TLDR
- Team King Investment bought Imperial Pacific Palace in Saipan for $13 million at a bankruptcy auction
- The casino resort was originally planned as a $7 billion project by Imperial Pacific International but never fully completed
- Imperial Pacific closed permanently in March 2020 during COVID pandemic after facing money laundering allegations and unpaid debts
- Team King is led by former Imperial Pacific executives, raising concerns about the property’s future
- The new owners would need to obtain separate gaming licenses if they want to operate casino activities
Team King Investment has acquired the defunct Imperial Pacific Palace casino resort in Saipan for $13 million at a bankruptcy auction. The purchase marks the end of a troubled chapter for what was once envisioned as a $7 billion luxury gaming destination.
The Imperial Pacific resort was originally developed by Hong Kong-based Imperial Pacific International starting in 2014. The company planned to build a massive 4,000-room luxury casino resort on the western Pacific island, which is part of the Northern Mariana Islands, a US commonwealth.
When Imperial Pacific Palace opened in 2016, it initially generated massive revenues from high-roller gambling. The casino became one of the highest-grossing properties in the world, with VIP volume reaching $49.5 billion in 2017 alone across just 18 gaming tables.
The property’s success was short-lived due to mounting legal and financial problems. Imperial Pacific International faced allegations of money laundering throughout its operation period.
The US Department of Labor awarded $5.4 million to workers in 2020 who claimed they worked 24-hour shifts for minimal pay. Gaming executive Joshua Gray also won a $5 million judgment against the company for discriminatory hiring practices.
Financial Troubles Mount
Imperial Pacific International failed to pay contractors and fell behind on licensing fees owed to the Commonwealth of Northern Mariana Islands. The company also struggled to complete construction of the resort while managing its operational costs.
The COVID-19 pandemic dealt the final blow to the struggling property. Imperial Pacific Palace closed in March 2020 and never reopened despite the company’s hopes for reorganization.
Imperial Pacific International filed for Chapter 11 bankruptcy in April 2024 with $165.8 million in liabilities. The beachfront resort had been deteriorating while sitting empty and exposed to the elements.
New Ownership Raises Questions
Team King Investment submitted its $12.95 million bid earlier this year, competing against Ji Xiaobo, the son of Imperial Pacific’s former owner Cui Lijie. The company’s bid received official approval in April, with the property transfer completed last week.
The new ownership has raised concerns because Team King is led by Howyo Chi, a former Imperial Pacific director. The company’s primary founder is Hiroshi Kaneko, CEO of Japan Kyosei Group and a former Imperial Pacific shareholder.
Creditors had objected to Team King’s bid due to these connections with the previous failed operation. The resolution was further delayed by a dispute over a ground lease covering 19,204 square meters between Imperial Pacific and the Department of Public Lands.
Team King Investment will need to obtain separate gaming licenses if it plans to operate casino activities at the property. Restoration and completion of the resort would require an estimated $150 million investment, according to industry experts.
