Asia Entertainment & Resources Ltd. Announces Rolling Chip Turnover of
US$1.29 Billion for February 2013
HONG KONG -- March 4, 2013
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 February 2013 at the company’s VIP rooms in Macau was US$1.29
billion, down 32% year-over-year, compared to US$1.91 billion for the month of
February 2012. This compares with a year-over-year increase in overall gross
gaming revenue for Macau of 12% for February 2013. Win rate for the month of
February 2013 was 3.54%.
For the first two months of 2013, AERL’s Rolling Chip Turnover was US$2.55
billion (an average of $1.28 billion per month), down 29% year-over-year,
compared to US$3.62 billion (an average of $1.81 billion per month) for the
first two months of 2012. Macau gross gaming revenue increased 9% for the
first two months of 2013. Win rate for the first two months of 2013 was 3.89%.
The decline in Rolling Chip Turnover was attributable to the Company’s
self-directed tightening of credit to agents due to its conservative view on
the Chinese economy.
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 is a 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 Sands Cotai
Central 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.
William Schmitt, ICR
Press spacebar to pause and continue. Press esc to stop.