The newly launched Paga Hill casino project in the city, launched on Friday, October 11 in Port Moresby by Prime Minister James Marape, has drawn serious criticism regarding its license validity.
Opposition Leader Douglas Tomuriesa has raised concerns, pointing to a letter from the National Gaming Control Board (NGCB) as evidence of potential issues with the project.
PNG HAUSBUNG has sighted this letter, which was hand-delivered on October 3rd, 2024, from NGCB Chief Executive Officer Imelda Agon to the NCD Building Board, raising concerns about the approval of the casino’s building permit.
Agon stated that Paga Hill Development Company (PHDC) submitted outdated and incorrect information, which the board may have relied upon when issuing the permit.
The letter explained that the provisional casino license issued to PHDC in 2021 had expired because the company failed to meet the strict conditions required.
Regulations issued on September 19th reiterated the casino’s invalid status.
Agon urged the Building Board to review its decision to approve the project and refrain from issuing any further permits until a valid license is confirmed by NGCB.
The Opposition Leader also used this letter to claim that the casino project was operating without a valid license and should not proceed, questioning why the Prime Minister had endorsed the project.
He further called it a poor investment for the country, point out the lack of basic services such as water, electricity, and security (law and order) in Port Moresby, urging the goverment to focus improving these areas rather than promoting gambling.
Supporting this criticism, West New Britain Governor Sasindran Muthuvel raised moral and economic concerns, stating that the new casino contradicts the country’s Christian values and warned that gambling could deepen poverty in an already vulnerable population.
Muthuvel also expressed concerns about the potential for money laundering, noting that casinos are often linked to such activities, further questioning the government’s support for a project that will operate tax-free in a Special Economic Zone (SEZ), while small businesses continue to struggle under heavy tax burdens.
However, Prime Minister James Marape made it quite clear during Friday’s launch, that casino is meant for international tourists and expatriates, not local citizens.
“We’re targeting tourists and residents with high incomes who will boost the economy through their spending,” Marape said, further highlighting the job opportunities that the project would create, particularly for the Motu Koita people, and the potential for the casino to stimulate economic growth.”
PHDC Chairman Peter Barge, at the launch, had also praised the casino’s potential to boost Papua New Guinea’s tourism industry, describing tourism as the country’s most underutilized asset, and noted that the casino is part of a broader plan to develop Port Moresby into a major destination.
The casino will feature luxury hotels, gaming tables, and high-end facilities, with strict entry rules to ensure that only wealthy tourists and expatriates have access.
The Paga Hill SEZ Satellite Casino is expected to be completed within six months, promising to bring jobs and economic benefits to the region.
However, the concerns raised about its license and the broader criticism from political leaders suggest that the project could face significant challenges before it becomes fully operational.