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 September 2012 at the company’s VIP rooms in Macau was US$1.249 billion, down 34.8% year-over-year, compared to US$1.916 billion for the month of September 2011. This compares with a year-over-year increase in overall gross gaming revenue for Macau of 12.3% for September 2012. Win rate for the month of September 2012 was 3.39%.
For the first nine months of 2012, AERL’s Rolling Chip Turnover was US$14.097 billion (an average of $1.566 billion per month), down 1.8% year-over-year, compared to US$14.357 billion (an average of $1.595 billion per month) for the first nine months of 2011. Overall, Macau gross gaming revenue increased 14.9% for the first nine months of 2012, while Macau VIP revenue growth for the month of September 2012 is believed to be negative versus the same period in 2011.
The decline in Rolling Chip Turnover was attributable to the Company’s self-directed tightening of credit to agents due to the slowing economy in China and the slowdown of business in the last two weeks of September 2012 before the Golden Week holiday, partially offset by a higher-than-average win rate as all AERL VIP rooms are now on a revenue sharing model.
“Our September 2012 results were affected by 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 and led to disappointing results,” said AERL Chairman Lam. “We believe the acquisition of our new VIP room at City of Dreams, hopefully with further policy easing by the Chinese government, will lead to higher Rolling Chip Turnover during the rest of the year.”