Asia Entertainment & Resources Ltd. (“AERL”) (NASDAQ: AERL), which operates through its subsidiaries and related promoter companies as a VIP room gaming promoter, today announced unaudited Rolling Chip Turnover (as defined below) for the month of July 2012 at the company’s three VIP rooms in Macau was US$1.310 billion, down 40.8% year-over-year, compared to US$2.212 billion for the month of July 2012. This compares with a year-over-year increase in overall gross gaming revenue for Macau of 1.5% for July 2012.
For the first seven months of 2012, AERL’s Rolling Chip Turnover was US$11.377 billion (an average of $1.625 billion per month), up 7.1% year-over-year, compared to US$10.618 billion (an average of $1.517 billion per month) for the first seven months of 2011. Overall, Macau gross gaming revenue increased 16.8% for the first seven months of 2012, while Macau VIP revenue growth for the month of July 2012 is believed to be negative versus the same period in 2011.
The decline in Rolling Chip Turnover was attributable to several factors including a one-time cash player that contributed almost US$200 million in RCT in July 2011, five full weekends in July 2011 versus July 2012, severe (typhoon and rainstorm) weather in Macau and Mainland China which affected visitations to our VIP rooms and the Company’s self-directed tightening of credit to agents due to the slowing economy in China.
“Our July 2012 results were affected by both external factors out of our control as well as our internal decision to tighten credit to agents, as the slowdown in growth in China has caused us to be more prudent in extending credit,” said AERL Chairman Lam. “Further policy easings by the Chinese government should allow AERL to return to normal credit policy in the near future, which would lead to higher Rolling Chip Turnover during the rest of the year.”