Hong Kong-headquartered promoter of VIP rooms across Macau Iao Kun Group Holding Company Limited (IKGH) announced earlier today that it had signed a non-binding agreement with Lou Kan Kuong, under which the latter is to act as a junket operator for both Crown Perth Casino and Crown Melbourne Casino. Furthermore, the company is to acquire Mr. Kuong’s profit interests.
Currently, he is an officer at the junket promoter. Mr. Kuong agreed on acting as a junket operator for the above-mentioned Australian gambling venues not long ago.
The transaction in question is expected to be finalized by the middle of May. Revenues are expected to begin generating shortly after its completion. IKGH pointed out the interests will be acquired for nominal value.
Man Pou Lam, Chairman and Chief Marketing Officer of IKGH, pointed out that he considers this move a major step towards the company’s expansion on international markets. Furthermore, he explained that diversifying their sources of revenue is among their top priorities.
The IKGH Chairman also said they are pleased to be given the opportunity to establish themselves on the Australian gambling market and to introduce both Crown Perth Casino and Crown Melbourne Casino to their VIP customers.
Mr. Lam promised that IKGH will keep on looking for opportunities to expand its operations in other foreign countries as well, which is expected to eventually result in long-term value for the company’s shareholders.
IKGH operates via its subsidiaries, which are known to be acting as promoters of VIP gaming rooms across Macau. The profits generated by those companies are subsequently received by their parent company.
Currently, IKGH and its subsidiaries promote a total of five gaming rooms intended for VIP players on the territory of Macau. One of those is located on the premises of StarWorld Hotel in downtown Macau, another one is part of Galaxy Macau™ Resort on the Cotai Strip. Both rooms are managed by Galaxy Casino, S.A.
There are two more rooms on the Cotai Strip – located at Sands Cotai Central and City of Dreams Macau. The last one is part of Casino Le Royal Arc in the central part of the city.
Earlier this month, IKGH announced its financial results for the fourth quarter of 2014 as well as for the whole year. The company posted a 4% revenue increase to $52.3 million for the three-month period ended December 31, 2014. Full-year revenue amounted to $234 million, compared to $237 million generated in 2013.
