When it first opened in 2017, the Imperial Pacific International (IPI) casino resort on Saipan promised to lift the local economy, boost tourism and inject millions of dollars into government coffers.
Five years later, the still-unfinished Imperial Pacific Palace has failed on all counts—so much so that Rep. Vicente C. Camacho told Marianas Variety he’d like to “put dynamite around it and just blow it up into smithereens.”
Asia Gaming Brief called the resort “a white elephant” on Saipan, part of the Northern Mariana Islands. Construction on the property came to a halt in January, when IPI’s chairwoman was found in contempt of court; in April, IPI’s license to operate was suspended. The Hong Kong-listed company has amassed millions of dollars in debt, including past-due wages, legal settlements and government fees. Its assets, including gaming equipment, will be sold off to settle a $5.4 million suit by former workers.
While other operators may be interested in the market, they may not be interested in the now-shuttered resort. Rep. Tina Sablan recently told AGB that lawmakers worry the palatial property may not have been built to code.
Casino Control Commission (CCC) Executive Director Andrew Yeom says he’s heard from would-be operators. “They, the operators, are the ones who can tell how to go about these things. I am interested to hear from them myself,” he said, but said it might be better to get out of the casino business. “It is up to you, lawmakers, to pass a bill that will allow multiple casino licenses—or kill the industry altogether, that is up to you. … I think we should just kill it and dynamite it down.”
A cluster of casinos might benefit the commonwealth economy, but many investors no longer see Saipan as a casino destination, due to the collapse of the VIP market. IPI was touted as a resort for high rollers from across Asia, and its early days, reportedly rivaled Macau for monthly rolling revenues—even when the casino was operating out of a local shopping mall. Those figures raised eyebrows and sparked concerns about money laundering.
Inside Asian Gaming reports that IPI’s license will almost certainly be revoked due to its tumultuous history and the company’s failure to pay its bills. IPI has been given six months to pay its outstanding US$15.5 million casino license fee and US$3.1 million regulatory fee, as well as a US$6.6 million fine. That’s unlikely, as the casino closed in March 2020 due to Covid-19.
Chairman Edwin Propst of the House Committee on Gaming told members that Imperial Palace Saipan is now considered to be an abandoned building based on descriptions contained in the building code.
The Commonwealth of the Northern Mariana Islands is a U.S. protectorate.
