Macau-primarily based VIP gambling space promoter Iao Kun Group Holding Co Ltd has announced that it is undertaking a strategic evaluation of its gaming area operations in light of Macau's struggling VIP gaming section.
In a statement Lam Guy Pou, chairman of Iao Kun, mentioned
Given the lack of recovery in the VIP industry in Macau and our expectations that this will proceed for the foreseeable long term, we are at present reviewing our all round operations in Macau in order to make sure their sustainability.
Lam additional that the business will be taking essential actions to make sure capital preservation and improvement of its earnings per share.
The business announced that it had closed its VIP gaming area at Sands Cotai from August 31 in purchase to minimize charges. It has also ceased its partnership with King's Gaming Promotion Ltd for operations associated to the VIP rooms, citing that the present rolling chip turnover volume did not warrant the operation of five gaming rooms. The company said that closure of the gaming rooms could consequence in financial savings of up to US$750,000.
The business has indicated that it may close a single or two far more rooms soon after the review in purchase to increase its working. It will be nevertheless carry on supporting the operations for 4 other VIP gaming amenities inside Macau casinos which are at the Galaxy Macau, StarWorld, Le Royal Arc and City of Dreams Macau.
Iao Kun has registered a rolling chip turnover of $2.thirty billion in the initial seven months of this year, which is a decline of 47 percent yr-on- year. For the very same period in 2015, the company reported $four.36 billion as typical roll.
The VIP segment has been severely hit by the downturn in Macau's casino business brought on by the anti-corruption crackdown and so far there has been really little sign of improvement. Brokerage company Union Gaming Securities Asia Ltd has said that the real VIP revenue was worse than what was getting reported by Macau's regulator, the Gaming Inspection and Coordination Bureau (DICJ).
Handicapping the Conference Tourneys Iao Kun stated earlier this 12 months it was intending to obtain a casino in South Korea, which is the Jeju Sun Hotel and Casino situated on the Jeju Island and has also initiated trial operations in two Australian casinos as it seeks to build its presence outside of Macau.
