Iao Kun closes VIP room, says Jeju Sun accord lapses

Iao Kun Group Holding said it has closed its VIP gaming room at Le Royal Arc Casino as part of a strategic review of its activities in Macau.

The company also said that an accord to buy the Jeju Sun Hotel & Casino in South Korea from Bloomberry Resorts has expired.

Iao Kun said the latest closure will save it about $750,000 in annual costs. Earlier in September, the company announced it was also closing rooms at the Galaxy Macau and StarWorld casinos in an effort to generate annual savings of about $4 million.

“IKGH has been focusing its efforts in this month on the collection of its outstanding markers receivable and expects to continue those efforts in the near-term to pay down its line of credit owed to the license operators,” it said in a statement on Friday.

“Consequently, and because of the lengthening and difficulty of collecting markers receivable, the company will not be actively extending credit to its clients during this period and therefore it expects business volume to be minimal.”

The stock fell to a record low in Friday trading on Nasdaq to $0.28, putting it far short of Nasdaq’s minimum bid requirement of $1.00.

IKGH’s VIP room gaming promoters now only have one room at the City of Dreams Macau in Cotai. Through its subsidiaries, it also acts as junket operator for Australian casinos, Crown Perth Casino in Perth, Australia and the Crown Melbourne Casino in Melbourne, Australia. It has also been seeking to expand to additional overseas markets.