A major casino resort project in Saipan has been powered by new investments. The Hong Kong investment company Imperial Pacific was reported to have increased the amount of money it planned to invest in its Saipan casino facili. Initially, the amount set aside was approximately $3 billion but now, the investment was doubled to reach $7 billion.
The company is believed to have saved money from its other businesses, in order to be able to focus on providing sufficient funds to Saipan.
On August 14th, Imperial Pacific signed a deal with the Commonwealth Lottery Commission regarding the license for building the resort. The deal is considered as the most significant one that the CNMI has inked so far. The contract will be valid for forty years.
One of the businesses, which are going to experience difficulties caused by the change of budgeting is the Hengsheng Group, which is currently of the biggest gambling operators in Macau.
What made Hengsheng officials so concerned, is the fact that the revenues have been unstable recently and there is a decline in the number of players who visit Macau-based casinos in general. The strict policies imposed in Macau in order that corruption schemes are reduced, are believed to be an additional factor which has led to the stagnation of the local economy.
As a matter of fact, the decision about the drastic increase of the initial investment was made after careful consideration of the current situation on the Asian gambling market, and the competition the new casino is going to face.
In other words, Imperial Pacific executives decided to double the investment with the aim of turning the Saipan casino into a universal resort – the biggest of its kind in both Macau or Singapore. The project is to be completed within the next five years and once finished, it will offer to its visitors 5,000 rooms as well as an immense number of entertainment facilities.
Apart from Imperial Pacific’s desire to make the resort one of its kind, people familiar with the matter suspected an underlying reason for the sudden increase of the investment.
Prominent companies such as Las Vegas Sands and MGM Resorts are also willing to acquire land and establish casino resorts in the region, so Imperial Pacific officials want to make sure they have all the chances of becoming the company which is given the green light for building the resort.
