The effort to create a larger casino resort industry in the Northern Marianas took another step forward recently. Neo Gold Wings Paradise, of South Korea, has arrived at a provisional lease agreement with the government to obtain 300 hectares of public land for its planned casino resort.

The lease would be good for 25 years and give the potential for an extension for another 15. The agreement still needs approval of the legislature.

The $200 million project received its casino license in September. Besides a casino, the project includes a 1,000-room hotel, an indoor ice skating rink and a theme park.

The Northern Marianas has one casino currently in operation on Tinian. Licenses have been granted to two other developers, and one more license is available under the current legislation.

One developer holding a license, Bridge Investment Group, had planned to invest $200 million as well, but scaled back its project to $60 million earlier this year. The Tinian Oceanview Resort and Condominiums includes a casino, a hotel with 310 rooms, 268 condos, plus a spa, restaurant and chapel.

The other license holder, Marianas Resort Development Corp., is also a Korean company but is based on Guam. Its project calls for an investment of $300 million for the Matua Bay Resort. Besides a casino, Matua Bay will feature a hotel with 1,000 rooms and a golf course.

Building the projects is one thing. Getting a suitable return on them is another.

The Tinian Dynasty Hotel & Casino, the one existing property on the island, has a 75,000-square-foot casino and the only five-star hotel in the Northern Marianas. However, in 10 years of operation, it has not yet recouped its investment.

Part of the problem is the lack of an airfield capable of handling large passenger jets. Visitors from China and other Asian countries, which is the region’s largest market for tourism, must first fly to Saipan, then take a shuttle flight to Tinian.

On the positive side, there is the rejection by voters of casino gaming on Guam last month. Only a half-hour flight away, Guam is also expecting a large U.S. military buildup as forces begin to redeploy permanently from Okinawa.

By GGB Staff

Staff writers for Global Gaming Business magazine. Las Vegas, Nevada.