Poker Writer
A lavish casino project on a remote island has ended in failure after Imperial Pacific International (IPI) filed for bankruptcy and is in the process of having its assets liquidated. The casino resort opened in 2016 but remained unfinished until early 2020, when COVID stopped any progress. After 2020, the property never reopened.
The Hong Kong-based company IPI then lost its gambling license after defaulting on millions in annual fees. The property is currently in poor condition after being exposed to the elements and left unmaintained for six years. Its once-glitzy marble floors and the gold-and-crystal dragon sculpture now sit in decay.
There may be a bidding war for the rights after IPI’s bankruptcy, including from an American entity. A new construction project would be very costly, with an estimated tag of about $100 to $150 million.
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A Casino on a Remote Island Was Always a Strange Bet
The casino resort, Imperial Pacific Palace, sits on a beachfront resort in Garapan, Saipan, which is part of U.S. territory in the Northern Mariana Islands.
This was an ambitious project from the start, as the island is in the deep Pacific, very far from any major population center. The population of Saipan itself is only 43,000. The closest country to Saipan is the Philippines, which is still a five-hour flight away. There is little reason for Filipino citizens to go to Saipan, as their own islands have plenty of beaches, resorts, and casinos. Likewise, a six-hour flight from Japan is also cumbersome.
Despite being U.S. territory as part of the Commonwealth of Northern Mariana Islands, it’s also very far from the U.S. There are no military bases in Saipan from which the casino could draw business, either.
Guam, another U.S. territory about 45 minutes away by plane, probably represents the only nearby market with any potential. Guam is strictly against gambling, and a jaunt to Saipan could represent an easy, attractive escape for those looking to gamble. But Guam also has a small population of only 170,000, which is not much to rely on as the main source of patrons.
No Pipeline of Patrons for Saipan
In 2014, the Hong Kong company budgeted $7 billion for the Saipan casino. The original motivation for the Saipan casino project may have been to emulate other successful island resort casino locations worldwide, such as the ones in Aruba and Cyprus. The difference is that those are close to high-population areas and attractive, easy beach destinations for hosting a casino.
In Saipan, the casino catered to a nonexistent patron pipeline. There are already closer destinations in Asia, such as the casinos in Jeju or the Philippines. There are already casinos in Australia and nearby destinations for Chinese gamblers.
Saipan appears to have never had a real market for a casino. Hence, the project has ended unceremoniously in a dismal bankruptcy, unless someone decides to start pouring in money again to revive it.
