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Iao Kun Group announces October rolling chip turnover for Macau VIP rooms4 November 2015(PRESS RELEASE) -- Iao Kun Group Holding Company Limited, which operates through its subsidiaries and related promotion entities that act as VIP room gaming promoters and a collaborator, today announced unaudited Rolling Chip Turnover (as defined below) for the month of October 2015 at the company’s VIP rooms in Macau was US$0.47 billion, down 57% year-over-year, compared to US$1.10 billion for the month of October 2014. Win rate for the month of October 2015 was 3.21%. For the first ten months of 2015, IKGH’s Rolling Chip Turnover was US$5.67 billion (an average of $0.57 billion per month), down 62% year-over-year, compared to US$14.87 billion (an average of $1.49 billion per month) for the first ten months of 2014. The Company’s VIP rooms are primarily focused on high stakes baccarat. Baccarat accounts for approximately 88% of total Macau casino winnings according to the Macau Gaming Inspection and Coordination Bureau (DICJ). In Macau, two remuneration methods are used to compensate VIP room gaming promoters. On a fixed commission basis, VIP room gaming promoter revenues are based on an agreed percentage of Rolling Chip Turnover. On a win/loss split basis, the VIP room gaming promoter receives an agreed percentage of the “win” in the VIP gaming room (plus certain incentive allowances), and is required to also bear the same percentage of losses that might be incurred. Compared to the fixed commission basis, the win/loss split basis subjects the VIP room gaming promoter to the risk of losses from the gaming patron’s activity and to greater volatility. As of September 1, 2012, all IKGH VIP rooms are on a revenue sharing remuneration model. |