LiNiu Technology Group, formerly known as Iao Kun Group Holding Company Ltd. reported a net loss of $215 million in the full-year 2016, compared to net income of $5.1 million in 2015.
The junket operator turned agricultural trading platform operator said rolling chip turnover from its gaming business generated $2.4 billion in 2016, down 62 percent from $6.4 billion in 2015.
Revenue was $32.4 million in 2016, a 69 percent decrease from 2015.
The company said this was primarily due to lower Rolling Chip Turnover, and no Rolling Chip Turnover in the fourth quarter, as well as (i) low win rate for 2016; (ii) lower demand due to the ongoing anti-corruption campaign in mainland China; (iii) the Company continuing to tighten gaming credit as a result of lengthened collection period on certain markets; (iv) the DICJ banning proxy betting and (v) the closure of four of the Company’s five VIP rooms during 2016 to streamline expenses.
During 2016, the company recognized $100.4 million in bad debt and a $97.3 million impairment of intangible assets.
It closed four VIP gaming rooms in 2016, including the Sands Cotai Central Casino, Galaxy Macau, StarWorld and Le Royal Arc in Macau “as the current Rolling Chip Turnover volume did not warrant the operation of any VIP gaming rooms,” noted the company in its latest filing.
It continues to run a VIP gaming operation at the Altira Complex.
Last month, LiNiu Technology Group launched the LiNiu Network, an electronic B2C, C2C and O2O trading platform focused on the Chinese agricultural industry. Since its launch, the site has seen traffic of over 50,000 visitors on a daily basis, with more than 130,000 users, more than 20,000 suppliers registered and over 80,000 products currently sold through the platform. The LiNiu Network generates revenue through commissions, advertising, management fees and guarantee deposits.