Junket operator Iao Kun Group Holding Company Ltd has 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.”
IKGH said it had terminated its agreement with King’s Gaming Promotion Ltd., whom it works with for its Sands casino VIP rooms, “as the current Rolling Chip Turnover volume does not warrant the operation of five VIP gaming rooms.”
“IKGH believes the closure of the facility will generate annual overall savings of approximately $750,000,” it added.
The company 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.”