The entertainment sector in Aruba faces a significant loss of 16 million. Princess Casino, located at the Embassy Suites facilities, has confirmed it is in the process of leaving the island after a prolonged struggle to achieve normal financial operations within the local Aruban market.
The opening of Princess Casino was designed to provide an additional option to Aruba’s tourism offering. However, from day one, the company encountered obstacles in the local banking system, which limited its ability to operate efficiently.
A legal battle with no effective result The central conflict became the difficulty in opening and maintaining the bank accounts necessary for the daily operation of a casino. The situation escalated to the courtroom, where Princess Casino brought a case against a local banking entity. According to the rulings issued, both in the first instance and on appeal, the judge ruled in favor of the casino. However, compliance with these decisions remained limited. Although, after costly legal proceedings, the bank opted to open a local account, they persisted in keeping international accounts closed.
The operational impact For a casino operation, access to international banking services is vital, as a large part of its tourist clientele uses international payment instruments. This ongoing restriction prevented the casino from operating optimally, creating an unbearable competitive and operational disadvantage. The banking association in Aruba, which determines policy lines and compliance criteria, has been under scrutiny by many citizens. There is criticism that the banking sector has exceeded its role, especially when they do not honor judicial rulings, which creates a worrying precedent for the business climate in Aruba.
The decision to withdraw The owner of Princess Casino indicated that the decision to withdraw from Aruba did not happen overnight. “Doing business should not be a constant struggle. It should be a ‘win-win’ relationship, both for Aruba and for the merchant bringing investment and product to the island.”
The fact that, after winning two court cases, the administrative work and obstacles persisted, led to the conclusion that the current business environment is not sustainable for their operation. Preparations are already underway for the casino to close its doors at Embassy Suites and leave the island. This exit raises serious questions regarding legal security for foreign investors in Aruba and the autonomy of the banking sector in the face of court authority.