Iao Kun’s VIP chip roll slumps 72 pct in July
Iao Kun Group Holding Co Ltd – an investor in VIP gambling junkets in Macau and Australia – announced that its unaudited rolling chip turnover in Macau for July decreased by 72 percent in year-on-year terms, to US$0.44 billion.
The win rate for the month was 4.52 percent, the Nasdaq-listed firm added.
Market-wide in Macau, July rolling chip turnover was down by 51.1 percent, excluding direct VIP, according to unofficial industry returns compiled by Deutsche Bank Securities Inc. Direct VIP is a reference to VIP players directly managed by the house, rather than brought in by junkets.
The Macau government on Monday announced that citywide in July, gross gaming revenue – another measure of casino industry performance – for Macau VIP play and mass gambling combined, had fallen by 34.5 percent year-on-year.
For the first seven months of 2015, Iao Kun’s unaudited rolling chip turnover fell 61 percent compared to the year-earlier period to US$4.36 billion. The figure represented a monthly average of US$0.62 billion for the period between January and July.
The firm didn’t give a commentary on the reasons for the deterioration. But in June, Iao Kun had cited “a decreasing trend of VIP baccarat, consistent with the overall decline of gaming revenue in Macau” and “the economic downturn and the ongoing anti-corruption campaign in mainland China”, as reasons for its 48-percent year-on-year revenue decline in the first quarter of 2015.
Iao Kun’s business partners promote five high-roller facilities in Macau casinos.
On May 15, Iao Kun announced the completion of a deal allowing the firm to expand its casino junket operations to Crown Perth Casino and to Crown Melbourne Casino. The two Australian properties are operated by Crown Resorts Ltd, a firm chaired by Macau casino investor James Packer.
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