According to Saipan gaming commissioner Andrew Yeom, regulators in the Commonwealth of the Northern Mariana Islands (CNMI) are “definitely moving in the direction” of canceling the casino license held by Imperial Pacific International (IPI).
It could be the end of a turbulent saga for the Pacific island, which hoped the casino would bring in high-end tourism, big revenues and related economic development. The casino had a bang-up start, generating Macau-sized revenues, even at a temporary location inside a shopping mall. Its success was short-lived. Big revenues were replaced by unpaid, uncollectable debts incurred by Chinese VIPs. The casino allegedly used illegal foreign workers at the resort construction site, then abused those workers, who later sued for damages. Executives came and went.
In April, the Commonwealth Casino Commission suspended IPI’s casino license when it failed to pay a $6.6 million penalty, a $15.5 million annual casino exclusive license fee and a $3.1 million annual casino regulatory fee. To add to the problem, the resort has been closed since March 2020 due to Covid-19.
Commissioners say other operators are interested in applying for a license. But no names have been mentioned, and Governor Ralph Torres says he has not met any potential bidders.
There are assets to be cultivated in the CNMI, a U.S. commonwealth made up of 14 islands. According to CDC Gaming Reports, Saipan, the largest island, has a well-established tourism industry that attracted tourists from Taiwan, Korea and Japan; significantly, it offers visa-free travel from markets such as the Peoples Republic of China.
If IPI’s license is revoked and a successor rides in, that company must commit to completing the resort—a daunting task, as portions of the tower have been exposed to the elements, and there are concerns that the hotel’s contractor did not adhere to construction safety standards.
In addition, the world and the gaming industry have changed in the last year and a half. VIPs aren’t as high-rolling due to Beijing’s crackdown on cross-border tourism and junket promoters. That means mass-market gamblers, not VIPs, would be the casino’s bread-and-butter customers. It is yet to be seen if any operator steps up to the challenge.
Meanwhile, IPI has asked for a five-year extension on its deadline to finish construction of its Imperial Pacific Palace.
