Elray Gaming Announces That it Has Entered Into a Binding LOI With One of
Asia's Most Experienced Gaming Operators
NEW YORK, May 5, 2014 (GLOBE NEWSWIRE) -- Elray Resources Inc. (OTCBB:ELRA)
announced today that it has entered into a Letter of Intent to form a Joint
Venture with one of Asia's most experienced Junket Operators, Mr. Qi Xiaolong
The JV will result in Elray holding a profit share agreement with VIP Rooms in
Macau, under which Elray will receive an up to 48% share of profits generated
by the Licensed Casino Operations. Mr. Qi and his team currently participates
in the revenue streams of many major luxury VIP gaming facilities in Macau,
China the largest and most lucrative gaming market in the world.
VIP gaming operations in Macau consist of VIP rooms that cater exclusively to
high-limit Baccarat table games. Gaming Promoters in Macau have historically
maintained the majority of VIP customer relationships. The Promoters secure
VIP rooms through agreements in which they receive either a commission on
turnover or a percentage of the casino net gaming win or loss on a pre-gaming
Mr. Qi will appoint an executive director to the board of Elray with Brian
Goodman remaining as Chief Executive.
Upon signing the agreement, Mr. Qi commented, "I am excited to be part of this
new venture which will enable us to capitalize on the largest gaming market in
the world and the benefits provided by Elray and its experienced management
team will enable me to exponentially grow my existing gaming business and
raise the additional capital to make acquisitions and open multiple licensed
VIP rooms in Macau."
Brian Goodman, CEO stated that, "Elray has been working hard to participate in
this lucrative and rapidly growing market and whilst it has had some interim
setbacks it will now be free to enter this lucrative arena. It has been a
steep learning curve but Elray is well positioned to add value to Mr. Qi's
existing gaming business. The Macau opportunity together with the US listing
will enable the company to raise growth capital, acquire other gaming
promoters in Macau as well as in other jurisdictions and create a profitable
company, creating enormous institutional worth, whilst aggressively increasing
the brand value on a global scale returning excellent returns for
shareholders, overall an excellent result for Elray shareholders." "This
partnership will result in immediate revenues for Elray."
Mr. Qi Xiaolong and Associates
Mr. Qi's and his team have over 20 years of gaming experience and have a large
network of successful agents throughout China. Mr. Qi has a valuable Network
of High Wealth Players that will continue to support this business and the new
VIP Gaming Rooms that will be opened. Mr. Qi is an educated Chinese Citizen
and his team of professional gaming operators will be leading the future
development and growth of Elray within Asia.
Macau is part of the territory of the People's Republic of China.
Macau is one of the most rapidly growing economies in Asia and is the only
territory within China where casino operations has been legalized.
Macau's gaming industry is already 7 times that of Las Vegas.
Analysts at Nomura, forecasted in a recent report that gambling revenue could
nearly double to $80 billion by 2018. This helps explain why operators like
Wynn, Sands and SJM are prepared to plow billions of dollars into more
expansion despite the fact that taxes on gambling revenue in Macau are far
above those in Nevada.
Gaming revenue from the six operators of China's only legal casinos rose 18.6
percent to $45.2 billion USD last year that compares with the average estimate
of a 18 percent growth from five analysts compiled by Bloomberg News. The
Macau gaming industry has grown at an average of 37.5% per annum over the last
5 years. (2007 to 2011, source: Macau Statistics and Census Bureau)
Casino Hotels in Macau, have occupancy rates of more than 90 percent. And
statistics released on March 3 showed that gambling revenues to operators in
February had jumped 40 percent from a year earlier, to a record $4.8 billion.
The forest of cranes on the Cotai Strip is also testimony to the casino
operators' faith that Beijing, is content to let gambling thrive in Macau,
which is a special administrative region of China with its own regulations and
where casino like gambling is allowed, unlike on the mainland.
In an anchor report, Nomura Securities cited two main reasons why they are
bullish on Macau. First, the market is still very under-penetrated. Many
Chinese from mainland China have not paid their visit to Macau yet. Second, in
an under-penetrated market, supply drives growth. As more casinos become
available in Macau, the pie will expand with a multiple effect.
Elray is an established Gaming entity which owns and licenses Gaming
Intellectual Property, Gaming Domains, Trademarks and Player Databases. Whilst
Elray is a US company, we have a global presence with offices in London, South
Africa, Sydney and Curacao, homes of the largest gaming operators, which helps
us actively manage and serve our clients. Our sophisticated patented software
automatically declines any gaming requests from within the United States, in
strict compliance with current US law. Our Sydney office allows us to tap into
skilled resources and some of the world's largest client base, for regular,
personal interaction. As our active operations are in a jurisdiction that is
friendly to online gaming, our clients can rest assured that we are here to
This press release may contain "forward-looking statements" within the meaning
of the Private Securities Litigation Reform Act of 1995, such as statements
relating to financial results and plans for future development activities, and
are thus prospective. Forward-looking statements include all statements that
are not statements of historical fact regarding intent, belief or current
expectations of the Company, its directors or its officers. Investors are
cautioned that any such forward-looking statements are not guarantees of
future performance and involve risks and uncertainties, many of which are
beyond the Company's ability to control. Actual results may differ materially
from those projected in the forward-looking statements. Among the factors that
could cause actual results to differ materially from those indicated in the
forward-looking statements are risks and uncertainties associated with the
Company's business and finances in general, including the ability to continue
and manage its growth, competition, global economic conditions and other
factors discussed in detail in the Company's periodic filings with the
Security and Exchange Commission. The Company undertakes no obligation to
update any forward-looking statements.
CONTACT: Melissa Diaz,
South Street Media, Inc
Phone: (917) 937-8968
Elray Gaming logo
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