AERL announces deal to acquire VIP room operation in the Venetian Macau

VIP gaming promoter Asia Entertainment & Resources Ltd. (AERL) announced that it has entered into a non-binding memorandum of understanding to acquire a 100 percent profit interest in the operations of King’s Gaming Promotion Limited (KGP). KGP is a Macau-based VIP room gaming promoter that currently operates one room with five tables at the Venetian Macau. AERL expects to close the transaction by November 30, 2010. "KGP has been successful in maintaining an average rolling chip turnover of approximately HK$1 billion (approximately US$129 million) per month over the past six months”, said AERL Chairman Lam. “We believe by combining our operations and network of agents with that of King’s Gaming, we can expand our presence in the Macau VIP gaming market into the Cotai Strip." AERL’s existing VIP gaming rooms are all located in Macau Peninsula, namely at the StarWorld and MGM Macau. The value of the deal is expected to be approximately US$9 million, but it can increase according to KGP’s results.