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Iao Kun rolling chip turnover down 60 percent in June

Iao Kun Group Holding announced rolling chip turnover of $0.54 billion in June at the company’s VIP rooms in Macau, down 60 percent from the same month a year ago, when it pulled in $1.35 billion.

For the first six months of 2015, IKGH’s Rolling Chip Turnover was $3.92 billion, down 58 percent year-over-year compared to $9.43 billion in the first six months of 2014.

The company’s VIP rooms are primarily focused on high stakes baccarat. Baccarat accounts for approximately 88 percent of total Macau casino winnings according to the Macau Gaming Inspection and Coordination Bureau. 

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. 

As of September 1, 2012, all IKGH VIP rooms are on a revenue sharing remuneration model.


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