Asia Entertainment & Resources Ltd. Announces Rolling Chip Turnover of
US$1.47 Billion for October 2012
HONG KONG -- November 02, 2012
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 October 2012 at the company’s VIP rooms in Macau was US$1.47
billion, down 31% year-over-year, compared to US$2.11 billion for the month of
October 2011. This compares with a year-over-year increase in overall gross
gaming revenue for Macau of 3% for October 2012, while Macau VIP revenue
growth for the month of October 2012 is believed to be negative versus the
same period in 2011. Win rate for the month of October 2012 was 4.25%. At a
normalized win rate between 2.85 and 3.00%, AERL’s Rolling Chip Turnover for
October 2012 could have been between US$2.19 billion and US$2.08 billion.
For the first ten months of 2012, AERL’s Rolling Chip Turnover was US$15.57
billion (an average of $1.56 billion per month), down 5.5% year-over-year,
compared to US$16.47 billion (an average of $1.65 billion per month) for the
first ten months of 2011. Overall, Macau gross gaming revenue increased 13.5%
for the first ten months of 2012.
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, partially offset by a higher-than-average win rate as all AERL VIP
rooms are now on a revenue sharing model.
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
As of September 1, 2012, all AERL VIP rooms are on a revenue sharing
Definition of Rolling Chip Turnover
Rolling Chip Turnover is used by casinos to measure the volume of VIP business
transacted and represents the aggregate amount of bets players make. Bets are
wagered with "non-negotiable chips” and winning bets are paid out by casinos
in so-called "cash” chips. "Non-negotiable chips” are specifically designed
for VIP players to allow casinos to calculate the commission payable to VIP
room gaming promoters. Commissions are paid based on the total amount of
"non-negotiable chips” purchased by each player. VIP room gaming promoters
therefore require the players to "roll,” from time to time, their "cash chips”
into "non-negotiable” chips for further betting so that they may receive their
commissions (hence the term "Rolling Chip Turnover”). Through the promoters,
"non-negotiable chips” can be converted back into cash at any time. Betting
using rolling chips, as opposed to using cash chips, is also used by the DICJ
to distinguish between VIP table revenue and mass market table revenue.
About Asia Entertainment & Resources Ltd.
AERL, formerly known as CS China Acquisition Corp., acquired Asia Gaming &
Resort Limited ("AGRL") on February 2, 2010. AERL is an investment holding
company which operates through its subsidiaries and related promoter companies
as a VIP room gaming promoter, and is entitled to receive all of the profits
of the VIP gaming promoters from VIP gaming rooms. AERL's VIP room gaming
promoters currently participate in the promotion of four major luxury VIP
gaming facilities in Macau, China, the largest gaming market in the world. One
VIP gaming room is located at the top-tier 5-star hotel, the Star World Hotel
& Casino in downtown Macau, and another is located in the luxury 5-star hotel,
the Galaxy Macau™ Resort in Cotai, each of which is operated by Galaxy Casino,
S.A. Additional VIP gaming rooms are located at the Venetian
Macao-Resort-Hotel and City of Dreams Macau, both in Cotai.
Forward Looking Statements
This press release includes forward-looking statements made pursuant to the
safe harbor provisions of the Private Securities Litigation Reform Act of 1995
that involve risks and uncertainties. Forward looking statements are
statements that are not historical facts. Such forward-looking statements,
based upon the current beliefs and expectations of AERL's management, are
subject to risks and uncertainties, which could cause actual results to differ
from the forward looking statements.
Asia Entertainment & Resources Ltd.
James Preissler, 646-450-8808
William Schmitt, 203-682-8294
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