to building casino resort in Tonga: reportIn November, foreign investment company Amira-Union-Gatti LLP submitted a government proposal to build a tourism facility called “Tavake Tamafua Investment Project,” which will see three facilities built on the South Pacific island—an airport hotel and shopping mall, some luxury villas and a gaming facility called “the Aria Tourism Entertainment Gaming Resort.”

United States-based tribal company Red Warrior Entertainment—the “foreign team counterpart” of Amira-Union-Gatti—announced early this year that they have received the “Exclusive National Master Gaming License” from the government of Tonga. The license, described as “the first of its kind issued from Tonga,” covers Class I, II and III gaming.

Tonga’s Prime Minister Office, however, denied the report on grounds that gambling is prohibited in the islands under the kingdom’s Criminal Offences Act 1926, so “any intention from Red Warrior Entertainment or any casino company to apply for a gaming license would be futile.”

New reports, however, indicate that the process to secure that gaming license continues. In fact, the investment company is “on the verge of fulfilling requirements to move on to the next step” of the process, Radio New Zealand reported, quoting one of the Tavake Tamafua’s directors.

In an interview with Radio Tonga, the company revealed that Minister Tevita Lavemaau informed them “that government supports the initiative to establish a casino and will grant an exclusive right under conditions to build in Tonga within the next two years.”

Among the conditions for the gaming license was that Tavake Tamafua needs to invest more than $450 million in infrastructure, and that 80 percent of labor must be sourced from Tonga.

Havea Gatti, of Tavake Tamafua, noted that the kingdom needs to change its regulations before a license can be granted, but that doesn’t stop the company, which is “on the way to meeting the conditions needed.”

Tonga’s cabinet initially supported the project, but last Nov. 11, cabinet members changed their mind and nixed the plan for the Aria Tourism Entertainment Gaming Resort, leaving behind the plans for the Pearl Airport Hotel and Shopping Mall and the Frangipani Luxevillas “for final consideration and approval.”