Iao Kun Group Holding Company Limited Announces Closure of VIP Gaming Rooms at Galaxy Macau and StarWorld
Expects to Generate Total Annual Savings of US$4.0 Million
HONG KONG–(BUSINESS WIRE)–Iao Kun Group Holding Company Limited (“IKGH”) (NASDAQ:IKGH), which
operates through its subsidiaries and related promotion entities that
act as VIP room gaming promoters and a collaborator, today announced
that as part of its comprehensive strategic review of its VIP gaming
room operations in Macau, it has closed its VIP gaming rooms at the
Galaxy Macau and StarWorld, effective September 10, and terminated its
agreements with Sang Heng and Sang Lung Gaming Promotion Ltd. relating
to those facilities.
IKGH believes the closure of both facilities will generate total annual
savings of approximately US$4.0 million. The strategic review of IKGH’s
operations in Macau remains ongoing, and IKGH anticipates taking
additional action to reduce its operating expenses and preserve its
capital position in due course.
Forward-Looking Statements
This press release includes forward-looking statements made pursuant to
the safe harbor provisions of the Private Securities Litigation Reform
Act of 1995 that involve risks and uncertainties. Forward-looking
statements are statements that are not historical facts. Such
forward-looking statements, based upon the current beliefs and
expectations of IKGH’s management, are subject to risks and
uncertainties, which could cause actual results to differ from the
forward-looking statements. The gaming industry is characterized by an
element of chance. Theoretical win rates for IKGH’s promotion entities’
VIP gaming room operations depend on a variety of factors, some beyond
their control. In addition to the element of chance, theoretical win
rates are also affected by other factors, including gaming patrons’
skill and experience, the mix of games played, the financial resources
of gaming patrons, the spread of table limits, the volume of bets placed
by IKGH’s promotion entities’ gaming patrons and the amount of time
gaming patrons spend on gambling — thus VIP gaming rooms’ actual win
rates may differ greatly over short time periods, such as from quarter
to quarter, and could cause their quarterly results to be volatile.
These factors, alone or in combination, have the potential to negatively
impact the VIP gaming rooms’ win rates. Investors and potential
investors should consult all of the information set forth herein and
should also refer to the risk factors set forth in IKGH’s Annual Report
on Form 20-F filed in March 2016, and other reports filed or to be filed
from time-to-time with the Securities and Exchange Commission.
About Iao Kun Group Holding Company Limited
IKGH is a holding company which operates through its subsidiaries and
related promotion entities that act as VIP room gaming promoters and a
collaborator, and is entitled to receive all of the profits of the VIP
gaming promoters and a collaborator from VIP gaming rooms. IKGH’s VIP
room gaming promoters and collaborator currently participate in the
promotion of major luxury VIP gaming facilities in Macau, China, the
largest gaming market in the world. VIP gaming rooms are located at the
City of Dreams Macau in Cotai and Le Royal Arc Casino, located in
NAPE, Downtown Macau. IKGH started trial operations to the Australian
casinos (Crown Perth Casino in Perth, Australia and the Crown Melbourne
Casino in Melbourne, Australia) to gain a greater understanding of the
preferences of its junket agents and VIP players and the logistics of
the market.
Contacts
Iao Kun Group Holding Company Limited
Ryan Yip, +853 2782 3425
ryany@ikghcl.com
or
James
Preissler, 646-450-8808
preissj@ikghcl.com
