Casino licence rejection by Gaming Authority…Sleepin did not prove it was financially sound

Nov 08, 2016 News

Almost eight months after a new Gaming Authority was named, it has rendered its first decision on a casino licence application.
Yesterday, the authority confirmed that it has turned down the application of Sleepin International Hotel and Casino Inc., of Lot 252 South Street, Lacytown, Georgetown.
The application was made on August 2, 2016 and was for the granting of a Casino Operator’s License and a Casino Premises License, the authority said.
“The authority wishes to state that having received and thoroughly considered the application it unanimously found no evidence upon which it could arrive at a determination that Sleepin International Hotel & Casino Inc. qualifies for the issuance of the licenses applied for, having regard to its failure to provide the authority with documents evidencing its financial soundness and capability, one of the critical criteria for the granting of such licenses,” the statement said yesterday.
According to the directors of the authority, they saw this deficiency as a grave defect in the application, which “necessitates a refusal of the applications for a Casino Operator’s License and a Casino Premises License, since the regulations Section 29 (a) (1) (c) speak clearly and specifically to “the financial soundness and financial capability of the applicant.’”
Sleepin has since been notified accordingly.
Officials yesterday also noted that the casinos operating in Guyana have to comply with strict anti-money laundering laws that have been implemented.
Contacted yesterday, Sleepin’s main principal, Clifton Bacchus, disclosed that indeed he has been notified, and has since taken steps to meet requirements.
According to the businessman, he has started transferring a number of properties that have no mortgages or encumbrances, to the hotel’s assets.
Bacchus is hoping to increase the assets by US$3M ($600M) with the transfers.
This move will be to show that the casino has the financial resources and assets, Bacchus said.
Sleepin is expecting these transfers to take about two months with the entity to make its case to Gaming Authority once more.
There has been high interest in casino licences for the city since the decision was taken by the Bharrat Jagdeo administration in 2007 to allow for legal and organized gaming.
The regulations allow for three casino licences per region, making a maximum of 30 casinos that the country can have at any one time.
The only casino operating now is Princess Casino, at Providence, East Bank Demerara.
The previous PPP/C has earmarked one for the Marriott Hotel, Kingston, and it appears that Sleepin was promised one too.
However, the Granger administration had announced that it will be handling all casino applications as new ones and would review applications case-by-case.
The Gaming Authority is chaired by attorney-at-law, Roysdale Forde.
With regards to Sleepin, Bacchus yesterday said that the entity, if granted a casino licence, would be able to provide employment for up to 400 persons.
Currently, the hotel is operating 40 rooms and wants to ramp this up by another 110 rooms within the next few months.
For the casino, he had teamed up with Pasha Global, a company out of Suriname.
The hotel and proposed casino location had met with objections from at least one businessman, who said it was located too near to places of worship and Queenstown, an upscale neighbourhood.
However, Bacchus had pointed to the nearness of the Princess Casino to a private school, mandir and mosque.

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