Iao Kun rolling chip turnover plummets 71 per cent in April

The rolling chip turnover of junket operator Iao Kun is in freefall, decreasing 71 per cent year-on-year in April to US$0.5 billion (MOP4 billion) from US$1.7 billion (MOP13.6 billion) the company announced late Tuesday night. The win rate stood at 3.48 per cent during April 2015.
In Macau, there are two remuneration methods for junkets. One is based on an agreed percentage of the rolling chip turnover. The other is where junkets take an agreed percentage of the win in the VIP gaming rooms, but are also required to pay for the same percentage of losses.
Concerning the first four months of the year, Iao Kun Group Holdings’ rolling chip turnover amounted to US$2.70 billion (MOP21.6 billion), a decrease of 58 per cent year-on-year from US$6.49 billion (MOP51.8 billion). This means that while in 2014 in the first four months Iao Kun was generating a rolling chip turnover of US$1.62 billion (MOP12.9 billion) per month, this year that value went down to US$0.68 billion (MOP5.4 billion) per month.
The junket promoter, listed on NASDAQ, is mirroring the general trend of the gaming industry in Macau. In the first four months of the year, gaming revenues nosedived 37.1 per cent year-on-year from MOP133.5 billion (US$16.7 billion) to MOP83.4 billion (US$10.5 billion).
Iao Kun currently has five major VIP gaming rooms in Macau placed in StarWorld Hotel, Galaxy Macau, Sands Cotai Central, City of Dreams and Le Royal Arc Casino. The gaming promoter operates rooms in properties controlled by Galaxy Entertainment Group, Sands China and SJM.
J.S.F.