Liniu Technology Group - Ordina (NASDAQ:LINU)

HONG KONG, Dec 28, 2017 (BUSINESS WIRE) -- LiNiu Technology Group (f/k/a Iao Kun Group Holding Company Limited) (“LINU” or the “Company”) LINU, +35.34% which launched its electronic trading platform focused on the Chinese agricultural industry since April 2017 through Guangzhou LiNiu Network Technology Co., Ltd. (“LiNiu Network”), today announced unaudited financial results for the first half year ended June 30, 2017. All currency amounts are stated in United States dollars.

First Half 2017 Highlights

After the Company closed four VIP gaming rooms at the Sands Cotai Central Casino, Galaxy Macau, StarWorld and Le Royal Arc in Macau in 2016, the Company maintained minimal operations and temporarily relocated the Macau VIP gaming operation to Altira Complex, which provides remuneration at a predetermined fixed rate commission.
Net loss attributable to ordinary shareholders for the first half of 2017 was $5.7 million, or $0.48 net loss per share (basic and diluted), compared to net loss attributable to ordinary shareholders of $129.3 million, or $12.29 net loss per share (basic and diluted), for the six months ended June 30, 2016.
Non-GAAP loss attributable to ordinary shareholders, which is operating loss before amortization of intangible assets, was $5.7 million, or $0.48 per share (basic and diluted), for the six months ended June 30, 2017, as compared to non-GAAP loss of $24.0 million, or $2.27 per share (basic and diluted), for the six months ended June 30, 2016.
Business Developments in the First Half of 2017

In March 2017, the Company completed the acquisition of 51% of Jia-Heng Industrial Ltd., the holding company of LiNiu Network, an electronic B2C, C2C and O2O trading platform focused on the Chinese agricultural industry. The operational results of Jia-Heng and its subsidiaries, including LiNiu Network, have been consolidated in the financial statements of LINU since March 2017.
The Company launched the LiNiu Network, an electronic B2C, C2C and O2O trading platform focused on the Chinese agricultural industry in early April 2017. Since its launch, the site has more than 20,000 suppliers registered and over 100,000 products currently available through the platform. The LiNiu Network generates revenue through commissions.
“During the first half of 2017, we concentrated on launching the LiNiu Network and creating awareness for agricultural customers and suppliers to utilize our new platform,” said Mr. Wang Shun Yang, co-Chief Executive Officer of the Company. “As we move into 2018, we plan to further ramp up our efforts to drive customer awareness and traffic by establishing new relationships with larger online platforms. We also plan to work more closely with our partners at Shou Guang Agriculture Logistic Park (SGALP) and People’s Insurance Company of China Limited (PICC) to make progress in improving Chinese agriculture and generate increased commissions.”

First Half 2017 Results

First Quarter 2017 Financial Results

• Total Revenues was $1,410 vs. last years same quarter of $17,922,185
• Net loss attributable to ordinary shareholders for the first quarter of 2017 was $0.4 million, or $0.01 per share (basic and diluted), compared to net loss attributable to ordinary shareholders of $3.5 million, or $0.06 per share (basic and diluted), for the prior-year period.

“The first quarter was marked by the official transformation of the Company toward its new strategy of using technology to create solutions for the vast Chinese agricultural industry,” said Mr. Wang Shun Yang, co-Chief Executive Officer of LiNiu Technology Group. “Since launching the LiNiu Network last month, we have been seeing consistent traffic and believe the platform has been well received by both our customers and the suppliers. We have started to generate revenue from the site and plan to launch a marketing campaign to generate greater awareness of the LiNiu Network and our ability to more efficiently improve Chinese agriculture in the months ahead.”

HONG KONG--(BUSINESS WIRE)--

Iao Kun Group Holding Company Limited (“IKGH”) (IKGH), announced today that it has completed the acquisition of 51% of Jia-Heng Industrial Ltd., the holding company of Guangzhou LiNiu Network Technology Co. Ltd. (“LiNiu Network”), a software technology development company that is currently developing an electronic B2C, C2C and O2O trading platform focused on the Chinese agricultural industry.

Upon the closing of the acquisition, IKGH also announced several changes to management and the Board of Directors. Effective immediately, Mr. Lam Chou In, Chief Operating Officer of IKGH, has been promoted to co-Chief Executive Officer, responsible for the Macau gaming business. In addition, Mr. Wang Shun Yang has been appointed as co-CEO and as a director of the Board, and will be responsible for IKGH’s Chinese technology industry development. Finally, Mr. Fong Weng Nam has been appointed as IKGH’s new Chairman of the Board of Directors.

In connection with the closing, Mr. Lam Man Pou has resigned as Chairman and director of IKGH’s Board of Directors, and Mr. Vong Hon Kun has resigned as CEO and director of the Board. Both Mr. Lam and Mr. Vong will remain as Chief Marketing Officer and Chief Operating Officer of IKGH, respectively.

“We are pleased to complete the acquisition and are moving forward rapidly to launch our agriculturally focused e-commerce platform within the next few months,” said Mr. Wang. “At the same time, we want to thank Mr. Lam and Mr. Vong for their leadership of IKGH over the years and are gratified to have them remain with IKGH as a valuable resource as we embark on this new chapter.”

Mr. Wang is the founder of LiNiu Network and has been developing its agricultural electronic trading platform since 2013. Prior to founding LiNiu Network, he acted as Chief Consultant and led the industrial design, planning, investment and integration of the “Yunnan Agricultural Science and Technology Park”, which was jointly organized by the Ministry of Agriculture and Yunnan Province, to establish a systematic supply chain for the agricultural industry in the Park and the integration of industry and financial capital.

Mr. Fong is a businessman that has been engaged in investment, real estate development and Macau’s gaming business for over 20 years. Mr. Fong currently is the Member of Jinwan Committee of Zhuhai of Chinese People’s Political Consultative Conference; Vice President of Hong Kong and Macao and Taiwan Cultural Exchange Association; Vice President of Macao Chong San Seak Kei Friendship Association and Chief Supervisor of Macao Henan Association.

HONG KONG--(BUSINESS WIRE)--

Iao Kun Group Holding Company Limited (“IKGH”) (IKGH), which operates through its subsidiaries and related promotion entities that act as VIP room gaming promoters, today announced that as part of its comprehensive strategic review of its VIP gaming room operations in Macau, it has closed its VIP gaming room at Le Royal Arc Casino, effective September 29, and terminated its collaborator agreement with Mr. Lee Wai Man relating to the facility. IKGH believes the closure of the facility will generate additional annual overall savings of approximately US$750,000.

In addition, IKGH announced today that the purchase agreement for the proposed acquisition of Jeju Sun Hotel & Casino has lapsed.

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. 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.

HONG KONG--(BUSINESS WIRE)--

Iao Kun Group Holding Company Limited (“IKGH”) (IKGH), which operates through its subsidiaries and related promotion entities that act as VIP room gaming promoters and a collaborator, today announced that on September 13, 2016, it received a written notice (the “Notice”) from the Listing Qualifications department of The Nasdaq Stock Market (“Nasdaq”) indicating that IKGH is not in compliance with the minimum bid price requirement of $1.00 per share set forth in Nasdaq Listing Rule 5450(a)(1).

The Nasdaq Listing Rules require listed securities to maintain a minimum bid price of $1.00 per share and, based upon the closing bid price for the 30 consecutive business days ended September 12, 2016, IKGH did not meet this requirement. IKGH has been provided a 180 day period in which to regain compliance. If at any time during this period the closing bid price of IKGH’s common stock is at least $1.00 for a minimum of ten consecutive business days, IKGH will receive a written confirmation of compliance from Nasdaq and the matter will be closed.

In addition, following the initial 180 day period, IKGH may be eligible for an additional 180 day period to regain compliance, subject to IKGH effecting a reverse stock split during the second 180 day compliance period if necessary to cure the deficiency.

At present, IKGH will work to regain compliance during the initial 180 day compliance period and will actively monitor its performance with respect to the listing standards.

HONG KONG--(BUSINESS WIRE)--

Iao Kun Group Holding Company Limited (“IKGH”) (IKGH), which operates through its subsidiaries and related promotion entities that act as VIP room gaming promoters and a collaborator, today announced that as part of its comprehensive strategic review of its VIP gaming room operations in Macau, it has closed its VIP gaming rooms at the Galaxy Macau and StarWorld, effective September 10, and terminated its agreements with Sang Heng and Sang Lung Gaming Promotion Ltd. relating to those facilities.

IKGH believes the closure of both facilities will generate total annual savings of approximately US$4.0 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.

HONG KONG--(BUSINESS WIRE)--

Iao Kun Group Holding Company Limited (“IKGH”) (IKGH), which operates through its subsidiaries and related promotion entities that act as VIP room gaming promoters and a collaborator, today announced unaudited Rolling Chip Turnover (as defined below) for the month of August 2016 at the company’s VIP rooms in Macau was US$0.11 billion, down 75% year-over-year, compared to US$0.44 billion for the month of August 2015. Win rate for the month of August 2016 was 0.63%.

For the first eight months of 2016, IKGH’s Rolling Chip Turnover was US$2.41 billion (an average of $0.30 billion per month), down 50% year-over-year, compared to US$4.80 billion (an average of $0.60 billion per month) for the first eight months of 2015.

The Company’s VIP rooms are primarily focused on high stakes baccarat. Baccarat accounts for approximately 88% of total Macau casino winnings according to the Macau Gaming Inspection and Coordination Bureau (DICJ). In Macau, two remuneration methods are used to compensate VIP room gaming promoters. On a fixed commission basis, VIP room gaming promoter revenues are based on an agreed percentage of Rolling Chip Turnover. On a win/loss split basis, the VIP room gaming promoter receives an agreed percentage of the “win” in the VIP gaming room (plus certain incentive allowances), and is required to also bear the same percentage of losses that might be incurred. Compared to the fixed commission basis, the win/loss split basis subjects the VIP room gaming promoter to the risk of losses from the gaming patron’s activity and to greater volatility.

HONG KONG--(BUSINESS WIRE)--

Iao Kun Group Holding Company Limited (“IKGH”) (IKGH), which operates through its subsidiaries and related promotion entities that act as VIP room gaming promoters and a collaborator, today announced that it is 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.

As an initial cost-cutting measure, IKGH has closed its VIP gaming room at the Sands Cotai Central Casino in Macau, effective August 31, and terminated its agreement with King’s Gaming Promotion Ltd. relating to that facility, 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 US$750,000.

In addition, upon the completion of its strategic review, IKGH may further close an additional 1-2 VIP gaming rooms in order to further optimize its operating earnings. IKGH will provide details with respect to any additional expense reductions in due course.

“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 Mr. 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.”

HONG KONG--(BUSINESS WIRE)--

Iao Kun Group Holding Company Limited (“IKGH”)(IKGH), which operates through its subsidiaries and related promotion entities that act as VIP room gaming promoters and a collaborator, today announced unaudited Rolling Chip Turnover (as defined below) for the month of June 2016 at the company’s VIP rooms in Macau was US$0.23 billion, down 58% year-over-year, compared to US$0.54 billion for the month of June 2015. Win rate for the month of June 2016 was 3.24%.

For the first six months of 2016, IKGH’s Rolling Chip Turnover was US$2.06 billion (an average of $0.34 billion per month), down 47% year-over-year, compared to US$3.92 billion (an average of $0.65 billion per month) for the first six months of 2015.

The Company’s VIP rooms are primarily focused on high stakes baccarat. Baccarat accounts for approximately 88% of total Macau casino winnings according to the Macau Gaming Inspection and Coordination Bureau (DICJ). In Macau, two remuneration methods are used to compensate VIP room gaming promoters. On a fixed commission basis, VIP room gaming promoter revenues are based on an agreed percentage of Rolling Chip Turnover. On a win/loss split basis, the VIP room gaming promoter receives an agreed percentage of the “win” in the VIP gaming room (plus certain incentive allowances), and is required to also bear the same percentage of losses that might be incurred. Compared to the fixed commission basis, the win/loss split basis subjects the VIP room gaming promoter to the risk of losses from the gaming patron’s activity and to greater volatility.

HONG KONG--(BUSINESS WIRE)--

Iao Kun Group Holding Company Limited ("IKGH" or the "Company") (IKGH), which operates through its subsidiaries and related promotion entities that act as VIP room gaming promoters and a collaborator, previously announced that its Board of Directors had authorized a regular semi-annual dividend each year after the release of the Company’s financial results for the six months ending June 30, and, for each year after the release of the Company’s year-end financial results, an amount per outstanding ordinary share equal to (i) 15% of the Company’s non-GAAP net income for the most recently completed fiscal year less the amount paid pursuant to the six-month dividend (which was $0.014 per outstanding ordinary share for the six months ended June 30, 2015), divided by (ii) the number of ordinary shares outstanding on the record date for such dividend (the “Annual Dividend”).

The Company today announced the 2015 Annual Dividend will be $0.008 per ordinary share outstanding as of July 8, 2016 and that the payment date will be July 20, 2016.

HONG KONG--(BUSINESS WIRE)--

Iao Kun Group Holding Company Limited (“IKGH”) (IKGH), which operates through its subsidiaries and related promotion entities that act as VIP room gaming promoters and a collaborator, today provided additional details on its announced acquisition of the Jeju Sun Hotel & Casino in Jeju, Korea.

Consideration and Financing

The acquisition consideration includes the real property, on which the Jeju Hotel & Casino is situated, as well as a non-expiring gaming license, which allows for an unlimited number of gaming tables that may be installed, subject to regulatory approval. IKGH shall be the first Macau gaming operator to have a gaming license in Jeju, and ownership of the gaming license will be an additional valuable asset for IKGH as it can be transferred to other potential locations in Jeju.

IKGH expects to finalize its funding arrangements for the acquisition within the next few weeks. The company expects hotel and gaming operations to generate positive cash flow post-acquisition. Further, IKGH believes that the funding structure to be finalized should cause the acquisition to be accretive to earnings per share.

IKGH has consistently noted that it has been seeking to diversify its operations outside of Macau. After a comprehensive review of opportunities, the company focused its efforts on the rapidly expanding market of Jeju, Korea. Jeju provides excellent accessibility from the Chinese Mainland, with many daily flights from the major Chinese cities. In addition, all Mainland Chinese can travel to Jeju visa-free, making it an ideal destination for Chinese travelers and casino patrons. Jeju also has a low gaming tax rate compared to other jurisdictions (the gaming tax is paid net of junket commissions and other expenses and will be typically be below 15% of net gaming revenue).

In addition, IKGH sees significant potential to rapidly grow VIP operations on the island, given that VIP gaming in Jeju is currently underdeveloped. Upon reviewing potential opportunities, IKGH determined that the acquisition of the Jeju Sun Hotel & Casino and obtaining the non-expiring gaming license was the optimal way to diversify outside of Macau given the quality of the property and its close proximity (five-minute drive) to Jeju International Airport.

Hotel and Casino Management

In order to ensure a successful and value-added acquisition, it is imperative to have the proper teams in place to properly manage the property and casino and provide the customer with a first-class experience. In addition to the Jeju Sun Hotel management team that will continue to run the property as previously discussed, IKGH is currently negotiating and is confident that it will have a deeply experienced professional gaming team in place to manage the casino operation post-acquisition.

HONG KONG--(BUSINESS WIRE)--

Iao Kun Group Holding Company Limited (“IKGH”) (IKGH), which operates through its subsidiaries and related promotion entities that act as VIP room gaming promoters and a collaborator, today announced that its indirect wholly-owned subsidiary, Iao Kun Jeju Hotel Company Limited (“Iao Kun Jeju”), has entered into a share purchase agreement with Golden & Luxury Company, Ltd. (“Golden Luxury”), Solaire Korea Co., Ltd. and Bloomberry Resorts Corporation to acquire the Jeju Sun Hotel & Casino in Jeju, Korea for KRW117.5 billion in cash (US$101 million based on the exchange rate on June 22, 2016).

Jeju Sun Hotel & Casino is a 5-hibiscus hotel located in Jeju City on the island of Jeju-Do in Korea, conveniently located five minutes from Jeju International Airport. The hotel has 203 well-appointed rooms and suites, 2,125 square meters of gaming space featuring table games such as baccarat, blackjack, Sic Bo, roulette as well as the latest slots and electronic gaming machines, several reputable dining establishments featuring international cuisine options, a lobby lounge, bar and banquet facilities.

“We are excited to be acquiring the Jeju Sun Hotel and Casino in Korea, our first lodging venture, which effectively broadens our strategic focus toward becoming a full-service hospitality company,” said Mr. Lam Man Pou, Chairman of IKGH. “We believe the acquisition will materially expand our footprint in Asia into the growing Korean market and increasingly popular island of Jeju-Do while allowing us to further diversify and stabilize our revenue streams and cash flows. We expect the current Jeju Sun Hotel management team will remain to continue to run the newly renovated property, and we look forward to welcoming them to IKGH.”

Under the terms of the agreement, Iao Kun Jeju will acquire (i) 96.23% of the outstanding capital stock of Golden Luxury, as well as (ii) all loans and obligations under finance leases and all other monetary liabilities payable by Golden Luxury to Solaire Korea Co. and Bloomberry Resorts Corporation. IKGH intends to finance the acquisition through a loan and the issuance of equity, and the transaction is expected to close in the third quarter of 2016, subject to the satisfactory completion of due diligence and customary closing conditions, including the receipt of any required governmental approvals

First Quarter 2016 Financial Results

• For the three months ended March 31, 2016, IKGH recorded revenue of $17.9 million, a 57% decrease from the same period in 2015.
• Non-GAAP income, which is operating income before amortization of intangible assets and the change in fair value of contingent consideration related to the acquisitions of King’s Gaming, Bao Li Gaming and Oriental VIP Room, was $0.5 million, or $0.01 per share (basic and diluted), for the three months ended March 31, 2016, as compared to non-GAAP income of $8.1 million, or $0.13 per share (basic and diluted), for the three months ended March 31, 2015.

“The first quarter of 2016 continued to see a challenging environment both globally and with respect to the VIP market in Macau, and as a result, we continue to prudently manage our capital,” said Mr. Lam Man Pou, Chairman of IKGH. “While we remain positioned to benefit from any turnaround in the VIP market, we continue to seek additional opportunities in overseas markets to further diversify our revenue streams. We remain committed to expanding our overall presence and generating long-term value for our shareholders.”

Outlook for 2016

For the first five months of 2016, IKGH’s Rolling Chip Turnover was US$1.83 billion (an average of $0.37 billion per month), a decline of 46% compared to US$3.38 billion (an average of $0.68 billion per month) for the first five months of 2015.

The Company is maintaining 2016 Rolling Chip Turnover guidance for its five existing VIP rooms in Macau of between US$3.5 billion and US$4.5 billion.

HONG KONG--(BUSINESS WIRE)--

Iao Kun Group Holding Company Limited (“IKGH”) (IKGH), which operates through its subsidiaries and related promotion entities that act as VIP room gaming promoters and a collaborator, today announced unaudited Rolling Chip Turnover (as defined below) for the month of April 2016 at the company’s VIP rooms in Macau was US$0.32 billion, down 36% year-over-year, compared to US$0.50 billion for the month of April 2015. Win rate for the month of April 2016 was 3.95%.

For the first four months of 2016, IKGH’s Rolling Chip Turnover was US$1.52 billion (an average of $0.38 billion per month), down 44% year-over-year, compared to US$2.70 billion (an average of $0.68 billion per month) for the first four months of 2015.

The Company’s VIP rooms are primarily focused on high stakes baccarat. Baccarat accounts for approximately 88% of total Macau casino winnings according to the Macau Gaming Inspection and Coordination Bureau (DICJ). In Macau, two remuneration methods are used to compensate VIP room gaming promoters. On a fixed commission basis, VIP room gaming promoter revenues are based on an agreed percentage of Rolling Chip Turnover. On a win/loss split basis, the VIP room gaming promoter receives an agreed percentage of the “win” in the VIP gaming room (plus certain incentive allowances), and is required to also bear the same percentage of losses that might be incurred. Compared to the fixed commission basis, the win/loss split basis subjects the VIP room gaming promoter to the risk of losses from the gaming patron’s activity and to greater volatility.

Fourth Quarter 2015 Financial Results

• For the three months ended December 31, 2015, IKGH recorded revenue of $19.0 million, a 64% decrease from the same period of 2014.
• Non-GAAP income, which is operating income before amortization of intangible assets, impairment of goodwill and the change in fair value of contingent consideration related to the acquisitions of King’s Gaming, Bao Li Gaming and Oriental VIP Room, was $0.9 million, or $0.01 earnings per share (basic and diluted), for the three months ended December 31, 2015, compared to non-GAAP income of $8.0 million, or $0.13 earnings per share (basic and diluted), for the three months ended December 31, 2014.

“With a difficult 2015 behind us and with the expectation that 2016 will also be a challenging year for VIP gaming in Macau, we continue to prudently manage our capital to ensure we will be appropriately positioned when the market turns around,” said Mr. Lam Man Pou, Chairman of IKGH. “At the same time, we continue to source additional VIP opportunities in overseas markets to allow us to further diversify our revenue streams. We remain committed to finding suitable opportunities to expand our presence and ultimately generating long-term value for our shareholders.”

Outlook for 2016

For the first two months of 2016, IKGH’s Rolling Chip Turnover was US$0.81 billion (an average of $0.41 billion per month), down 44% year-over-year, compared to US$1.44 billion (an average of $0.72 billion per month) for the first two months of 2015.

The Company is providing 2016 Rolling Chip Turnover guidance for its five existing VIP rooms in Macau of between US$3.5 billion and US$4.5 billion.

HONG KONG--(BUSINESS WIRE)--Iao Kun Group Holding Company Limited (IKGH) (NASDAQ:IKGH), which operates through its subsidiaries and related promotion entities that act as VIP room gaming promoters and a collaborator, today announced unaudited Rolling Chip Turnover (as defined below) for the month of December 2015 at the company�s VIP rooms in Macau was US$0.42 billion, down 40% year-over-year, compared to US$0.71 billion for the month of December 2014. Win rate for the month of December 2015 was 3.28%.

For 2015, IKGH�s Rolling Chip Turnover was US$6.42 billion (an average of $0.54 billion per month), down 61% year-over-year, compared to US$16.64 billion (an average of $1.39 billion per month) for 2014.

The Company�s VIP rooms are primarily focused on high stakes baccarat. Baccarat accounts for approximately 88% of total Macau casino winnings according to the Macau Gaming Inspection and Coordination Bureau (DICJ). In Macau, two remuneration methods are used to compensate VIP room gaming promoters. On a fixed commission basis, VIP room gaming promoter revenues are based on an agreed percentage of Rolling Chip Turnover. On a win/loss split basis, the VIP room gaming promoter receives an agreed percentage of the �win� in the VIP gaming room (plus certain incentive allowances), and is required to also bear the same percentage of losses that might be incurred. Compared to the fixed commission basis, the win/loss split basis subjects the VIP room gaming promoter to the risk of losses from the gaming patron�s activity and to greater volatility.

As of September 1, 2012, all IKGH VIP rooms are on a revenue sharing remuneration model.

HONG KONG--(BUSINESS WIRE)--

Iao Kun Group Holding Company Limited (IKGH) (IKGH), which operates through its subsidiaries and related promotion entities that act as VIP room gaming promoters and a collaborator, today announced unaudited Rolling Chip Turnover (as defined below) for the month of November 2015 at the company's VIP rooms in Macau was US$0.33 billion, down 68% year-over-year, compared to US$1.05 billion for the month of November 2014. Win rate for the month of November 2015 was 3.62%.

For the first 11 months of 2015, IKGH�s Rolling Chip Turnover was US$6.00 billion (an average of $0.55 billion per month), down 62% year-over-year, compared to US$15.92 billion (an average of $1.45 billion per month) for the first 11 months of 2014.

The Company's VIP rooms are primarily focused on high stakes baccarat. Baccarat accounts for approximately 88% of total Macau casino winnings according to the Macau Gaming Inspection and Coordination Bureau (DICJ). In Macau, two remuneration methods are used to compensate VIP room gaming promoters. On a fixed commission basis, VIP room gaming promoter revenues are based on an agreed percentage of Rolling Chip Turnover. On a win/loss split basis, the VIP room gaming promoter receives an agreed percentage of the �win� in the VIP gaming room (plus certain incentive allowances), and is required to also bear the same percentage of losses that might be incurred. Compared to the fixed commission basis, the win/loss split basis subjects the VIP room gaming promoter to the risk of losses from the gaming patron�s activity and to greater volatility.

As of September 1, 2012, all IKGH VIP rooms are on a revenue sharing remuneration model.

HONG KONG--(BUSINESS WIRE)--

Iao Kun Group Holding Company Limited (�IKGH�) (IKGH), which operates through its subsidiaries and related promotion entities that act as VIP room gaming promoters and a collaborator, today announced unaudited Rolling Chip Turnover (as defined below) for the month of August 2015 at the company�s VIP rooms in Macau was US$0.44 billion, down 72% year-over-year, compared to US$1.53 billion for the month of August 2014. Win rate for the month of August 2015 was 4.13%.

For the first eight months of 2015, IKGH�s Rolling Chip Turnover was US$4.80 billion (an average of $0.60 billion per month), down 62% year-over-year, compared to US$12.58 billion (an average of $1.57 billion per month) for the first eight months of 2014.

The Company�s VIP rooms are primarily focused on high stakes baccarat. Baccarat accounts for approximately 88% of total Macau casino winnings according to the Macau Gaming Inspection and Coordination Bureau (DICJ). In Macau, two remuneration methods are used to compensate VIP room gaming promoters. On a fixed commission basis, VIP room gaming promoter revenues are based on an agreed percentage of Rolling Chip Turnover. On a win/loss split basis, the VIP room gaming promoter receives an agreed percentage of the �win� in the VIP gaming room (plus certain incentive allowances), and is required to also bear the same percentage of losses that might be incurred. Compared to the fixed commission basis, the win/loss split basis subjects the VIP room gaming promoter to the risk of losses from the gaming patron�s activity and to greater volatility.

As of September 1, 2012, all IKGH VIP rooms are on a revenue sharing remuneration model.

• Revenue of $21.9 million, a 56% decrease from the same period of 2014, primarily due to lower rolling chip turnover during the quarter. 
• Net (Loss) Per Share Basic and Diluted was $(0.38) vs. last years same quarterly loss of $(0.94).

affected by the ongoing macro environment, and as such we are continuing to prudently manage our capital,� said Mr. Lam Man Pou, Chairman of IKGH. �We continue to explore overseas alternatives, such as our recent acquisition of Australian profit interests, to expand our overall VIP presence and provide additional diversification to our current sources of revenue. We remain committed to finding these additional opportunities and ultimately generating long-term value for our shareholders.�

Outlook for 2015

For the first seven months of 2015, IKGH�s Rolling Chip Turnover was US$4.36 billion (an average of $0.62 billion per month), down 61% year-over-year, compared to US$11.03 billion (an average of $1.58 billion per month) for the first seven months of 2014.

The Company is adjusting its 2015 Rolling Chip Turnover guidance for its five existing VIP rooms in Macau to between US$6.0 billion and US$7.0 billion, from a previous range of US$7.0 billion and US$8.5 billion.

HONG KONG--(BUSINESS WIRE)--

Iao Kun Group Holding Company Limited (�IKGH�) (IKGH), which operates through its subsidiaries and related promotion entities that act as VIP room gaming promoters and a collaborator, today announced unaudited Rolling Chip Turnover (as defined below) for the month of July 2015 at the company�s VIP rooms in Macau was US$0.44 billion, down 72% year-over-year, compared to US$1.60 billion for the month of July 2014. Win rate for the month of July 2015 was 4.52%.

For the first seven months of 2015, IKGH�s Rolling Chip Turnover was US$4.36 billion (an average of $0.62 billion per month), down 61% year-over-year, compared to US$11.03 billion (an average of $1.58 billion per month) for the first seven months of 2014.

The Company�s VIP rooms are primarily focused on high stakes baccarat. Baccarat accounts for approximately 88% of total Macau casino winnings according to the Macau Gaming Inspection and Coordination Bureau (DICJ). In Macau, two remuneration methods are used to compensate VIP room gaming promoters. On a fixed commission basis, VIP room gaming promoter revenues are based on an agreed percentage of Rolling Chip Turnover. On a win/loss split basis, the VIP room gaming promoter receives an agreed percentage of the �win� in the VIP gaming room (plus certain incentive allowances), and is required to also bear the same percentage of losses that might be incurred. Compared to the fixed commission basis, the win/loss split basis subjects the VIP room gaming promoter to the risk of losses from the gaming patron�s activity and to greater volatility.

As of September 1, 2012, all IKGH VIP rooms are on a revenue sharing remuneration model.

HONG KONG--(BUSINESS WIRE)--

Iao Kun Group Holding Company Limited (�IKGH�) (IKGH), which operates through its subsidiaries and related promotion entities that act as VIP room gaming promoters and a collaborator, today announced unaudited Rolling Chip Turnover (as defined below) for the month of June 2015 at the company�s VIP rooms in Macau was US$0.54 billion, down 60% year-over-year, compared to US$1.35 billion for the month of June 2014. Win rate for the month of June 2015 was 2.50%.

For the first six months of 2015, IKGH�s Rolling Chip Turnover was US$3.92 billion (an average of $0.65 billion per month), down 58% year-over-year, compared to US$9.43 billion (an average of $1.57 billion per month) for the first six months of 2014.

The Company�s VIP rooms are primarily focused on high stakes baccarat. Baccarat accounts for approximately 88% of total Macau casino winnings according to the Macau Gaming Inspection and Coordination Bureau (DICJ). In Macau, two remuneration methods are used to compensate VIP room gaming promoters. On a fixed commission basis, VIP room gaming promoter revenues are based on an agreed percentage of Rolling Chip Turnover. On a win/loss split basis, the VIP room gaming promoter receives an agreed percentage of the �win� in the VIP gaming room (plus certain incentive allowances), and is required to also bear the same percentage of losses that might be incurred. Compared to the fixed commission basis, the win/loss split basis subjects the VIP room gaming promoter to the risk of losses from the gaming patron�s activity and to greater volatility.

As of September 1, 2012, all IKGH VIP rooms are on a revenue sharing remuneration model.

First Quarter 2015 Financial Results

For the three months ended March 31, 2015, IKGH recorded revenue of $41.7 million, a 48% decrease from the same period of 2014

• Net income, including the change in fair value of contingent consideration of $13.1 million related to the Bao Li Gaming and Oriental VIP Room acquisitions, was $17.1 million, or $0.28 per share (basic and diluted), for the first quarter of 2015, compared to net income of $3.2 million, or $0.05 per share (basic and diluted), for the same period of 2014.

"Given the ongoing macro environment in Macau, we expect the overall VIP market will continue to be affected in the near-term, and as such we will continue to prudently manage our capital," said Mr. Lam Man Pou, Chairman of IKGH. "To that end, we have been actively exploring alternatives to diversify our sources of revenue, and our recent acquisition of profit interests in junket operations at both the Crown Perth and Crown Melbourne Casinos allows us to begin bringing our VIP clients to Australia. This is our first step in expanding overseas and we remain committed to finding additional opportunities to further expand our presence and ultimately generating long-term value for our shareholders."

Outlook for 2015

For the first four months of 2015, IKGH's Rolling Chip Turnover was US$2.70 billion (an average of $0.68 billion per month), down 58% period-over-period, compared to US$6.49 billion (an average of $1.62 billion per month) for the first four months of 2014.

The Company is adjusting its 2015 Rolling Chip Turnover guidance for its five existing VIP rooms in Macau to between US$7.0 billion and US$8.5 billion, from a previous range of US$8.5 billion and US$10.0 billion.

HONG KONG--(BUSINESS WIRE)--

Iao Kun Group Holding Company Limited (“IKGH” or the “Company”) (IKGH), which operates through its subsidiaries and related promotion entities that act as VIP room gaming promoters and a collaborator, previously announced that its Board of Directors had authorized a regular semi-annual dividend (the “Six-Month Dividend”) equal to (i) 15% of IKGH’s non-GAAP net income for the most recently completed six months ended June 30, divided by (ii) the number of ordinary shares outstanding on the record date for such dividend.

In addition, for each year after the release of the Company’s year-end financial results, the Board had authorized a regular dividend (the “Annual Dividend”) equal to (i) 15% of the Company’s non-GAAP net income for the most recently completed fiscal year less the amount paid pursuant to the Six-Month Dividend, divided by (ii) the number of ordinary shares outstanding on the record date for such dividend.

The Company today announced the 2014 Annual Dividend will be $0.0169 per ordinary share outstanding to shareholders of record as of June 5, 2015 and that the payment date will be June 22, 2015.

HONG KONG--(BUSINESS WIRE)--

Iao Kun Group Holding Company Limited (�IKGH�) (IKGH), which operates through its subsidiaries and related promotion entities that act as VIP room gaming promoters and a collaborator, today announced that it has completed the purchase of all of the profit interests of Mr. Lou Kan Kuong (the �Seller�) for acting as a junket operator for the Crown Perth Casino in Perth, Australia and for the Crown Melbourne Casino Complex in Melbourne, Australia. The Seller, who is currently an officer of IKGH, recently entered into agreements to act as a junket operator for the Casinos on behalf of IKGH. IKGH expects to begin generating revenues under these agreements beginning on May 16, 2015.

IKGH purchased the interests for nominal value.

�Today marks an important step in beginning to diversify our sources of revenue and expanding our presence internationally,� said IKGH Chairman Lam. �We�re excited to begin bringing our VIP clients to Australia and remain committed to finding additional opportunities to further expand our presence overseas and ultimately generating long-term value for our shareholders.�

HONG KONG--(BUSINESS WIRE)--

For the first four months of 2015, IKGH's Rolling Chip Turnover was US$2.70 billion (an average of $0.68 billion per month), down 58% year-over-year, compared to US$6.49 billion (an average of $1.62 billion per month) for the first four months of 2014.

HONG KONG--(BUSINESS WIRE)--

Iao Kun Group Holding Company Limited (IKGH) (IKGH), which operates through its subsidiaries and related promotion entities that act as VIP room gaming promoters and a collaborator, today announced that it has entered into a non-binding memorandum of understanding whereby it will acquire all of the profit interests of Mr. Lou Kan Kuong (the Seller) for acting as a junket operator for the Crown Perth Casino in Perth, Australia and for the Crown Melbourne Casino in Melbourne, Australia. The Seller, who is currently an officer of IKGH, recently entered into agreements to act as a junket operator for the Casinos on behalf of IKGH. IKGH expects to close the transaction by mid-May 2015 and to begin generating initial revenues under this agreement shortly thereafter.

IKGH is purchasing the interests for nominal value.

"We are excited to take this first step toward expanding our operations and presence internationally and beginning to diversify our sources of revenue,� said IKGH Chairman Lam. �We are pleased to have the opportunity to establish ourselves in Australia and work with both the Crown Perth Casino and Crown Melbourne Casino to bring our VIP clients to their first-class facilities. Further, we remain committed to finding additional opportunities to expand our presence overseas and ultimately generating long-term value for our shareholders."

IAO KUN GROUP HOLDING COMPANY LIMITED

F/K/A ASIA ENTERTAINMENT & RESOURCES LTD.

CONSOLIDATED STATEMENTS OF OPERATIONS

AND COMPREHENSIVE INCOME

FOR THE YEARS ENDED DECEMBER 31,

Management Discussion and Analysis

Revenue from VIP gaming promotion operations was US$234 million for the year ended December 31, 2014, as compared to US$237 million for the year ended December 31, 2013, representing an decrease of 1.3%, whereas revenue as a percentage of rolling chip turnover increased from 1.39% for the year ended December 31, 2013 to 1.41% in 2014, representing an increase of 1.2%. Such increases were primarily a result of (i) a win rate of 2.98% for the year ended December 31, 2014, which is within the statistical average win rate range, compared to a win rate of 2.97% for the year ended December 31, 2013; (ii) slower revenue growth of VIP baccarat as consistent with the overall growth of gaming revenue in Macau; and (iii) the economic downturn and tightening of credit in mainland China, where the majority of our VIP gaming patrons come from. The reduction in amounts of gaming credit we make available to VIP gaming patrons adversely impacted the growth in our total rolling chip turnover in 2012, 2013 and 2014. If the Chinese economy improves and demonstrates sustainable momentum, we may consider relaxing our credit extension policy.

During the fourth quarter of 2014, we experienced a significant decrease in our Rolling Chip Turnover compared to the same period in 2013. Our Rolling Chip Turnover in the fourth quarter was $2.9 billion and $4.4 billion in 2014 and 2013, respectively, a 34% decrease. Our Rolling Chip Turnover was significantly impacted by:
 

 · a higher than the statistical average win rate, which results in lower Rolling Chip Turnover;

 · certain players are being deterred by a variety of factors including tighter visa policies for mainland Chinese visitors, increased oversight of credit cards that many gamblers use to access funds in Macau, and new smoking restrictions at casinos; 

 · a lack of demand from high rollers primarily due to recent anti-corruption enforcement act by PRC government; and

 · our tightening policy to provide gaming credit.

HONG KONG--(BUSINESS WIRE)--

Iao Kun Group Holding Company Limited (�IKGH�) (IKGH), which operates through its subsidiaries and related promotion entities that act as VIP room gaming promoters and collaborator, today announced unaudited Rolling Chip Turnover (as defined below) for the month of March 2015 at the company�s VIP rooms in Macau was US$0.76 billion, down 57% year-over-year, compared to US$1.75 billion for the month of March 2014. Win rate for the month of March 2015 was 4.51%.

For the first three months of 2015, IKGH�s Rolling Chip Turnover was US$2.20 billion (an average of $0.73 billion per month), down 54% year-over-year, compared to US$4.77 billion (an average of $1.59 billion per month) for the first three months of 2014.

The Company�s VIP rooms are primarily focused on high stakes baccarat. Baccarat accounts for approximately 88% of total Macau casino winnings according to the Macau Gaming Inspection and Coordination Bureau (DICJ). In Macau, two remuneration methods are used to compensate VIP room gaming promoters. On a fixed commission basis, VIP room gaming promoter revenues are based on an agreed percentage of Rolling Chip Turnover. On a win/loss split basis, the VIP room gaming promoter receives an agreed percentage of the �win� in the VIP gaming room (plus certain incentive allowances), and is required to also bear the same percentage of losses that might be incurred. Compared to the fixed commission basis, the win/loss split basis subjects the VIP room gaming promoter to the risk of losses from the gaming patron�s activity and to greater volatility.

Fourth Quarter 2014 Financial Results 

• Revenue of $52.3 million, a 4% increase from the same period of 2013.
• Non-GAAP income, which is operating income before amortization of intangible assets and the change in fair value of contingent consideration related to the acquisitions of King�s Gaming, Bao Li Gaming and Oriental VIP Room, was $8.0 million, or $0.13 per share (fully diluted), for the three months ended December 31, 2014 as compared to a non-GAAP loss of $3.5 million, or $(0.06) per share (basic and diluted), for the three months ended December 31, 2013.

Outlook for 2015 

For the first two months of 2015, IKGH�s Rolling Chip Turnover was US$1.44 billion (an average of $0.72 billion per month), down 52% year-over-year, compared to US$3.02 billion (an average of $1.51 billion per month) for the first two months of 2014.

The Company is providing 2015 Rolling Chip Turnover guidance for its five existing VIP rooms in Macau of between US$8.5 billion and US$10.0 billion.

HONG KONG--(BUSINESS WIRE)--

Iao Kun Group Holding Company Limited (�IKGH�) (IKGH), which operates through its subsidiaries and related promotion entities that act as VIP room gaming promoters and collaborator, today announced unaudited Rolling Chip Turnover (as defined below) for the month of February 2015 at the company�s VIP rooms in Macau was US$0.63 billion, down 64% year-over-year, compared to US$1.73 billion for the month of February 2014. Win rate for the month of February 2015 was 4.28%.

For the first two months of 2015, IKGH�s Rolling Chip Turnover was US$1.44 billion (an average of $0.72 billion per month), down 52% year-over-year, compared to US$3.02 billion (an average of $1.51 billion per month) for the first two months of 2014.

The Company�s VIP rooms are primarily focused on high stakes baccarat. Baccarat accounts for approximately 88% of total Macau casino winnings according to the Macau Gaming Inspection and Coordination Bureau (DICJ). In Macau, two remuneration methods are used to compensate VIP room gaming promoters. On a fixed commission basis, VIP room gaming promoter revenues are based on an agreed percentage of Rolling Chip Turnover. On a win/loss split basis, the VIP room gaming promoter receives an agreed percentage of the �win� in the VIP gaming room (plus certain incentive allowances), and is required to also bear the same percentage of losses that might be incurred. Compared to the fixed commission basis, the win/loss split basis subjects the VIP room gaming promoter to the risk of losses from the gaming patron�s activity and to greater volatility.

As of September 1, 2012, all IKGH VIP rooms are on a revenue sharing remuneration model.

HONG KONG--(BUSINESS WIRE)--

Iao Kun Group Holding Company Limited (“IKGH”) (IKGH), which operates through its subsidiaries and related promotion entities that act as VIP room gaming promoters and collaborator, today announced unaudited Rolling Chip Turnover (as defined below) for the month of January 2015 at the company’s VIP rooms in Macau was US$0.81 billion, down 37% year-over-year, compared to US$1.29 billion for the month of January 2014. Win rate for the month of January 2015 was 3.76%.

The Company’s VIP rooms are primarily focused on high stakes baccarat. Baccarat accounts for approximately 88% of total Macau casino winnings according to the Macau Gaming Inspection and Coordination Bureau (DICJ). In Macau, two remuneration methods are used to compensate VIP room gaming promoters. On a fixed commission basis, VIP room gaming promoter revenues are based on an agreed percentage of Rolling Chip Turnover. On a win/loss split basis, the VIP room gaming promoter receives an agreed percentage of the “win” in the VIP gaming room (plus certain incentive allowances), and is required to also bear the same percentage of losses that might be incurred. Compared to the fixed commission basis, the win/loss split basis subjects the VIP room gaming promoter to the risk of losses from the gaming patron’s activity and to greater volatility.

As of September 1, 2012, all IKGH VIP rooms are on a revenue sharing remuneration model.

HONG KONG--(BUSINESS WIRE)--

Iao Kun Group Holding Company Limited (“IKGH”) (IKGH), which operates through its subsidiaries and related promotion entities that act as VIP room gaming promoters and collaborator, today announced unaudited Rolling Chip Turnover (as defined below) for the month of December 2014 at the company’s VIP rooms in Macau was US$0.71 billion, down 48% year-over-year, compared to US$1.36 billion for the month of December 2013. Win rate for the month of December 2014 was 4.56%.

For 2014, IKGH’s Rolling Chip Turnover was US$16.60 billion (an average of $1.38 billion per month), down 3% year-over-year, compared to US$17.04 billion (an average of $1.42 billion per month) for 2013.

The Company’s VIP rooms are primarily focused on high stakes baccarat. Baccarat accounts for approximately 88% of total Macau casino winnings according to the Macau Gaming Inspection and Coordination Bureau (DICJ). In Macau, two remuneration methods are used to compensate VIP room gaming promoters. On a fixed commission basis, VIP room gaming promoter revenues are based on an agreed percentage of Rolling Chip Turnover. On a win/loss split basis, the VIP room gaming promoter receives an agreed percentage of the “win” in the VIP gaming room (plus certain incentive allowances), and is required to also bear the same percentage of losses that might be incurred. Compared to the fixed commission basis, the win/loss split basis subjects the VIP room gaming promoter to the risk of losses from the gaming patron’s activity and to greater volatility.

As of September 1, 2012, all IKGH VIP rooms are on a revenue sharing remuneration model

HONG KONG--(BUSINESS WIRE)--

Iao Kun Group Holding Company Limited (“IKGH”) (IKGH), which operates through its subsidiaries and related promotion entities that act as VIP room gaming promoters and collaborator, today announced unaudited Rolling Chip Turnover (as defined below) for the month of November 2014 at the company’s VIP rooms in Macau was US$1.05 billion, down 30% year-over-year, compared to US$1.50 billion for the month of November 2013. Win rate for the month of November 2014 was 3.66%.

For the first eleven months of 2014, IKGH’s Rolling Chip Turnover was US$15.89 billion (an average of $1.44 billion per month), up 1% year-over-year, compared to US$15.69 billion (an average of $1.43 billion per month) for the first eleven months of 2013.

The Company’s VIP rooms are primarily focused on high stakes baccarat. Baccarat accounts for approximately 88% of total Macau casino winnings according to the Macau Gaming Inspection and Coordination Bureau (DICJ). In Macau, two remuneration methods are used to compensate VIP room gaming promoters. On a fixed commission basis, VIP room gaming promoter revenues are based on an agreed percentage of Rolling Chip Turnover. On a win/loss split basis, the VIP room gaming promoter receives an agreed percentage of the “win” in the VIP gaming room (plus certain incentive allowances), and is required to also bear the same percentage of losses that might be incurred. Compared to the fixed commission basis, the win/loss split basis subjects the VIP room gaming promoter to the risk of losses from the gaming patron’s activity and to greater volatility.

As of September 1, 2012, all IKGH VIP rooms are on a revenue sharing remuneration model.

HONG KONG--(BUSINESS WIRE)--

Iao Kun Group Holding Company Limited (IKGH) (IKGH), which operates through its subsidiaries and related promotion entities that act as VIP room gaming promoters and collaborator, today announced unaudited Rolling Chip Turnover (as defined below) for the month of October 2014 at the company�s VIP rooms in Macau was US$1.10 billion, down 27% year-over-year, compared to US$1.51 billion for the month of October 2013. Win rate for the month of October 2014 was 3.90%.

For the first ten months of 2014, IKGH�s Rolling Chip Turnover was US$14.84 billion (an average of $1.48 billion per month), up 5% year-over-year, compared to US$14.19 billion (an average of $1.42 billion per month) for the first ten months of 2013.

The Companys VIP rooms are primarily focused on high stakes baccarat. Baccarat accounts for approximately 88% of total Macau casino winnings according to the Macau Gaming Inspection and Coordination Bureau (DICJ). In Macau, two remuneration methods are used to compensate VIP room gaming promoters. On a fixed commission basis, VIP room gaming promoter revenues are based on an agreed percentage of Rolling Chip Turnover. On a win/loss split basis, the VIP room gaming promoter receives an agreed percentage of the �win� in the VIP gaming room (plus certain incentive allowances), and is required to also bear the same percentage of losses that might be incurred. Compared to the fixed commission basis, the win/loss split basis subjects the VIP room gaming promoter to the risk of losses from the gaming patron�s activity and greater volatility.

As of September 1, 2012, all IKGH VIP rooms are on a revenue sharing remuneration model.

Iao Kun Group Holding Company Limited (IKGH) (IKGH), which operates through its subsidiaries and related promotion entities that act as VIP room gaming promoters and collaborator, today announced unaudited Rolling Chip Turnover (as defined below) for the month of September 2014 at the company�s VIP rooms in Macau was US$1.18 billion, up 5% year-over-year, compared to US$1.12 billion for the month of September 2013. Win rate for the month of September 2014 was 2.84%.

For the first nine months of 2014, IKGH's Rolling Chip Turnover was US$13.74 billion (an average of $1.53 billion per month), up 8% year-over-year, compared to US$12.68 billion (an average of $1.41 billion per month) for the first nine months of 2013.

The Company's VIP rooms are primarily focused on high stakes baccarat. Baccarat accounts for approximately 88% of total Macau casino winnings according to the Macau Gaming Inspection and Coordination Bureau (DICJ). In Macau, two remuneration methods are used to compensate VIP room gaming promoters. On a fixed commission basis, VIP room gaming promoter revenues are based on an agreed percentage of Rolling Chip Turnover. On a win/loss split basis, the VIP room gaming promoter receives an agreed percentage of the win in the VIP gaming room (plus certain incentive allowances), and is required to also bear the same percentage of losses that might be incurred. Compared to the fixed commission basis, the win/loss split basis subjects the VIP room gaming promoter to the risk of losses from the gaming patron�s activity and greater volatility.

Iao Kun Group Holding Company Limited (IKGH or the Company) (IKGH), which operates through its subsidiaries and related promotion entities that act as VIP room gaming promoters and collaborator, previously announced that its Board of Directors had authorized a regular dividend each year after the release of the Company�s financial results for the six months ending June 30 (the Six Month Dividend). The Board of Directors previously reduced the Six Month Dividend from $0.08 per share to $0.026 per share beginning with the Six Month Dividend payable for 2014.

The Company today announces that the record date for the 2014 Six Month Dividend will be October 3, 2014, and that the payment date will be October 14, 2014.

HONG KONG--(BUSINESS WIRE)--Iao Kun Group Holding Company Limited (�IKGH�) (NASDAQ:IKGH), which operates through its subsidiaries and related promotion entities that act as VIP room gaming promoters and collaborator, today announced unaudited Rolling Chip Turnover (as defined below) for the month of August 2014 at the company's VIP rooms in Macau was US$1.53 billion, up 3% year-over-year, compared to US$1.49 billion for the month of August 2013. Win rate for the month of August 2014 was 2.50%.

For the first eight months of 2014, IKGH's Rolling Chip Turnover was US$12.56 billion (an average of $1.57 billion per month), up 9% year-over-year, compared to US$11.53 billion (an average of $1.44 billion per month) for the first eight months of 2013.

The Company's VIP rooms are primarily focused on high stakes baccarat. Baccarat accounts for approximately 88% of total Macau casino winnings according to the Macau Gaming Inspection and Coordination Bureau (DICJ). In Macau, two remuneration methods are used to compensate VIP room gaming promoters. On a fixed commission basis, VIP room gaming promoter revenues are based on an agreed percentage of Rolling Chip Turnover. On a win/loss split basis, the VIP room gaming promoter receives an agreed percentage of the win in the VIP gaming room (plus certain incentive allowances), and is required to also bear the same percentage of losses that might be incurred. Compared to the fixed commission basis, the win/loss split basis subjects the VIP room gaming promoter to the risk of losses from the gaming patron's activity and greater volatility.

• For the three months ended June 30, 2014, IKGH recorded revenue of $49.7 million, a 22% decrease from the same period of 2013
• Non-GAAP loss, which is operating loss before amortization of intangible assets and the change in fair value of contingent consideration related to the acquisitions of King�s Gaming, Bao Li Gaming and Oriental VIP Room, was $7.5 million, or $(0.12) per share (fully diluted), for the three months ended June 30, 2014 as compared to non-GAAP income of $9.1 million, or $0.20 per share (fully diluted) for the three months ended June 30, 2013.

"Although our Rolling Chip Turnover improved from the prior-year quarter, our second quarter performance was clearly affected by the low win rate, which was well below the statistical average,� said Mr. Man Pou Lam (Mr. Lam), Chairman of IKGH. �We were pleased that the Hong Kong Stock Exchange completed the initial review of our application for listing and the application is currently being comprehensively vetted. Overall, we remain committed to expanding our business presence in the Macau VIP gaming market and increasing our market share while prudently managing our capital to create long-term value for our shareholders."

Outlook for 2014

For the first seven months of 2014, IKGH�s Rolling Chip Turnover was US$11.0 billion (an average of $1.6 billion per month), up 10% year-over-year, compared to US$10.0 billion (an average of $1.4 billion per month) for the first seven months of 2013.

The Company is maintaining its 2014 Rolling Chip Turnover guidance for its five existing VIP rooms in Macau of US$17 billion to US$19 billion.

HONG KONG--(BUSINESS WIRE)--Iao Kun Group Holding Company Limited (�IKGH�) (NASDAQ:IKGH), which operates through its subsidiaries and related promotion entities that act as VIP room gaming promoters and collaborator, today announced unaudited Rolling Chip Turnover (as defined below) for the month of June 2014 at the company�s VIP rooms in Macau was US$1.35 billion, up 2% year-over-year, compared to US$1.33 billion for the month of June 2013. Win rate for the month of June 2014 was 2.29%.

For the first six months of 2014, IKGH�s Rolling Chip Turnover was US$9.43 billion (an average of $1.57 billion per month), up 10% year-over-year, compared to US$8.54 billion (an average of $1.42 billion per month) for the first six months of 2013.

The Company�s VIP rooms are primarily focused on high stakes baccarat. Baccarat accounts for approximately 88% of total Macau casino winnings according to the Macau Gaming Inspection and Coordination Bureau (DICJ). In Macau, two remuneration methods are used to compensate VIP room gaming promoters. On a fixed commission basis, VIP room gaming promoter revenues are based on an agreed percentage of Rolling Chip Turnover. On a win/loss split basis, the VIP room gaming promoter receives an agreed percentage of the �win� in the VIP gaming room (plus certain incentive allowances), and is required to also bear the same percentage of losses that might be incurred. Compared to the fixed commission basis, the win/loss split basis subjects the VIP room gaming promoter to the risk of losses from the gaming patron�s activity and greater volatility.

As of September 1, 2012, all IKGH VIP rooms are on a revenue sharing remuneration model.

HONG KONG--(BUSINESS WIRE)--Iao Kun Group Holding Company Limited (NASDAQ:IKGH), which operates through its subsidiaries and related promotion entities that act as VIP room gaming promoters and collaborator, announced today that the Company entered into a termination agreement with Messrs. Lam Man Pou and Vong Hon Kun (the Lender), each an executive officer and a director of the company, whereby the parties agreed to terminate the guaranty obligations of the Lenders pursuant to a loan agreement and guaranty (the Loan Agreement) entered into by the parties on February 2, 2010.

The parties agreed to terminate the guaranty obligations for the reasons of the Company's financial independence and to minimize reliance on the Lenders, which conform with the listing standards in Hong Kong.

IAO KUN GROUP HOLDING COMPANY LIMITED

F/K/A ASIA ENTERTAINMENT & RESOURCES LTD.

CONSOLIDATED STATEMENTS OF OPERATIONS

AND COMPREHENSIVE INCOME

FOR THE YEARS ENDED DECEMBER 31,

Management Discussion and Analysis

Year ended December 31, 2013 Compared to the Year ended December 31, 2012

The following table sets forth certain information regarding our results of operations for the years ended December 31, 2013 and 2012 (all figures are in $ thousands except ratios and percentages).

Non-GAAP Financial Results

The following Non-GAAP financial results for the years ended December 31, 2013 and 2012 are used by management to evaluate our financial performance prior to the deduction of amortization of intangible assets and change in fair value of contingent consideration related to the acquisitions of King's Gaming, Bao Li Gaming and Oriental VIP Room (all figures are in $ thousands except ratios and percentages)

HONG KONG--(BUSINESS WIRE)--Asia Entertainment & Resources Ltd. (�AERL�) (NASDAQ:AERL), which operates through its subsidiaries and related promoter companies that act as VIP room gaming promoters, today announced that due to unforeseen circumstances may have to delay its planned listing on the Hong Kong exchange.

The company was recently informed that the sponsor�s principal who is in charge of our Hong Kong listing application has unexpectedly passed away at home. Such unfortunate development was completely unanticipated and resulted in complications for the Hong Kong dual listing application which has otherwise been progressing according to plan. As a consequence of this event, a new sponsor�s principal would need to be appointed in order for the project to proceed. The role of sponsor�s principal in the sponsor�s team in charge of the project is critical as he or she is in charge of the overall project execution including directing the due diligence exercise to the satisfaction of Hong Kong regulatory authorities. Failure of such sponsor�s principal to fulfill his or her duty may lead to misleading statements or material omissions relating to a listing applicant being presented to investors which could result in potential criminal or civil liability for the sponsor firm and also personal liability for the sponsor�s principal. As such, the sponsor is currently reviewing the situation and is expected to provide, within a reasonable time, a replacement sponsor�s principal who would carry on all the relevant due diligence work relating to our listing application in order to be satisfied that our application is ready to be filed. Such developments may unavoidably create certain delays for our listing application timetable and the company is still assessing the potential impacts and we will keep the investors updated on further developments on the filing

HONG KONG--(BUSINESS WIRE)--Asia Entertainment & Resources Ltd. (�AERL�) (NASDAQ:AERL), which operates through its subsidiaries and related promoter companies that act as VIP room gaming promoters, today announced unaudited Rolling Chip Turnover (as defined below) for the month of August 2013 at the company�s VIP rooms in Macau was US$1.49 billion, up 1% year-over-year, compared to US$1.47 billion for the month of August 2012. This compares with a year-over-year increase in overall gross gaming revenue for Macau of 18% for August 2013. Win rate for the month of August 2013 was 2.65%.

For the first eight months of 2013, AERL�s Rolling Chip Turnover was US$11.53 billion (an average of $1.44 billion per month), down 10% year-over-year, compared to US$12.85 billion (an average of $1.61 billion per month) for the first eight months of 2012. Macau gross gaming revenue increased 16% for the first eight months of 2013.

The increase in Rolling Chip Turnover was primarily attributable to the completion in June 2013 of the acquisition of 100% of the profit interest in the operations of the VIP gaming room at Level 1 of Le Royal Arc Casino.

The Company�s VIP rooms are primarily focused on high stakes baccarat. Baccarat accounts for approximately 88% of total Macau casino winnings according to the Macau Gaming Inspection and Coordination Bureau (DICJ). In Macau, two remuneration methods are used to compensate VIP room gaming promoters. On a fixed commission basis, VIP room gaming promoter revenues are based on an agreed percentage of Rolling Chip Turnover. On a win/loss split basis, the VIP room gaming promoter receives an agreed percentage of the �win� in the VIP gaming room (plus certain incentive allowances), and is required to also bear the same percentage of losses that might be incurred. Compared to the fixed commission basis, the win/loss split basis subjects the VIP room gaming promoter to the risk of losses from the gaming patron�s activity and greater volatility.

As of September 1, 2012, all AERL VIP rooms are on a revenue sharing remuneration model.

Second Quarter 2013 Financial Results

• Total Revenues was $63,544,865 vs. last years $58,531,067.
• Net loss, including the change in fair value of contingent consideration of $9.6 million related to the King�s Gaming and Bao Li Gaming acquisitions, was $3.0 million, or $0.07 per share (fully diluted), in the second quarter of 2013 compared to net income of $22.0 million, or $0.48 per share (fully diluted), in the same period of 2012.
• Non-GAAP income, which is operating income before amortization of intangible assets and the change in fair value of contingent consideration related to the acquisitions of King's Gaming and Bao Li Gaming declined 42.0% to $9.1 million, or $0.19 per share (fully diluted), for the three months ended June 30, 2013 as compared to income of $15.6 million, or $0.34 per share (fully diluted), for the three months ended June 30, 2012.

For the three months ended June 30, 2013, AERL recorded revenue of $63.5 million, an 8.6% increase from the same period of 2012. The increase in revenues was a result of a higher than normal win rate of 3.06%, the change in remuneration model from the fixed commission model of 1.25% on Rolling Chip Turnover to the revenue sharing model in September 2012, and an increase in net services revenues related to hotel and casino services charged to junket agents after the adjustment to commission rates.

The decrease in net income and Non-GAAP income for the three months ended June 30, 2013 was due primarily to decreased Rolling Chip Turnover, higher commissions as a result of greater non-marker commission paid, the upward adjustment to commission rates as a result of the company compensating its junket agents for no longer providing complimentary hotel and casino services, increased market competition, and a smaller percentage of direct business. AERL also incurred higher selling, general and administrative expenses for the three months ended June 30, 2013, including $3.3 million of additional costs related to Hong Kong Listing expenses, acquisition costs, additional management fees paid as a result of the acquisition of Bao Li Gaming in September 2012 and an increase in the number of employees due to direct employment of some employees from Pak Si and the acquisition of Bao Li.

�We continue to conservatively manage our business to reduce risk exposure that can impair longer-term growth,� said Mr. Man Pou Lam (Mr. Lam), Chairman of AERL. �We were pleased to complete the acquisition of our VIP room at Le Royal Arc Casino, which further expands our presence in the Macau VIP gaming market, as well as concluding our Rights Offering which puts us on the path to listing our stock on the Hong Kong exchange. Our ultimate goal remains unchanged � to increase our market share leading to growth in revenue and net income, and to create long-term shareholder value.�

Outlook for 2013

For the first six months of 2013, AERL�s Rolling Chip Turnover was $8.6 billion (an average of $1.4 billion per month), down 15% year-over-year, compared to US$10.1 billion (an average of $1.7 billion per month) for the first six months of 2012. Win rate for the first six months of 2013 was 3.17%.

In view of the tightening of credit to junket agents, the Company is providing Rolling Chip Turnover guidance for its five existing VIP rooms in Macau of $19 billion in the aggregate for full year 2013.

The Company believes that for the remainder of 2013, all of its business will remain on a revenue sharing basis. The Company is providing Non-GAAP income guidance for the year ended December 31, 2013 of $60 million to $75 million based on the current and expected performance of its existing five VIP gaming rooms in Macau. The guidance includes $2.8 million in additional expenses associated with the Hong Kong Listing and acquisition of the VIP gaming room at Le Royal Arc Casino in Macau, and does not take into consideration any possible future expansion or additional VIP gaming rooms.

HONG KONG--(BUSINESS WIRE)--Asia Entertainment & Resources Ltd. (�AERL�) (NASDAQ: AERL), which operates through its subsidiaries and related promoter companies that act as VIP room gaming promoters, today announced unaudited Rolling Chip Turnover (as defined below) for the month of July 2013 at the company�s VIP rooms in Macau was US$1.50 billion, up 15% year-over-year, compared to US$1.31 billion for the month of July 2012. This compares with a year-over-year increase in overall gross gaming revenue for Macau of 20% for July 2013. Win rate for the month of July 2013 was 3.00%.

For the first seven months of 2013, AERL�s Rolling Chip Turnover was US$10.04 billion (an average of $1.43 billion per month), down 12% year-over-year, compared to US$11.38 billion (an average of $1.63 billion per month) for the first seven months of 2012. Macau gross gaming revenue increased 16% for the first seven months of 2013.

The increase in Rolling Chip Turnover was primarily attributable to the completion in June 2013 of the acquisition of 100% of the profit interest in the operations of the VIP gaming room at Level 1 of Le Royal Arc Casino, as well as an improved chip turnover in AERL�s other four VIP rooms.

The Company�s VIP rooms are primarily focused on high stakes baccarat. Baccarat accounts for approximately 88% of total Macau casino winnings according to the Macau Gaming Inspection and Coordination Bureau (DICJ). In Macau, two remuneration methods are used to compensate VIP room gaming promoters. On a fixed commission basis, VIP room gaming promoter revenues are based on an agreed percentage of Rolling Chip Turnover. On a win/loss split basis, the VIP room gaming promoter receives an agreed percentage of the �win� in the VIP gaming room (plus certain incentive allowances), and is required to also bear the same percentage of losses that might be incurred. Compared to the fixed commission basis, the win/loss split basis subjects the VIP room gaming promoter to the risk of losses from the gaming patron�s activity and greater volatility.

As of September 1, 2012, all AERL VIP rooms are on a revenue sharing remuneration model.

HONG KONG--(BUSINESS WIRE)--Asia Entertainment & Resources Ltd. (NASDAQ: AERL), which operates through its subsidiaries and related promoter companies that act as VIP room gaming promoters, today announced unaudited Rolling Chip Turnover (as defined below) for the month of June 2013 at the company�s VIP rooms in Macau was US$1.33 billion, down 3% year-over-year, compared to US$1.37 billion for the month of June 2012. This compares with a year-over-year increase in overall gross gaming revenue for Macau of 21% for June 2013. Win rate for the month of June 2013 was 3.09%.

For the first six months of 2013, AERL�s Rolling Chip Turnover was US$8.54 billion (an average of $1.42 billion per month), down 15% year-over-year, compared to US$10.07 billion (an average of $1.68 billion per month) for the first six months of 2012. Macau gross gaming revenue increased 15% for the first six months of 2013.

The decrease in Rolling Chip Turnover was attributable to the Company�s self-directed tightening of credit to agents due to its conservative view on the Chinese economy.

The Company�s VIP rooms are primarily focused on high stakes baccarat. Baccarat accounts for approximately 88% of total Macau casino winnings according to the Macau Gaming Inspection and Coordination Bureau (DICJ). In Macau, two remuneration methods are used to compensate VIP room gaming promoters. On a fixed commission basis, VIP room gaming promoter revenues are based on an agreed percentage of Rolling Chip Turnover. On a win/loss split basis, the VIP room gaming promoter receives an agreed percentage of the �win� in the VIP gaming room (plus certain incentive allowances), and is required to also bear the same percentage of losses that might be incurred. Compared to the fixed commission basis, the win/loss split basis subjects the VIP room gaming promoter to the risk of losses from the gaming patron�s activity and greater volatility.

As of September 1, 2012, all AERL VIP rooms are on a revenue sharing remuneration model.

HONG KONG--(BUSINESS WIRE)--Asia Entertainment & Resources Ltd.  (NASDAQ: AERL), which operates through its subsidiaries and related promoter companies as a VIP room gaming promoter, today announced the conclusion of its rights offering (the �Rights Offering�) and standby purchase of shares not sold in the Rights Offering. AERL will issue a total of 19,510,550 ordinary shares and raised $63.5 million in gross proceeds from the Rights Offering and the standby purchase. This includes 9,767,550 shares issued to holders upon exercise of their subscription rights and 9,743,000 shares issued to the standby purchasers pursuant to the terms of a standby purchase agreement.

AERL anticipates using the net proceeds of the Rights Offering, which is approximately $61.4 million following the deduction of offering expenses and costs related to the transaction, to repay outstanding indebtedness owed to certain of AERLs shareholders. These shareholders are also standby purchasers.

HONG KONG--(BUSINESS WIRE)--Asia Entertainment & Resources Ltd. (�AERL�) (NASDAQ: AERL), which operates through its subsidiaries and related promoter companies as a VIP room gaming promoter, today announced that it has completed the acquisition of 100% of the profit interest of the VIP gaming room at Level 1 of Le Royal Arc Casino located in NAPE, Downtown Macau. The VIP gaming room has six tables and is operated under the Sociedade de Jogos de Macau S.A.�s concession. With the completion of this acquisition AERL will operate 40 tables in five VIP rooms with four concessionaires in the Macau market.

�The addition of this VIP gaming room will enhance our ability to serve our existing customers, and by combining our operations and network of agents with that of the VIP gaming room at Level 1 of Le Royal Arc Casino, we can further expand our presence in the Macau VIP gaming market,� said AERL Chairman Lam.

HONG KONG--(BUSINESS WIRE)--Asia Entertainment & Resources Ltd. (AERL) (NASDAQ: AERL), which operates through its subsidiaries and related promoter companies as a VIP room gaming promoter, today announced that it has completed due diligence in connection with its proposed acquisition of all of the outstanding interests and operations of the VIP gaming room at Level 1 of Le Royal Arc Casino located in NAPE, Macau. Subject to satisfaction of customary closing conditions, AERL expects to close the transaction by June 30, 2013. Following this transaction, AERL will be able to expand its existing agents network. Upon the closing of the acquisition, AERL will have 40 tables in five VIP rooms.

HONG KONG--(BUSINESS WIRE)--Asia Entertainment & Resources Ltd.  (NASDAQ: AERL), which operates through its subsidiaries and related promoter companies as a VIP room gaming promoter in Macau, today announced that it has commenced its previously announced rights offering and filed with the Securities and Exchange Commission (the SEC) the prospectus supplement relating to the rights offering.

The rights offering will expire on June 21, 2013 at 5:00 p.m., New York City time, unless extended. The subscription rights have been admitted for trading on the Nasdaq Global Market under the symbol AERLR. AERL expects the rights can be traded on the Nasdaq Global Market commencing on June 6, 2013 until 4:00 p.m., New York City time, on June 21, 2013, unless the rights offering is extended. AERL intends to use the net proceeds of the rights offering to pay off outstanding indebtedness owed to certain of its shareholders. Sterne, Agee & Leach, Inc. has been appointed dealer manager for the rights offering.

HONG KONG--(BUSINESS WIRE)--Asia Entertainment & Resources Ltd. (�AERL�) (NASDAQ: AERL), which operates through its subsidiaries and related promoter companies that act as VIP room gaming promoters, today announced unaudited Rolling Chip Turnover (as defined below) for the month of May 2013 at the company�s VIP rooms in Macau was US$1.66 billion, up 6% year-over-year, compared to US$1.56 billion for the month of May 2012. This compares with a year-over-year increase in overall gross gaming revenue for Macau of 13% for May 2013. Win rate for the month of May 2013 was 3.52%.

For the first five months of 2013, AERL�s Rolling Chip Turnover was US$7.21 billion (an average of $1.44 billion per month), down 17% year-over-year, compared to US$8.70 billion (an average of $1.74 billion per month) for the first five months of 2012. Macau gross gaming revenue increased 14% for the first five months of 2013.

Rolling Chip Turnover for May 2013 of US$1.66 billion improved 19% compared to the $1.39 billion per month average for the first four months of 2013, and improved 24% compared to the US$1.34 million per month average for the fourth quarter of 2012.

The increase in Rolling Chip Turnover was attributable to an improving VIP gaming market.

The Company�s VIP rooms are primarily focused on high stakes baccarat. Baccarat accounts for approximately 88% of total Macau casino winnings according to the Macau Gaming Inspection and Coordination Bureau (DICJ). In Macau, two remuneration methods are used to compensate VIP room gaming promoters. On a fixed commission basis, VIP room gaming promoter revenues are based on an agreed percentage of Rolling Chip Turnover. On a win/loss split basis, the VIP room gaming promoter receives an agreed percentage of the �win� in the VIP gaming room (plus certain incentive allowances), and is required to also bear the same percentage of losses that might be incurred. Compared to the fixed commission basis, the win/loss split basis subjects the VIP room gaming promoter to the risk of losses from the gaming patron�s activity and greater volatility.

HONG KONG--(BUSINESS WIRE)--Asia Entertainment & Resources Ltd. (NASDAQ: AERL), which operates through its subsidiaries and related promoter companies as a VIP room gaming promoter in Macau, today announced certain terms of the proposed rights offering previously announced on May 24, 2013.

On the payment date, holders of every two outstanding ordinary shares as of the record date will receive a right to purchase one ordinary share at an exercise price of $3.00 per share. In addition, as previously announced, certain persons will agree to purchase any ordinary shares underlying unexercised rights. Messrs. Lam Man Pou, Chairman of AERL, and Vong Hon Kun, Chief Operating Officer of AERL, two of such persons, will agree to purchase approximately 34% of such shares for $4.50 per share, representing a premium to the closing price of AERL�s ordinary shares on May 24, 2013, which was $4.37 per share, and a 50% premium to the exercise price of the rights. Mr. Lam and Mr. Vong will also agree to lock up the ordinary shares purchased from the unexercised rights for a period of two years following the purchase date. The remaining persons who are agreeing to purchase shares underlying unexercised rights will purchase such shares at an exercise price of $3.00 per share. As previously announced, no consideration will be paid to these shareholders for their agreement to purchase the ordinary shares. AERL anticipates launching the rights offering on June 4, 2013.

The offering of the ordinary shares underlying the rights will be made only by means of a prospectus meeting the requirements of the Securities Act of 1933, as amended. This press release does not constitute an offer to sell or the solicitation of an offer to buy ordinary shares, nor shall there be any sale of the ordinary shares in any state or jurisdiction in which such an offer, solicitation or sale would be unlawful prior to registration or qualification under the securities law of any such jurisdiction.

Shareholders should carefully read the prospectus, rights certificate and related materials when they are available because they will contain important information.

HONG KONG--(BUSINESS WIRE)--Asia Entertainment & Resources Ltd. (�AERL�) (NASDAQ: AERL), which operates through its subsidiaries and related promoter companies as a VIP room gaming promoter in Macau, today announced certain terms of the proposed rights offering previously announced on May 24, 2013.

As previously announced, certain persons are expected to agree to purchase any ordinary shares underlying unexercised rights, and Messrs. Lam Man Pou, Chairman of AERL, and Vong Hon Kun, Chief Operating Officer of AERL, will agree to purchase approximately 34% of such shares for an exercise price not less than the closing price of AERL�s ordinary shares on May 24, 2013, which was $4.37 per share, and will be at a premium to the exercise price of the rights. In addition, Mr. Lam and Mr. Vong will agree to lock up the ordinary shares purchased from the unexercised rights for a period of two years following the purchase date. As previously announced, no consideration is expected to be paid to these persons for their agreement to purchase the ordinary shares.

In order to comply with FINRA requirements, AERL cannot announce detailed terms of the offering until Wednesday morning before market, at which time it expects to provide more detailed terms.

The offering of the ordinary shares underlying the rights will be made only by means of a prospectus meeting the requirements of the Securities Act of 1933, as amended. This press release does not constitute an offer to sell or the solicitation of an offer to buy ordinary shares, nor shall there be any sale of the ordinary shares in any state or jurisdiction in which such an offer, solicitation or sale would be unlawful prior to registration or qualification under the securities law of any such jurisdiction.

Shareholders should carefully read the prospectus, rights certificate and related materials when they are available because they will contain important information.

• Net income, including the change in fair value of contingent consideration of $5.9 million related to the King�s Gaming and Bao Li Gaming acquisitions, decreased 55% to $7.0 million, or $0.17 per share (fully diluted), in the first quarter of 2013 from $15.3 million, or $0.38 per share (fully diluted), in the same period of 2012.
• Non-GAAP income, which is operating income before amortization of intangible assets and the change in fair value of contingent consideration related to the acquisitions of King's Gaming and Bao Li Gaming declined 17% to $15.3 million, or $0.38 per share (fully diluted), for the three months ended March 31, 2013 as compared to income of $18.4 million, or $0.43 per share (fully diluted), for the three months ended March 31, 2012.

We continue to manage our business appropriately to reduce exposure to undue risk that can impair longer-term growth, said Mr. Man Pou Lam (Mr. Lam), Chairman of AERL. �We have started to experience stabilization in the VIP gaming market which should have a positive impact on our overall long-term performance. Further, our shift to a revenue sharing model is allowing us to improve our competitiveness in the market, with the ultimate goal of increasing market share leading to growth in revenue and net income. We remain committed to growing our business presence in the Macau VIP gaming market as evidenced by our recent announcement regarding Le Royal Arc Casino and remain committed to creating long-term shareholder value.�

Outlook for 2013

For the first three months of 2013, AERL's Rolling Chip Turnover was $4.08 billion (an average of $1.36 billion per month), down 24% year-over-year, compared to US$5.38 billion (an average of $1.79 billion per month) for the first three months of 2012. Win rate for the first three months of 2013 was 3.29%.

In view of the tightening of credit to junket agents, the Company maintains its Rolling Chip Turnover guidance for its four existing VIP rooms in Macau of $1.5 billion per month in the aggregate (subject to monthly fluctuations), which equates to a total of $18 billion in the aggregate for full year 2013, which is comparable to 2012 results.

The Company believes that for the remainder of 2013, all of its business will remain on a revenue sharing basis. The Company maintains its Non-GAAP income guidance for the year ended December 31, 2013 of $60 million to $75 million based on the current and expected performance of its existing four VIP gaming rooms in Macau, and does not take into consideration any possible future expansion or additional VIP gaming rooms.

HONG KONG--(BUSINESS WIRE)--Asia Entertainment & Resources Ltd. (�AERL�) (NASDAQ: AERL), which operates through its subsidiaries and related promoter companies that act as VIP room gaming promoters, today announced that it has entered into a non-binding memorandum of understanding, whereby it will acquire all of the outstanding interests and operations of the VIP gaming room at Level 1 of Le Royal Arc Casino located in NAPE, Downtown Macau, promoted and operated by Mr. Wong Wing Yim (the �Seller�). The Seller promotes and operates the VIP gaming room which has six tables and is served by at least 500 agents. The VIP gaming room is operated under the Sociedade de Jogos de Macau S.A.�s concession. Subject to due diligence and customary closing conditions, AERL expects to close the transaction by June 30, 2013.

The purchase price to be paid by AERL to the Seller shall be equal to US$20 million in cash, US$10 million of which will be paid upon the closing of the acquisition and the remaining US$10 million to be paid upon the renewal or extension of the existing collaborator agreements to promote the VIP gaming room through at least December 31, 2014.

Additionally, if the Seller and his network of agents achieve a Rolling Chip Turnover of at least US$2.5 billion in each of the twelve-month periods ending June 30, 2014, 2015 and 2016, the Seller would receive three additional purchase consideration installments of US$13 million and 625,000 ordinary shares of AERL. The Seller can receive additional incentives for exceeding these targets. Until June 30, 2016, the Seller shall provide a personal guarantee for any bad loans associated with the Seller�s operations prior to the closing of the acquisition.

Following this transaction, AERL will be able to expand its existing agents network. Upon the closing of the acquisition, AERL will have 40 tables in five VIP rooms.

�We are pleased to have the opportunity to add a VIP room at Le Royal Arc Casino to the Asia Entertainment family, which will enhance our presence in downtown Macau,� said AERL Chairman Lam. �This acquisition will allow us to operate a VIP room under our fourth concessionaire, SJM, which should further expand our competitiveness in the Macau VIP gaming market. In addition, the addition of six more tables should further mitigate volatility from our revenue sharing model, and ultimately provide our shareholders with long-term value.�

HONG KONG--(BUSINESS WIRE)--Asia Entertainment & Resources Ltd.  (NASDAQ: AERL), which operates through its subsidiaries and related promoter companies that act as VIP room gaming promoters, previously announced that its Board of Directors had authorized a regular semi-annual dividend of $0.12 per outstanding ordinary share each year after the release of the Company's financial results for the six months ending June 30, and, for each year after the release of the Company's year-end financial results, an amount per outstanding ordinary share equal to (i) 15% of the Company's non-GAAP net income for the most recently completed fiscal year less the amount paid pursuant to the six month dividend, divided by (ii) the number of ordinary shares outstanding on the record date for such dividend (the Annual Dividend).

The Company today announces that the 2012 Annual Dividend will be $0.1024 per ordinary share. The dividend will be distributed to shareholders of record as of April 16, 2013, and payable on April 26, 2013.

HONG KONG--(BUSINESS WIRE)--Asia Entertainment & Resources Ltd (NASDAQ: AERL), which operates through its subsidiaries and related promoter companies that act as VIP room gaming promoters, today announced unaudited Rolling Chip Turnover (as defined below) for the month of March 2013 at the company's VIP rooms in Macau was US$1.53 billion, down 13% year-over-year, compared to US$1.77 billion for the month of March 2012. This compares with a year-over-year increase in overall gross gaming revenue for Macau of 25% for March 2013. Win rate for the month of March 2013 was 2.19%.

For the first three months of 2013, AERL's Rolling Chip Turnover was US$4.08 billion (an average of $1.36 billion per month), down 24% year-over-year, compared to US$5.38 billion (an average of $1.79 billion per month) for the first three months of 2012. Macau gross gaming revenue increased 15% for the first three months of 2013.

Rolling Chip Turnover for March 2013 improved 19.5% on a sequential basis compared to the $1.28 billion per month average for the first two months of 2013. Furthermore, Rolling Chip Turnover for the fourth quarter of 2012 averaged $1.34 billion per month, further indicating an improving trend from the trailing five month average.

HONG KONG--(BUSINESS WIRE)--Asia Entertainment & Resources Ltd. (�AERL� or the �Company�) (NASDAQ: AERL), which operates through its subsidiaries and related promoter companies as a VIP room gaming promoter, today announced that its Board of Directors has authorized the establishment of a new share repurchase program for the Company to purchase up to four million of its ordinary shares on the open market at prices to be determined by the Company�s management. The program will begin after the release of the Company�s financial results for the year ended December 31, 2012 and expire on December 31, 2013. Purchases pursuant to the program may be made from time to time in accordance with SEC rules and regulations through open market transactions, subject to market conditions, the Company�s share price, and other factors. The repurchase program may be modified, suspended, or discontinued at any time.

Under the Company�s previous share repurchase program, announced on July 31, 2012, the Company repurchased an aggregate of two million of its ordinary shares in the open market, the maximum amount allowed under that program.

HONG KONG--(BUSINESS WIRE)--Asia Entertainment & Resources Ltd. (“AERL”) (NASDAQ: AERL), which operates through its subsidiaries and related promoter companies as a VIP room gaming promoter, today announced unaudited Rolling Chip Turnover (as defined below) for the month of September 2012 at the company’s VIP rooms in Macau was US$1.249 billion, down 34.8% year-over-year, compared to US$1.916 billion for the month of September 2011. This compares with a year-over-year increase in overall gross gaming revenue for Macau of 12.3% for September 2012. Win rate for the month of September 2012 was 3.39%.

For the first nine months of 2012, AERL’s Rolling Chip Turnover was US$14.097 billion (an average of $1.566 billion per month), down 1.8% year-over-year, compared to US$14.357 billion (an average of $1.595 billion per month) for the first nine months of 2011. Overall, Macau gross gaming revenue increased 14.9% for the first nine months of 2012, while Macau VIP revenue growth for the month of September 2012 is believed to be negative versus the same period in 2011.

The decline in Rolling Chip Turnover was attributable to the Company’s self-directed tightening of credit to agents due to the slowing economy in China and the slowdown of business in the last two weeks of September 2012 before the Golden Week holiday, partially offset by a higher-than-average win rate as all AERL VIP rooms are now on a revenue sharing model.

“Our September 2012 results were affected by our internal decision to tighten credit to agents, as the slowdown in growth in China has caused us to be more prudent in extending credit and led to disappointing results,” said AERL Chairman Lam. “We believe the acquisition of our new VIP room at City of Dreams, hopefully with further policy easing by the Chinese government, will lead to higher Rolling Chip Turnover during the rest of the year.”

HONG KONG--(BUSINESS WIRE)--Asia Entertainment & Resources Ltd. (“AERL”) (NASDAQ: AERL), which operates through its subsidiaries and related promoter companies as a VIP room gaming promoter, today announced that, through AERL's wholly-owned subsidiary, it has completed the acquisition of 100% of the profit interest in the operations of Bao Li Gaming Promotion Limited (“BLGP”), a Macau-based VIP room gaming promoter that currently operates one room with five tables at City of Dreams Macau, a Melco Crown property.

The acquisition closed earlier than expected due to the seller satisfying all closing conditions, which were confirmed by AERL’s attorneys on September 12. Also, as a result of the acquisition closing on September 12, and in accordance with the terms of the purchase agreement, AERL has the right to all of the profit interest of BLGP dating back to September 1.

“The addition of this VIP gaming room will enhance our ability to serve our existing customers, and by combining our operations and network of agents with that of Bao Li Gaming, we can further expand our presence in the Macau VIP gaming market, ultimately providing our shareholders with long-term value,” said AERL Chairman Lam.

Second Quarter 2012 Highlights

• Rolling Chip Turnover for the three months ended June 30, 2012 in the Company�s VIP gaming rooms was $4.7 billion, up 8% year-over-year, compared to $4.3 billion in the same period of 2011.
• Net income, which includes a gain of $7.7 million for the change in fair value of contingent consideration related to the acquisition of King�s Gaming, grew 4% to $22.0 million, or $0.52 per share (fully diluted), in the three months ended June 30, 2012, from $21.1 million, or $0.54 per share (fully diluted). in the same period of 2011.
• Non-GAAP income before amortization of intangible assets and the change in fair value of contingent consideration related to the acquisition of King's Gaming was $15.6 million, or $0.37 per share (fully diluted), in the three months ended June 30, 2012 compared to $17.3 million, or $0.44 per share (fully diluted). for the three months ended June 30, 2011.
• On July 31, 2012, the Company announced that its Board of Directors established a new share repurchase program, which will expire on June 30, 2013. The share repurchase program authorizes the Company to purchase up to two million of its ordinary shares on the open market at prices to be determined by the Company�s management.
• On August 1, 2012, the Company announced that beginning on September 1, 2012, the Company would change its remuneration model to a revenue sharing model for all of its VIP rooms. Currently, all AERL rooms are under a fixed commission model of 1.25% of Rolling Chip Turnover.
• On August 6, 2012, the Company announced that it had entered into a non-binding memorandum of understanding whereby it would acquire Bao Li Gaming Promotion Limited (�BLGP�). The Company expects to close the transaction by September 30, 2012.

�For the year, the Chinese economy has experienced a gradual slowing, which caused us to tighten our credit to junket agents, thus affecting our results for the second quarter,� said Mr. Man Pou Lam (Mr. Lam), Chairman of AERL. �We believe that the Chinese government has been implementing policies that should result in renewed economic growth in the latter half of the year, which will allow us to return to a more normal credit policy, leading toward higher Rolling Chip Turnover. In addition, we believe our new revenue sharing model, which becomes effective September 1, will permit us to grow our commission base as a percentage of Rolling Chip Turnover and, with the impending acquisition of BLGP, further grow our Rolling Chip Turnover and help to reduce volatility. We are pleased to have the opportunity to add BLGP to the Asia Entertainment family and remain committed to growing our business presence in the Macau VIP gaming market and create value for our shareholders.�

Outlook for 2012

For the first six months of 2012, AERL's monthly average Rolling Chip Turnover was $1.7 billion. The Company's Rolling Chip Turnover year-to-date through July 31, 2012 in Macau was $11.4 billion, an increase of 7% year-over-year, compared to $10.6 billion for the first seven months of 2011.

Mr. Lam further stated, With the tightening of credit over the past few months, as well the uncertainty facing the world economy and especially the slowing economy in China, we believe it is important to be conservative with our guidance. As such, we are lowering our average monthly Rolling Chip Turnover guidance for 2012 from $2.08 billion per month to a range of $1.67 billion to $1.75 billion per month (subject to monthly fluctuations), which equates to a range of $20 billion to $21 billion for full year 2012. Even with the recent developments, we continue to focus on the fundamentals of our business and continue to strive to achieve our previously stated guidance.�

�We are also lowering our Non-GAAP income guidance for the year ended December 31, 2012 from the original range of $88 million to $95 million to a new range of $68 million to $80 million, concluded Chairman Lam.

HONG KONG--(BUSINESS WIRE)--Asia Entertainment & Resources Ltd. (�AERL� or the �Company�) (NASDAQ: AERL), which operates through its subsidiaries and related promoter companies as a VIP room gaming promoter, today announced that that it has entered into a non-binding memorandum of understanding, whereby it will acquire Bao Li Gaming Promotion Limited (�BLGP�), a Macau-based VIP room gaming promoter that currently operates one room with five tables at City of Dreams Macau, a Melco Crown property. Subject to due diligence and customary closing conditions, Asia Entertainment expects to close the transaction by September 30, 2012.

�We are pleased to have the opportunity to add BLGP to the Asia Entertainment family�

The total upfront consideration for BLGP is expected to be approximately US$15 million for 100% of BLGP�s operations. Additionally, if BLGP�s Rolling Chip Turnover is at least US$2.5 billion in each of the three years ending December 31, 2013, 2014 and 2015, its shareholders would receive three additional purchase consideration installments of US$13 million and 625,000 ordinary shares of AERL. BLGP�s stockholders can receive additional incentives for exceeding these targets. Until December 31, 2015, BLGP�s promoter, Kan Kuong Lou, would provide a personal guarantee for any bad loans associated with BLGP�s operations prior to the closing of the acquisition.

The City of Dreams Casino offers both the fixed commission and the revenue sharing remuneration model, and this VIP room will operate under the revenue sharing model. From this transaction, AERL will be able to expand its existing agents network. Upon the closing of the acquisition, AERL will have 34 tables in four VIP rooms.

�We are pleased to have the opportunity to add BLGP to the Asia Entertainment family,� said AERL Chairman Lam. �In addition to our current presence at the Galaxy and Las Vegas Sands casinos, this acquisition will allow us to expand our presence with another license holder (Melco Crown) in the Macau VIP gaming market, and with five more tables, further mitigate volatility from the revenue sharing model which becomes effective for all our VIP rooms on September 1, and ultimately provide our shareholders with long-term value.�

HONG KONG--(BUSINESS WIRE)--Asia Entertainment & Resources Ltd. (“AERL” or the “Company”) (NASDAQ: AERL), which operates through its subsidiaries and related promoter companies as a VIP room gaming promoter, today announced that beginning on September 1, 2012, the Company will be changing its remuneration model to a revenue sharing model for all of its VIP rooms. Currently, all AERL VIP rooms are under a fixed commission model of 1.25% of Rolling Chip Turnover.

By shifting to a revenue sharing model, under normal circumstances, the Company believes it can generate commission of over 1.30% of Rolling Chip Turnover, and in addition, be able to negotiate on additional allowances and other incentives, thus increasing revenue and ultimately, net income. Furthermore, with a revenue sharing model, the shift opens up the potential for AERL to enter into agreements to establish VIP rooms at other casinos in Macau that do not allow for a fixed commission (i.e., MGM, Wynn and SJM).

”Two years ago, we had only US$45 million in cage capital, which made it prudent to enter into a fixed commission remuneration structure to mitigate our risk,” said AERL Chairman Lam. “Today, with over US$260 million in cage capital and with 29 VIP tables in 3 rooms, we believe the greater volatility surrounding a revenue sharing model is significantly reduced, and with our change to a revenue sharing model, we believe it will allow us to increase revenue, eventually would provide greater value to our shareholders and also enable us to negotiate with additional casinos to open up new VIP rooms.”

HONG KONG--(BUSINESS WIRE)--Asia Entertainment & Resources Ltd. (NASDAQ: AERL), which operates through its subsidiaries and related promoter companies as a VIP room gaming promoter, today announced that its Board of Directors has established a new share repurchase program, which will expire on June 30, 2013. The share repurchase program authorizes the Company to purchase up to two million of its ordinary shares on the open market at prices to be determined by the Company's management. 26,300 shares were purchased under the initial repurchase program.

Purchases pursuant to the program may be made from time to time in accordance with SEC rules and regulations through open market transactions, subject to market conditions, the Company's share price and other factors. Purchases pursuant to the program must also comply with the Company's Insider Trading Policy, which, among other things, prohibits the Company from making any share repurchases except during the period beginning on the third trading day after the Company releases any financial or other material information and ending on the fifteenth calendar day prior to the end of the then current fiscal quarter. The Company is not currently in a Window Period and, as a result, may not make any share repurchases until the third trading day after it announces its financial results for the six-month period ended June 30, 2012, at the earliest. The repurchase program may be modified, suspended or discontinued at any time.

HONG KONG--(BUSINESS WIRE)--Asia Entertainment & Resources Ltd. (“AERL”) (NASDAQ: AERL), which operates through its subsidiaries and related promoter companies as a VIP room gaming promoter, today announced unaudited Rolling Chip Turnover (as defined below) for the month of June 2012 at the company’s three VIP rooms in Macau was US$1.365 billion, down 9% year-over-year, compared to US$1.504 billion for the month of June 2011. This compares with a year-over-year increase in overall gross gaming revenue for Macau of 12% for June 2012.

For the first six months of 2012, AERL’s Rolling Chip Turnover was US$10.066 billion (an average of $1.678 billion per month), up 20% year-over-year, compared to US$8.406 billion (an average of $1.401 billion per month) for the first six months of 2011. Overall, Macau gross gaming revenue increased 20% for the first six months of 2012, while Macau VIP revenue growth for the first six months of 2012 is believed to be in the mid-single digits.

The decline in Rolling Chip Turnover was attributable to a higher-than-expected win rate of 4.08% and lower traffic due to the Euro Cup 2012 soccer tournament, as much of mainland China stays home to watch and wager on the games. At a normalized win rate between 2.85 and 3.00%, AERL’s Rolling Chip Turnover for June 2012 could have been between US$1.954 billion and US$1.856 billion.

“Our June 2012 results were affected both by a higher than normal win rate, as well as the lower VIP visitations due to the popularity of the Euro Cup,” said AERL Chairman Lam. “We expect that we will see stronger Rolling Chip Turnover in July now that the Euro Cup has ended.”

The Company’s VIP rooms are primarily focused on high stakes baccarat. Baccarat accounts for approximately 88% of total Macau casino winnings according to the Macau Gaming Inspection and Coordination Bureau (DICJ). In Macau, two remuneration methods are used to compensate VIP room gaming promoters. On a fixed commission basis, VIP room gaming promoter revenues are based on an agreed percentage of Rolling Chip Turnover. On a win/loss split basis, the VIP room gaming promoter receives an agreed percentage of the “win” in the VIP gaming room (plus certain incentive allowances), and is required to also bear the same percentage of losses that might be incurred. Compared to the fixed commission basis, the win/loss split basis subjects the VIP room gaming promoter to the risk of losses from the gaming patron’s activity and greater volatility.

AERL’s VIP rooms at the Galaxy Star World in Downtown Macau, Venetian Macao-Resort-Hotel and Galaxy Macau™ in Cotai are based on a fixed commission. Because all of AERL’s revenues are now directly related to Rolling Chip Turnover, the Company is concentrating its marketing efforts to increase the number of patrons and the amount of play at its VIP gaming rooms. Consequently, in order to increase the Rolling Chip Turnover, the Company reinvests its earnings to increase the amount of cage capital available to finance the increased patron activity.

For the first five months of 2012, AERL’s Rolling Chip Turnover was US$8.701 billion (an average of $1.740 billion per month), up 26% year-over-year, compared to US$6.902 billion (an average of $1.380 billion per month) for the first five months of 2011. AERL’s growth of 26% year-over-year to date compares favorably to an overall low-teens Macau VIP growth rate during the first five months of 2012. Overall, Macau gross gaming revenue increased 21% for the first five months of 2012.

HONG KONG--(BUSINESS WIRE)--Asia Entertainment & Resources Ltd. (“AERL”) (NASDAQ: AERL), which operates through its subsidiaries and related promoter companies as a VIP room gaming promoter, today announced unaudited Rolling Chip Turnover (as defined below) for the month of May 2012 at the company’s three VIP rooms in Macau was US$1.559 billion, up 14% year-over-year, compared to US$1.362 billion for the month of May 2011. This compares with a year-over-year increase in overall gross gaming revenue for Macau of 7% for May 2012.

The growth in Rolling Chip Turnover was attributable to organic growth and increasing cage capital from retained earnings.

“Although May was a slow month in Macau, we were pleased to once again outpace overall Macau revenue growth,” said AERL Chairman Lam. “We are hopeful that Rolling Chip Turnover growth will pick up during the upcoming months.”

The Company’s VIP rooms are primarily focused on high stakes baccarat. Baccarat accounts for approximately 88% of total Macau casino winnings according to the Macau Gaming Inspection and Coordination Bureau (DICJ). In Macau, two remuneration methods are used to compensate VIP room gaming promoters. On a fixed commission basis, VIP room gaming promoter revenues are based on an agreed percentage of Rolling Chip Turnover. On a win/loss split basis, the VIP room gaming promoter receives an agreed percentage of the “win” in the VIP gaming room (plus certain incentive allowances), and is required to also bear the same percentage of losses that might be incurred. Compared to the fixed commission basis, the win/loss split basis subjects the VIP room gaming promoter to the risk of losses from the gaming patron’s activity and greater volatility.

AERL’s VIP rooms at the Galaxy Star World in Downtown Macau, Venetian Macao-Resort-Hotel and Galaxy Macau™ in Cotai are based on a fixed commission. Because all of AERL’s revenues are now directly related to Rolling Chip Turnover, the Company is concentrating its marketing efforts to increase the number of patrons and the amount of play at its VIP gaming rooms. Consequently, in order to increase the Rolling Chip Turnover, the Company reinvests its earnings to increase the amount of cage capital available to finance the increased patron activity.

Results for First Quarter 2012

• Rolling Chip Turnover for the three months ended March 31, 2012 in the Company�s VIP gaming rooms was $5.4 billion, up 32% year-over-year, compared to $4.1 billion in the same period of 2011.
• Net income, which includes a charge of $1.8 million for the change in fair value of contingent consideration related to the acquisition of King's Gaming, grew 19% to $15.3 million, or $0.36 per share (fully diluted) in the first quarter of 2012 from $12.9 million, or $0.37 per share (fully diluted) in the same period of 2011.
• Non-GAAP income before amortization of intangible assets and the change in fair value of contingent consideration related to the acquisition of King's Gaming was $18.4 million, or $0.43 per share (fully diluted) for the three months ended March 31, 2012, an 11% increase as compared to income of $16.5 million or $0.48 per share (fully diluted) for the three months ended March 31, 2011.

The increase in net income and Non-GAAP income in the period was due primarily to higher revenue generated from increased Rolling Chip Turnover, organic growth, the reinvestment of accumulated earnings, increased lines of credit from the casino license holders, increased shareholder loans for additional cage capital and the opening of the VIP gaming room at the Galaxy Macau� in May 2011.

Mr. Man Pou Lam (Mr. Lam), Chairman of AERL, stated, "We are pleased with our first quarter 2012 performance, which resulted from our ability to increase Rolling Chip Turnover for our VIP gaming rooms and the addition of a VIP room at the Galaxy Macau�. In the first quarter of 2012, AERL generated 31% year-over-year revenue growth, exceeding overall gross gaming revenue growth in Macau of 27% and growth in overall Macau VIP Baccarat of 24%, according to the Macau Gaming Inspection and Coordination Bureau. We continue to expect additional Rolling Chip Turnover and revenue growth in 2012."

Outlook for 2012

For the first three months of 2012, AERL's monthly average Rolling Chip Turnover was $1.8 billion. The Company's Rolling Chip Turnover year-to-date through March 31, 2012 in Macau was $5.4 billion, an increase of 32% year-over-year, compared to $4.1 billion for the first three months of 2011.

Mr. Lam further stated, "We are continuing to forecast double-digit growth in Rolling Chip Turnover for 2012. For the first three months of 2012, our Rolling Chip Turnover growth of 32% exceeded our original guidance of 25% growth. We are maintaining our average monthly Rolling Chip Turnover guidance for our three existing VIP rooms in Macau of $2.08 billion per month (subject to monthly fluctuations), which equates to a total of approximately $24.96 billion for full year 2012, up from $19.93 billion in 2011."

"We believe that for remainder of 2012, all of our revenue will continue to be generated on a fixed commission basis of Rolling Chip Turnover. We remain committed to our Non-GAAP income guidance for the year ended December 31, 2012 of $88 million to $95 million based on the current and expected performance of our existing three VIP gaming rooms in Macau," concluded Chairman Lam.

HONG KONG--(BUSINESS WIRE)--Asia Entertainment & Resources Ltd. (“AERL”) (NASDAQ: AERL), which operates through its subsidiaries and related promoter companies as a VIP room gaming promoter, today announced unaudited Rolling Chip Turnover (as defined below) for the month of December 2011 at the company’s VIP rooms in Macau was US$1.756 billion, up 31% year-over-year compared to US$1.339 billion for the month of December 2010. This compares with a year-over-year increase in gross gaming revenue for Macau of 25% for December 2011.

For 2011, AERL’s Rolling Chip Turnover was US$19.932 billion (an average of $1.661 billion per month), up 91% year-over-year, compared to US$10.423 billion (an average of $869 million per month) for 2010. Macau gross gaming revenue increased 42% for 2011.

“While we are pleased that we continue to outperform the Macau industry figures, December 2011 results were affected by a lower than anticipated chips turnover during the final 10 days of the month for the company as well as Macau in general,” said AERL Chairman Lam. “However, our collection period, or days sales outstanding, remains stable and averages under 30 days. We expect our business would continue to grow in 2012 and generate strong earnings for our shareholders.”

GeoInvesting has come across third party due diligence by Robert Carter on Asia Entertainment (AERL).  The author of the report addresses how and why he expects quarterly EPS to grow through Q4 2013, and what he feels are key catalysts that could accelerate the earnings growth.

The author also goes on to provide documentation which he believes that the company's SEC documents are a true representation of AERL's operations.

http://www.geoinvesting.com/companies/duediligence/aerl_asian_wealth_play_11082011.aspx


Disclaimer: GeoInvesting has no affiliation with Robert Carter in any way, nor has it vetted this information in any way. The GeoTeam does not attest to the accuracy of the information contained in this report and always urges investors to conduct their own due diligence.

Future Sources and Uses of Cash
 
We expect that our future liquidity and capital requirements will be affected by:
 
  · Capital requirements related to future acquisitions; 
  · Cash flow from acquisitions; 
  · Working capital requirements; 
  · Obtaining funds via as a result of the exercise of our warrants by warrantholders; 
  · Raising funds through the private placement of our securities; and 
  · Accumulation of earnings.

HONG KONG--(BUSINESS WIRE)--Asia Entertainment & Resources Ltd. (“AERL” or the “Company”) (NASDAQ: AERL), which operates through its subsidiaries and related promoter companies as a VIP room gaming promoter, today announced that its Board of Directors has authorized a regular semi-annual cash dividend of $0.10 per outstanding ordinary share each year after the release of the Company’s financial results for the six months ending June 30, and, for each year after the release of the Company’s financial results, an amount per outstanding ordinary share equal to (i) 15% of the Company’s non-GAAP net income for the most recently completed fiscal year less the amount paid pursuant to the immediately previous six-month dividend, divided by (ii) the number of ordinary shares outstanding on the record date for such dividend.

“We believe that the Company is adequately capitalized to significantly grow its VIP business over the long-term while at the same time returning capital to shareholders at a meaningful rate”

The record date for each period’s dividend will be set by the Company’s management to be as close as practicable to, but no less than, 15 days after the public release by the Company of the financial results for the applicable six-month period and fiscal year end. The payment date for each period’s dividend will be set by the Company’s management to be as close as practicable to, but no less than, 10 days after the record date. The first dividend will be paid after the release of financial results for the six-month period ended June 30, 2011.

The Company also announced today that its Board of Directors has authorized the establishment of a share repurchase program for the Company to purchase up to two million of its ordinary shares on the open market at prices to be determined by the Company’s management. In order to comply with our insider trading policy, the program will begin after the release of the Company’s financial results for the six-month period ended June 30, 2011 and will expire on June 30, 2012. Purchases pursuant to the program may be made from time to time in accordance with SEC rules and regulations through open market transactions, subject to market conditions, the Company’s share price and other factors. The repurchase program may be modified, suspended or discontinued at any time.

“We believe that the Company is adequately capitalized to significantly grow its VIP business over the long-term while at the same time returning capital to shareholders at a meaningful rate,” said AERL Chairman Lam. “With cage capital expected to exceed $200 million as of June 30, 2011, the Board of Directors believes that we are now in a healthy position to pay a dividend to our shareholders. In addition, the repurchase program further validates our commitment to our shareholders, as we intend to purchase shares of AERL when we believe the market does not adequately reflect the value of our business.”

First Quarter Results:

• Revenue for the three months ended March 31, 2011 was $51.3 million, up 103% from $25.3 million in the same period of 2010.
• GAAP earnings per share ("EPS") for the three months ended March 31, 2011, based on net income after deduction of $2.4 million change in fair value of contingent consideration for the acquisition of King’s Gaming Promotion Limited ("King’s Gaming"), was $0.37 for both basic weighted average shares (approximately 34.6 million) and fully diluted weighted average shares (approximately 35.3 million).
• Non-GAAP income including pre-acquisition profit, before amortization of intangible assets and change in fair value of contingent consideration grew 71% to $16.5 million in the three months ended March 31, 2011 from $9.7 million (including pre-acquisition profit) in the same period of 2010 due to organic growth, an increase in shareholders’ loans, an increase in cage capital related to the additional capital of $35.5 million from warrant exercises, and the addition of the VIP gaming room at the Venetian Macao-Resort-Hotel in connection with the acquisition of King’s Gaming.
• Non-GAAP EPS (basic and diluted) before amortization of intangible assets and the change in the fair value of contingent consideration for the three months ended March 31, 2011 was $0.48.

AERL Chairman Lam stated, "The first quarter of 2011 showed continued strong growth, with another quarter of triple-digit revenue growth, as a result of a significant increase in the Rolling Chip Turnover for our VIP gaming rooms in Macau, as well as the addition of the VIP gaming room at the Venetian Macao-Resort-Hotel in November 2010. For the first quarter of 2011, AERL generated 103% year-over-year revenue growth, exceeding the overall growth in Macau of 43% according to the Macau Gaming Inspection and Coordination Bureau (DICJ), while our Non-GAAP income including pre-acquisition profit, before amortization of intangible assets and change in fair value of contingent consideration increased 71% from the prior-year period. We expect strong organic growth to continue going forward and are very excited about opening our latest VIP room at the Galaxy Macau in Cotai in four days."

"We believe that for 2011, the large majority of the business will be on a fixed commission basis. We are reiterating our Non-GAAP income guidance of $62 million to $68 million for 2011 based on the current performance of our existing three VIP gaming rooms in Macau," concluded Chairman Lam.

Fourth Quarter Results:

• Revenue for the three months and year ended December 31, 2010 was $43.1 million and $127.0 million, respectively, up 102% and 110% from $21.3 million and $60.5 million in the same periods of 2009.
• Income including pre-acquisition profit and before amortization grew 100% to $11.5 million and 145% to $38.1 million, respectively, in the three months and year ended December 31, 2010 from $5.7 million and $15.5 million in the same periods of 2009, due to the shift toward a more commission-based business for 2010, organic growth, an increase in cage capital due to the $35.5 million warrant exercise, and the addition of the VIP gaming room at the Venetian Macao-Resort-Hotel. Of note, the Iao Kun VIP room at the MGM Hotel and Casino had a win rate in 2010 below the normalized win rate of 2.90%. If it had a fixed commission (equivalent to the normal 2.90% win rate) in 2010, the earnings derived from the chips turnover at the VIP room would increase by approximately $3.3 million for the full year 2010.
• Non-GAAP earnings per share (EPS) derived from income including pre-acquisition profit and before amortization for the year ended December 31, 2010 was $2.69, based on a basic weighted average share count of 14,177,408, and $2.17 based on a fully diluted weighted average share count of 17,571,255.

AERL Chairman Lam stated, "2010 was a strong year for our company, with triple-digit revenue growth during the year, primarily due to our ability to increase the Rolling Chip Turnover for our VIP gaming rooms in Macau, as well as the addition of the VIP gaming room at the Venetian Macao-Resort-Hotel in November. For 2010, AERL generated 110% year-over-year revenue growth, exceeding the overall growth in Macau of 58% according to the Macau Gaming Inspection and Coordination Bureau (DICJ), while our income including pre-acquisition profit and before amortization increased 145% from last year. In addition, for 2010, there was approximately $10.4 billion in Rolling Chip Turnover, representing 101% year-over-year growth. We are seeing continued strength thus far in the new year and we expect strong double-digit growth in Rolling Chip Turnover for the full year 2011."

"We believe that for 2011, the large majority of the business will be on a fixed commission basis. We are raising our net income guidance to $62 million to $68 million for 2011 based on the current performance of our existing three VIP gaming rooms in Macau," concluded Chairman Lam.

Asia Entertainment & Resources Ltd. today announced the results of its warrant redemption, which concluded on October 28, 2010. The ordinary share purchase warrants were originally issued by AERL, which was formerly known as CS China Acquisition Corp. (“CS China”), in connection with CS China’s initial public offering in August 2008.

Of the 14,648,000 warrants outstanding and available for exercise, 7,095,790 non-insider warrants were exercised at US$5.00, raising gross proceeds of approximately $35.5 million for AERL, while 3,944,210 non-insider warrants expired unexercised, and the holders of these warrants were paid US$0.01 per warrant upon their extinguishment. 3,608,000 were considered insider warrants, and 3,505,771 of these warrants were submitted for cashless exercise into 1,343,050 shares. Of these new shares, 1,296,976 shares (or approximately 97% of new shares) are restricted until October 28, 2011.

As of October 28, 2010, AERL has ordinary shares issued and outstanding of approximately 21.0 million. The Company intends to use the proceeds from the warrant redemption to continue the expansion of its VIP room gaming business. In addition, AERL is announcing preliminary guidance for 2011. Pending the completion of the acquisition of King’s Gaming Promotion Limited, the VIP room gaming promoter that operates at the Venetian Macao-Resort-Hotel on the Cotai Strip, AERL is expecting 2011 Rolling Chip Turnover of US$1.15 billion per month and full year net income of US$55-60 million.

Note: This guidance works out to EPS about $2.71.

Financial Highlights for the Three and Nine Months Ended September 30, 2010

• Rolling Chip Turnover (a metric used by casinos to measure the aggregate amount of players’ bets and overall volume of VIP gaming room business transacted that is defined below) for the three and nine months ended September 30, 2010 in our two VIP gaming rooms in Macau was $2.4 billion and $6.7 billion, respectively, up 49% and 105% year-over-year, compared to $1.6 billion and $3.3 billion in the same periods of 2009.

• Revenue for the three and nine months ended September 30, 2010 was $28.5 million and $83.9 million, respectively, up 105% and 114% from $13.9 million and $39.2 million in the same periods of 2009.

• Net Income (including pre-acquisition profit) grew 1,847% to $7.3 million and 172% to $26.7 million, respectively, in the three and nine months ended September 30, 2010 from $0.4 million and $9.8 million in the same periods of 2009, due primarily to the shift toward a more commission-based business and the overall low win rate during the quarter ended September 30, 2009.

• Non-GAAP earnings per share (EPS) derived from net income (including pre-acquisition profit) for the nine months ended September 30, 2010 was $2.15, based on a basic weighted average share count of 12,378,633, and $1.24 based on a fully diluted weighted average share count of 21,523,430.

• GAAP EPS for the three and nine months ended September 30, 2010 (based on net income after deduction of $4.3 million pre-acquisition profit) was $0.57 and $1.80, respectively, based upon the basic weighted average share counts of 12,810,908 and 12,378,633, respectively, and $0.40 and $1.04, respectively, based upon fully diluted weighted average share counts of 18,345,903 and 21,523,430, respectively.

AERL Chairman Lam stated, “The third quarter of 2010 was our second consecutive quarter of triple-digit revenue growth, primarily due to our ability to increase the Rolling Chip Turnover for our two VIP gaming rooms in Macau. For the nine months ended September 30, 2010, AERL generated 114% year-over-year revenue growth, exceeding the overall growth in Macau of 60% according to the DICJ, while our income including pre-acquisition profit increased 172% from the same period last year. In addition, for the first nine months of 2010, there was approximately $6.7 billion in Rolling Chip Turnover, representing 105% year-over-year growth. We believe the absolute growth of Rolling Chip Turnover will continue through the remainder of the year; however, monthly year-over-year improvement for the last three months of 2010 could be moderated when measured against the highly successful months during the last quarter of 2009.”

Mr. Lam further stated, "Compared to the previous two quarters, the overall performance of this quarter was below expectations mainly due to the low win rate at the Iao Kun VIP Room at the MGM Grand Hotel and Casino – which was 1.94% for the three months ended September 30, 2010 – and the higher than average commission paid to non-marker agents in July. Assuming the Iao Kun VIP room at the MGM Hotel and Casino had a normal win rate of 2.90%, which is equivalent to the fixed commission of 1.25%, and the commission paid to agents on Rolling Chips Turnover remained at the average rate of 0.74% (year–to-date is 0.74%), earnings for the third quarter 2010 would have increased by approximately $2.1 million which would have resulted in total earnings of approximately $9.3 million for the quarter."

Outlook for 2010

For the first nine months of 2010, AERL’s Rolling Chip Turnover averaged $748 million per month. The Company’s Rolling Chip Turnover year-to-date through September 2010 in Macau was $6.734 billion, an increase of 105% year-over-year, compared to $3.284 billion for 2009.

Chairman Lam further stated, “While the monthly percentage year-over-year growth rates may decline for the remainder of 2010 due to the highly successful last quarter of 2009, we continue to forecast growth. For 2009, the average monthly Rolling Chip Turnover was $433 million. We are maintaining Rolling Chip Turnover guidance for our two existing VIP rooms in Macau to average $700 million to $725 million per month, which equates to a total of $8.4 billion to $8.7 billion for full year 2010, up from $5.19 billion in 2009.”

“We continue to believe that for the remainder of 2010, the majority of the business will be on a fixed commission basis. We are adjusting our income (including pre-acquisition profit) guidance to $36 million to $39 million for 2010 based on the current performance of our existing two VIP gaming rooms in Macau,” concluded Chairman Lam.

Financial Highlights for the Three and Six-months Ended June 30, 2010 

• Rolling Chip Turnover (a metric used by casinos to measure the aggregate amount of players’ bets and overall volume of VIP gaming room business transacted that is defined below) for the three and six-months ended June 30, 2010 in our 2 VIP gaming rooms in Macau was $2.45 billion and $4.34 billion, respectively, up 194% and 160% year-over-year, compared to $831 million and $1.67 billion in the same periods of 2009.
  
• Revenue for the three and six-months ended June 30, 2010 was $30.1 million and $55.4 million, respectively, up 172% and 120% from $11.1 million and $25.2 million in the same periods of 2009.
  
• Income (including pre-acquisition income) grew 176% to $9.5 million and 103% to $19.2 million, respectively, in the three and six-months ended June 30, 2010 from $3.4 million and $9.4 million in the same periods of 2009.
  
• Earnings per share (EPS) derived from income (including pre-acquisition income) for the six-months ended June 30, 2010 was $1.58, based on a basic weighted average share count of 12,158,912, and $1.05 based on a fully diluted weighted average share count of 18,273,664.
  
• GAAP EPS for the three and six-months ended June 30, 2010 (based on net income after deduction of $4.3 million pre-acquisition income) was $0.76 and $1.22, based upon the basic weighted average share counts, and $0.40 and $0.65, based upon fully diluted weighted average share counts.
  
• Total available cage capital at the end of the second quarter was approximately $73.3 million, up 6.2% from $69.0 million the first quarter of 2010.

Outlook for 2010

For the first seven months of 2010, AERL’s Rolling Chip Turnover averaged $745 million per month. Its Rolling Chip Turnover year-to-date through July 2010 in Macau was $5.21 billion, an increase of 150% year-over-year, compared to $2.08 billion for 2009.

Chairman Lam further stated, “While the monthly percentage year-over-year growth rates may decline for the remainder of 2010 due to the highly successful last quarter of 2009, we continue to forecast growth. For 2009, the average monthly Rolling Chip Turnover was $433 million. We are providing Rolling Chip Turnover guidance for our two existing VIP rooms in Macau to average $700 million to $725 million per month, which equate to $8.4 billion to $8.7 billion for the full year 2010, up from $5.19 billion in 2009.

“We continue to believe that for the remainder of 2010, the majority of the business will be on a fixed commission basis.

We are issuing initial income (including pre-acquisition income) guidance of $38 million to $39 million for 2010 based on current performance of our existing 2 VIP gaming rooms in Macau.

“We are delaying our proposed expansion in Jeju, Korea because the continued strength of the Macau VIP gaming market makes it desirable to continue to increase our efforts there. Also, the favorable risk/reward of the commission model in Macau offers more stability than the capital risk of the win/loss split model used in Jeju.”

Asia Entertainment is redeeming its warrants:

"it will be sending out redemption notices to all of the record holders of its issued and outstanding ordinary share purchase warrants, which trade under the ticker symbol AERLF. The final redemption date for the warrants will be October 28, 2010 (the “Redemption Date”). The warrants are currently exercisable. Holders of warrants who have not exercised them by the Redemption Date will be paid $0.01 per warrant, and the warrants will be extinguished.

In accordance with the Warrant Agreement governing the warrants, AERL is entitled to redeem these warrants because the last sales price of its ordinary shares was $8.50 or greater for more than 20 of the trading days within the last 30 day trading period ending on the third business day prior to the notice date of redemption sent to warrant holders of record, and because there is a current and effective registration statement covering the ordinary shares underlying the warrants. The closing price of the AERL’s ordinary shares on June 24, 2010 was $7.50.

The underlying common stock has a wide bid/ask spread that currently stands at $2.25 by $9.60. The warrants have a strike price of $5.00. The arbitrage opportunity that potentially existed with the warrants will evaporate, unless the bid price rises above $5.00 before the redemption date.

Outlook for 2010

For the first five months of 2010, AERL’s Rolling Chip Turnover averaged $729 million per month. Its Rolling Chip Turnover year-to-date through May for 2010 in Macau was $3.65 billion, an increase of 169% year-over-year, compared to $1.36 billion for 2009.

Chairman Lam further stated, “While the monthly percentage year-over-year growth rates may decline for the remainder of 2010 due to the highly successful last quarter of 2009, we continue to forecast growth. For 2009, the average monthly Rolling Chip Turnover was $433 million. We are providing Rolling Chip Turnover guidance for our two existing VIP rooms in Macau to average $700 million to $725 million per month, which equates to $8.4 billion to $8.7 billion for the full year 2010, up from $5.19 billion in 2009.

“We continue to believe that for the remainder of 2010, the majority of the business will be on a fixed commission basis. We are issuing initial pro-forma, non-GAAP net income guidance of $38 million to $39 million for 2010 based on our existing 2 VIP gaming rooms in Macau.

“We are delaying our proposed expansion in Jeju because the continued strength of the Macau VIP gaming market makes it desirable to continue to increase our efforts there. Also, the favorable risk/reward of the commission model in Macau offers more stability than the capital risk of the win/loss split model used in Jeju.”

The GeoTeam® is monitoring the warrants of Hambrecht Asia Acquisition Corp. (OTCBB:HMAQF) and CS China Acquisition Corp. (OTCBB:CSAQF). Both companies have entered into business combination agreements with Asian firms.

We are hoping that the respective warrants will provide similar arbitrage opportunities as TMI and HOL warrants have thus far.

Investors need to be aware of possible amendments that could negatively effect the value of the warrants. One common example is an amendment to increase the warrant exercise price. Also, the arbitrage strategy fails if shareholders do not ultimately approve a business combination within a certain allotted time.

See research note for TMI arbitrage strategy
See research note for HOL arbitrage strategy

Hambrecht Asia Acquisition Details

We have emailed Hambrecht Asia Acquisition Corp. requesting information on its proposed business combination.

Underlying Symbol- AERCF
Warrant Symbol- AERLF

Possible arbitrage strategy if shareholders approve the proposed business combination

Data to be considered:

• Current Price of Common Stock: $7.73
• Current Ask Price of Warrants: $0.55 (warrants have a wide bid/ask spread)
• Strike price of Warrants: $5.00
• Implied intrinsic value of warrants: $7.73 - $5.00= $2.73

Strategy

• Buy the warrants at current price of $0.55.
• If the business combination is completed and the warrants become exercisable then the warrants should approach the implied intrinsic value.
• Profit = (New Value of Warrant, Properly Priced) minus $0.55.

CS China Acquisition Details

Underlying Symbol- CSAQF
Warrant Symbol- CSAXF

Target Firm- Asia Gaming & Resort Limited, (See Release)

Asia Gaming is an investment holding company. The principal business activities of its wholly owned subsidiaries are to hold Profit Agreements with VIP Room gaming promoter companies and to receive 100% of the profit streams from the Promoters. The Promoters currently participate in the promotion of two major luxury VIP gaming facilities in Macau, China, the largest gaming market in the world.

See incentive financial targets.

Possible arbitrage strategy if shareholders approve the proposed business combination

Data to be considered:

• Current Price of Common Stock: $5.70
• Current Ask Price of Warrants: $0.44 (warrants have a wide bid/ask spread)
• Strike price of Warrants: $5.00
• Implied intrinsic value of warrants: $5.70 - $5.00= $0.70

Strategy

• Buy the warrants at current price of $0.44
• If the business combination is completed and the warrants become exercisable then the warrants should approach the implied intrinsic value.
• Profit = (New Value of Warrant, Properly Priced) minus $0.44

CS China currently has 6.9 million common shares outstanding and 14.648 million warrants inclusive of shares and warrants held by management.

CS China will issue 10.35 million shares and 10.35 million warrants at closing. The warrants will have a strike price of $ 6.10 and will be exercisable during the five-year period from their date of issuance but only if AGRL annual U.S. GAAP net incomes exceed US$ 30 million for the fiscal year preceding the date of exercise

Shareholders may earn up to an additional 17.2 million shares of the Company’s common stock, subject to the achievement of the following net income targets:

Source: Business Wire (October 13, 2009)

^a The GeoTeam® calculated implied EPS figures using 21.5 million diluted shares for 2009 as the initial base amount and adding incentive shares in subsequent years assuming net income targets are met. We did this only as a frame of reference as the figures do not take into account the possibility of any future dilutive events. (After the closing of the share exchange, we have calculated that there will be approximately 31.6 million fully diluted ordinary shares outstanding.  We do not use the treasury method in our share calculations. However, doing so would lead to higher EPS numbers. We are contacting management to confirm our share assumptions).