Saipan casino assets to change hands

Hong Kong-listed Imperial Pacific International, which briefly operated the only integrated casino resort on Saipan, will soon transfer its remaining assets to a new owner.

Saipan is part of the Commonwealth of the Northern Mariana Islands (CNMI), a US territory since the Second World War. In 2016, IPI opened a temporary casino in a Garapan mall. At the same time, it undertook construction of a permanent, multibillion-dollar beachfront resort.

The high-roller casino at Imperial Pacific Palace was once one of the highest-grossing in the world, turning over more per-table bets than the most profitable casinos in Las Vegas and Macau. In 2017, for example, it reported VIP volume of $49.5 billion on an average of 18 tables.

But the sizzle soon fizzled. The beachfront resort was still unfinished in March 2020, when it closed due to the Covid-19 pandemic. Construction ceased in 2021, and IPI defaulted on millions in annual fees.

That same year, the Commonwealth Casino Commission of the Northern Mariana Islands suspended the operator’s gaming licence. And in 2022, the Hong Kong Stock Exchange suspended trading of IPI shares. Since then, according to IPI attorney Chuck Choi, the resort has been “open to the elements, and is currently in poor condition”.

What’s next for Imperial Pacific Palace?

IPI filed for Chapter 11 bankruptcy in April 2024, citing more than $165.8 million in liabilities. In a February auction, Team King Investment (CNMI) LLC was the highest bidder at a court-approved auction. It paid $12.9 million for IPI’s assets, including the deteriorating resort. The bid also includes an option to acquire IPI’s gaming licence.

But the sale can’t close until a dispute is resolved regarding IPI’s ground lease, which spans more than 19,000 square metres. According to Marianas Variety, IPI and Team King have signed the lease agreement and are waiting for the Department of Public Lands to do likewise. Choi added that “as a gesture of good faith”, Team King will pay the $207,000 annual ground rent effective through April 2026.

So what is to become of the once-grand Imperial Pacific Palace? If Team King chooses to complete and reopen the lavish resort, it would need an additional $150 million to finish the job.

The resumption of gaming at the property is another issue. In June, the government of the CNMI abolished the Commonwealth Casino Commission. The CCC, which was to be funded by regulatory fees from IPI, closed its office in 2023, and its commissioners have gone unpaid since 2021.

 As Imperial Pacific International’s bankruptcy case lumbers to a close, the assets of the embattled Saipan casino operator will transfer to a new owner.