Reviving Rota: The Controversial Casino Plans in the Northern Mariana Islands
In a bold move that has sparked both excitement and skepticism, lawmakers in the Northern Mariana Islands (NMI) have granted a provisional license to South Korea’s IH Group to reintroduce land-based and online gaming on the island of Rota. While the IH Group is touting plans to redevelop the long-abandoned Rota Resort and Country Club into a vibrant integrated resort, local officials express concerns over the feasibility and legality of these aspirations.
License Granted Amid Uncertainty
The announcement came from IH Chairman Kyunam Kim in September, following the company’s receipt of a license that allows it to operate both onsite and online gaming in the region. The ambitious plan includes the construction of a casino, a 276-room hotel, and a waterpark, all of which are said to be launched by 2025. However, despite the issuance of the license confirmed by Rota senator Paul Manglona, officials from the Department of Public Lands (DPL) have indicated that the resort property is still subject to an ongoing request-for-proposals (RFP) process. The RFP, which opened in August and was extended to November 10, has seen IH Group actively submit a proposal, yet questions linger about the legitimacy of its claims regarding the land.
The Controversial State of Rota Resort
The Rota Resort and Country Club has been in a state of neglect since its abrupt closure in July 2022, which occurred without the required notification to NMI authorities. In 2023, the DPL took the significant step of terminating the land lease, citing that Rota Resorts LLC, the previous operator, had essentially abandoned the property. The previous owner, Hee Kyun Cho, contested the lease termination, arguing that pandemic-related challenges were the primary cause for the closure and subsequent financial issues. However, the appeals process did not favor Cho, as the DPL maintained that the resort was left in disarray, posing potential public health risks due to its deteriorating state.
A History of Casino Misadventures
The challenges facing IH Group’s proposal are compounded by the CNMI’s troubled past with casino gaming. The region’s initial foray into the gambling industry, through Imperial Pacific International’s proposed Saipan resort, turned disastrous, resulting in financial turmoil and bankruptcy. The ambitious Imperial Pacific Palace project has yet to reach completion, with overwhelming debts stacking up against it. In this context, concerns about IH Group’s financial integrity and project viability are heightened, as they aim to avoid a similar pitfall.
Moving Forward: Dreams and Aspirations
Despite the setbacks of the past, IH Group remains optimistic. According to Kim, the group once considered investing $150 million to revitalize the unfinished Saipan IR project, but now seeks to turn the page and focus solely on the proposed development on Rota. Their mission is grandiose, with promises to create a resort that mirrors the luxurious experiences of Las Vegas and Macau.
The IH Group’s marketing claims on their website evoke a sense of wonder, stating that the new "CASINO RESORT HOTEL" will become a paradise where visitors can realize unforgettable dreams. This ambitious vision may capture the imagination of many, but the reality on the ground is filled with hurdles that must be navigated before any tangible results materialize.
Conclusion: A Watchful Eye on the Future
The situation on Rota is evolving, yet remains enigmatic. As the investigation into the previous operators’ actions continues and the RFP process plays out, local residents, officials, and potential investors will be closely monitoring the actions of both IH Group and the CNMI government. The renewed hope for Rota’s tourism economy hinges on whether IH Group can transform their vision into reality, while ensuring compliance with legal and regulatory frameworks. Only time will tell if this initiative heralds a new dawn for Rota or if it will join the growing list of dreams deferred in the Northern Mariana Islands.
