Two U.S. investors are interested in operating a casino in Saipan. The holder of the license to operate there, Imperial Pacific International (IPI), which owns the incomplete Imperial Palace, is likely to lose that license in May.
Saipan is part of the e Commonwealth of the Northern Mariana Islands (CNMI), a U.S. trust territory in the Western Pacific.
Commonwealth Casino Commission Executive Director Andrew Yeom recently told reporters he has been approached by two New Jersey investors about operating both brick-and-mortar and online casinos.
The Saipan Tribune, which reported the statement, didn’t clarify whether the investors said they were interested in acquiring the unfinished Imperial Palace. The casino has been closed for two years due to Covid. Its license was suspended a year ago due to failing to pay annual fees and taxes due on the license.
It owes a $15.5 million license fee and has also not followed the CCC order to pay the money it owes its vendors. It also owes a $3.1 million in regulatory fees and has also failed to keep its minimum $2 billion capital requirement.
Yeom sought the suspension after filing five complaints against the operator.
A bill has been introduced in the Saipan Senate calling for revamping casino regulations. “It is more than probable that the exclusive casino operator will not be able to complete the construction of its initial gaming facility and overcome all of its financial and legal problems which may result in the revocation of its casino license,” says one of the bills.
Meanwhile, the management of IPI has told its remaining employees that it can’t pay their utility bills. It still pays 15 construction workers, 17 security guards and eight administrative staffers. They live in an apartment paid for by IPI.
In a letter to the employees IPI wrote, “With the financial challenges it faces, we inform you that IPI cannot meet the monthly obligation of utility services payable and due on March 15, 2022 for the Queen’s Apartment property.” It added that relocation options would be offered to the employees.
In a related development, IPI announced it has appointed Chinese accountant Chen Feng as joint chairman and executive director. Chen has worked in Mainland China in finance-related jobs for several industrial firms.
Also appointed to the IIP board is Chi Yuan, as an independent non-executive director. Chi is described as being involved in “the capital operation of various enterprises since 2007, including the enterprises of food manufacturing, textile, shoe manufacturing, catering chain, valve manufacturing and leather manufacturing [and] education.”
The company has seen several executives appointed and then resign in the last few years.
