The Commonwealth of the Northern Mariana Islands (CNMI) is preparing legislation to disband its gaming commission, shifting its focus toward igaming as the next step.
On February 4, CNMI Representative Ralph N. Yumul informed Marianas Variety that a House committee is reviewing the 2014 laws that legalized gaming and created the Commonwealth Casino Commission (CCC).
If approved, the legislation would shift regulatory enforcement to the lottery commission, effectively dissolving the CCC, Yumul stated.
Committee members are also exploring online gaming opportunities and considering ways to market them globally, Yumul added.
According to Yumul, the CCC is no longer functional because it is directly tied to CNMI’s sole casino licensee.
That licensee, Imperial Pacific International (IPI), has been at the center of a disastrous experience for CNMI.
A decade ago, IPI launched a temporary casino, Best Sunshine Live, inside a shopping mall on Saipan, the largest island in CNMI.
Initially, it reported Macau-level revenues, but its permanent resort in Garapan, which opened with much anticipation in 2017, ultimately failed spectacularly.
Here’s a timeline:
2014
Lawmakers created the CCC to regulate the gaming industry in CNMI. According to the legislation, “the entire commonwealth should benefit from well-regulated casino gambling in these challenging economic times." A properly managed casino sector was expected to boost tourism, drive economic growth, and generate essential government revenue.
That same year, the CNMI Lottery Commission awarded an exclusive gaming license to Hong Kong-listed IPI.
2015
Best Sunshine Live launches inside the T-Galleria shopping mall, making headlines by competing with Macau’s VIP turnover. Then-CEO Mark Brown tells Global Gaming Business, “Our rolling-chip program surprised many, hitting $1.6 billion (£1.28 billion/€1.5 billion) in a single month… and it just kept growing. VIPs love the island and our hospitality.”
At the same time, IPI begins construction on an opulent permanent resort in Garapan, featuring marble floors, gilded towers, two massive 20-ton Swarovski dragon sculptures, and a sprawling 140,000-square-foot casino floor.
However, progress is disrupted when Typhoon Soudelor strikes, prompting the US Federal Emergency Management Agency to declare the CNMI a “major disaster” area. Since World War II, the Western Pacific island chain has been a US territory.
2017
The permanent resort opens, leading to the closure of Best Sunshine. Initially named Grand Mariana and later rebranded as Imperial Pacific Palace, the property receives praise from visitors who call it “impressive, amazing, and beautiful.” However, construction remains unfinished. (Spoiler: it will never be completed.)
2018
Super-Typhoon Yutu, a Category 5 storm with 180 mph winds, devastates the CNMI, causing severe damage and further delaying IPI’s construction. Meanwhile, a series of CEOs take charge and depart.
2019
Three IPI executives face federal indictments for racketeering and money laundering. The US Department of Justice also accuses them of illegal employment practices, alleging they hired hundreds of unskilled, undocumented workers for the Saipan resort’s construction.
Meanwhile, Forbes reports that within its first four years, IPI amassed $2 billion in player debt, ultimately writing off two-thirds of it.
2020
Imperial Pacific Palace shuts down in March due to the Covid-19 pandemic. Revenue falls dramatically to $3.1 million, down from a peak of $412 million in 2018.
2021
The CCC files complaints against IPI for not paying the $15.5 million annual license fee and $3.1 million regulatory fee in 2020. IPI also failed to contribute $20 million to the community benefit fund in 2018 and 2019, did not meet the $2 billion capital requirement, and failed to pay its vendors. As a result, the CCC suspends IPI’s license.
2022
After being closed for two years, Imperial Pacific Palace auctions off assets, including gaming equipment and the Swarovski dragons, to settle debts.
The Pacific Island Times criticizes the operator for the "contrived grandeur" of Imperial Pacific Palace, now "replaced by desolation," and points out that the unfinished resort, exposed to the elements, is deteriorating into "a rust bucket."
IPI argues that the pandemic was a force majeure that freed it from its financial obligations. The company also claims that the CCC violated its constitutional rights by attempting to revoke its casino license.
2024
Imperial Pacific Palace remains closed. An IPI attorney acknowledges that it has been "exposed to the elements and is in poor condition." Despite this, the company is trying to sell the property, which could require up to $150 million to finish.
Marianas Variety reports that the CCC, which has closed its office and laid off over 50 employees, is "desperately in need of funds." Meanwhile, IPI still owes more than $160 million to the government and various creditors.
2025
CCC chair Edward C. Deleon Guerrero and commissioner Mario Taitano declined to comment on the potential dissolution of the regulator.
Yamul states that the majority of CNMI residents no longer support a brick-and-mortar casino.
"We're focusing on internet gaming," he says, which may include sports betting. Lawmakers plan to base the new industry on the successful igaming models in US states.
