The Solomon Islands government says it will have to pass legislation to grant a third casino license in the country.
A government spokesperson, Alfred Maesulia, says the government has already issued two licenses to Asian investors which is the lawfully permissible number.
He says the Constantinou Group of Papua New Guinea bought land of the National Arts Gallery in Honiara earlier this year to build a five star hotel.
Mr Maesulia says the developer wants a casino license to continue with the development.
"Before the government sold that hotel, maybe it didn't know that part of the deal was to set up a casino in there. The problem is that the government has already approved casino development in Solomon Island. It approved only two casinos to be set up in Solomon Islands."