Failure of $360 million NMI casino project resulting from overreliance on Chinese gamblers: report

Original Story by AGBrief Editorial

A Macau-based business’s director revealed that their planned casino resort project mainly depended on Chinese gamblers. The company had already agreed to lease land on the Northern Mariana Island of Tinian. After China implemented stringent restrictions on its residents traveling abroad for gambling, this dependence became untenable.

According to the Saipan Tribune, Johnny Leong, the director of Alter City Group (ACG), informed Department of Public Lands (DPL) representatives that Chinese citizens were no longer permitted to travel abroad to gamble and that casino operators were not allowed to market to or assist Chinese nationals in their travel.

The DPL decided to end the lease arrangement with the Macau-based company before receiving the letter from the company dated July 7 of the current year.

ACG had purchased a lease for a 152-hectare island property in 2014 that was meant to be a $360 million casino resort. The initial term of the lease was 25 years, with a 15-year extension option.

Leong added that ACG looked into relationships with organizations in surrounding nations in an effort to locate alternate sources of customers but ran into problems because of the murky issue involving Chinese gamblers.

Leong claimed that all parties concerned were uncertain and unable to commit.The DPL, however, rejected this defense and revoked ACG’s permission to utilize the leased property.