Asia Entertainment & Resources Ltd. Announces Rolling Chip Turnover Of US$1.50 Billion For July 2013
Asia Entertainment & Resources Ltd. (“AERL”) (NASDAQ: AERL), which operates through its subsidiaries and related promoter companies that act as VIP room gaming promoters, today announced unaudited Rolling Chip Turnover (as defined below) for the month of July 2013 at the company’s VIP rooms in Macau was US$1.50 billion, up 15% year-over-year, compared to US$1.31 billion for the month of July 2012. This compares with a year-over-year increase in overall gross gaming revenue for Macau of 20% for July 2013. Win rate for the month of July 2013 was 3.00%.
For the first seven months of 2013, AERL’s Rolling Chip Turnover was US$10.04 billion (an average of $1.43 billion per month), down 12% year-over-year, compared to US$11.38 billion (an average of $1.63 billion per month) for the first seven months of 2012. Macau gross gaming revenue increased 16% for the first seven months of 2013.
The increase in Rolling Chip Turnover was primarily attributable to the completion in June 2013 of the acquisition of 100% of the profit interest in the operations of the VIP gaming room at Level 1 of Le Royal Arc Casino, as well as an improved chip turnover in AERL’s other four VIP rooms.
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 greater volatility.
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