VIP gaming promoter Iao Kun Group Holding Company Ltd on Wednesday announced it has closed its VIP gaming rooms at the Galaxy Macau and StarWorld, effective September 10.
The company has terminated its agreements with Sang Heng and Sang Lung Gaming Promotion Ltd. relating to those facilities.
In a press release from the junket sent on Wednesday, IKGH says the closures were part of its comprehensive strategic review of its VIP gaming room operations in Macau, and believes the closure of both facilities will generate total annual savings of approximately $4 million.
“The strategic review of IKGH’s operations in Macau remains ongoing, and IKGH anticipates taking additional action to reduce its operating expenses and preserve its capital position in due course,” the company said in a press release.
Earlier this month, IKGH announced it had closed its VIP gaming room at Sands Cotai Central Casino in Macau, effective from the end of August.
In a press release, the company said it was “undertaking a comprehensive strategic review of its VIP gaming room operations in Macau due to the ongoing challenging VIP gaming environment and to enhance its operating performance.”
The company at the time also said it is also looking at potentially closing another 1-2 VIP gaming rooms to optimize earnings.
“Given the lack of recovery in the VIP market in Macau and our expectations that this will continue for the foreseeable future, we are currently reviewing our overall operations in Macau in order to ensure their sustainability,” said Lam Man Pou, chairman of IKGH. “We expect to take further prudent actions that we believe will be accretive to our earnings per share and to ensure the preservation of our capital as we continue to seek to generate long-term value for our shareholders.”