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5/1/2025—The Commonwealth Casino Commission will exercise its full regulatory authority and require Team King Investments to undergo a thorough licensing process if the company seeks to operate a casino on Saipan, despite a federal court's recent approval of its $12.95-million bid for Imperial Pacific International (CNMI) LLC's casino assets.
In an interview conducted during a break in the CCC's April 30 monthly meeting at its office in Spring Plaza, Gualo Rai, CCC chair Edward DeLeon Guerrero said the casino regulator was not consulted in the formation of the court-approved stipulation between the debtor, creditor committee, and government attorneys. Yet the final stipulation, approved by CNMI Bankruptcy Court designated judge Robert Faris, included language suggesting CCC agreement.
"We were not privy to the stipulated agreement. It was stated in court that CCC agreed, but we did not," DeLeon Guerrero said. "We were not consulted. But we're told the court's order doesn't affect our rights as a regulatory body, and I hope that proves true."
Under the terms of the court-approved sale, Team King now has 270 days to pursue a casino license with the CCC.
However, DeLeon Guerrero clarified that the sale does not include the license itself and any transfer or reissuance would require a complete application, payment of a non-refundable application fee (estimated at close to $1 million), and a full-scale independent investigation into the company's background, finances, and ownership.
"They have to start all over. The chips are no longer usable or redeemable. If Team King wants a license, they need to begin the entire regulatory process from scratch," he said.
If and when Team King files an application, the CCC plans to issue a request for proposals to contract an outside investigative firm to conduct a comprehensive due diligence review. It also intends to rehire furloughed or displaced investigative personnel, many of whom had previously been trained by the University of Nevada and are still available within the CNMI government workforce.
"We had some of the best-trained investigators. They're still on-island, still capable, and we want them back on this case," DeLeon Guerrero said.
CCC is aware of reports that a Japanese banking entity previously affiliated with IPI, may be connected to Team King's bid. According to Deleon Guerrero, the bank once committed $500 million to IPI, and approximately $150 million of that commitment was used during IPI's active years.
"If it's the same backers, they may still have $250 million in reserve," he said. "That could go a long way in completing the unfinished hotel and restarting operations. But we don't issue licenses based on speculation. We regulate based on verified suitability."
He added that any known or unknown connections to IPI will be thoroughly investigated as part of the licensing process. If any board member or major investor is found unsuitable, CCC reserves the right to require their removal as a condition of licensure.
Throughout the April 30 CCC meeting, commissioners expressed frustration that it has no personnel funding under the current fiscal year budget, and thus cannot carry out its regulatory mandate.
DeLeon Guerrero said CCC retains responsibility for thousands of confidential employment and compliance records from the IPI era. Without office space or an active payroll, he said, CCC may soon default on rent and lose custody of important data.
He called on CCC to formally prepare a certified legal question for submission to the CNMI Supreme Court, seeking clarity on whether the Department of Finance and Office of the Attorney General may legally block access to CCC's earmarked funds.
"We are still a functioning agency under law, and our obligations haven't disappeared," he said.
DeLeon Guerrero made clear that the CCC has permanently terminated junket operator licensing and that no new licensee will be allowed to operate under the old VIP credit model that led to significant uncollectible debts during IPI's operation.
"This time, it's mass market. We're looking at slot machines, electronic gaming, and regulated table games. Not junkets," he said.
He added that any chips produced or distributed under IPI's license are no longer valid and cannot be used, traded, or redeemed.
As of the latest records, IPI still owes the CNMI government $77 million in license fees and an additional $200 million in regulatory obligations. DeLeon Guerrero said that if Team King applies for a new license, CCC may seek to negotiate a separate cure agreement to recoup some of these funds outside the court-supervised creditor distribution, which will likely deliver only cents on the dollar.
He also said CCC is working with lawmakers to reform CNMI gaming laws, including, revising the $15-million annual license fee, updating the requirement for 2,000 five-star hotel rooms, and reviewing the exclusivity clause that limits competition
"We need a law that fits the CNMI today, not just one written for IPI a decade ago," he said.
Despite the challenges, DeLeon Guerrero said he sees a potential opportunity to bring new life to Saipan's stalled gaming industry—but only if the next operator meets all legal and regulatory standards.
"We're open to Team King or any qualified applicant. But we will follow the law and protect the people of the Commonwealth," he said.
"This is a second chance for Saipan's casino project. We won't allow a repeat of the past."
He also gave IPI its due, saying the troubled Hong Kong-based casino company actually saved the CNMI Settlement Fund.
Story by Mark Rabago
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