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, will be closing its VIP operation at the MGM Macau.
Following a mutual agreement by AERL and MGM Macau, the Company will discontinue its business within MGM Macau on June 15, 2011. The MGM VIP room is on a win/loss sharing remuneration method and accounts for only a small percentage of AERL's total monthly rolling chips turnover. The closure will eliminate the risk to the earnings volatility associated with the win/loss sharing compensation model, and will enable the company to better allocate resources - both human and cage capital - to its three fixed-rate commission VIP rooms.
"We have enjoyed a very successful relationship with MGM Macau and are grateful for its support over the past several years," said AERL Chairman Lam. "However, we have decided to cease our cooperation because our businesses are moving in different directions. We are open to and look forward to working with MGM Macau in the future."
About Asia Entertainment & Resources Ltd.
AERL, formerly known as CS China Acquisition Corp., acquired Asia Gaming & Resort Limited ("AGRL") on February 2, 2010. AERL is an investment holding company which operates through its subsidiaries and related promoter companies as a VIP room gaming promoter, and is entitled to receive all of the profits of the VIP gaming promoters from VIP gaming rooms. AERL's VIP room gaming promoters currently participate in the promotion of three major luxury VIP gaming facilities in Macau, China, the largest gaming market in the world. One VIP gaming room is located at the top-tier in the luxury 5-star hotel, the Star World Hotel & Casino in downtown Macau, and another is located in the luxury 5-star hotel, the Galaxy MacauTM Resort in Cotai, both of which are operated by Galaxy Casino, S.A. The third VIP gaming room is located at the Venetian Macao-Resort-Hotel in Cotai.
Forward Looking Statements
This press release includes forward-looking statements made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995 that involve risks and uncertainties. Forward looking statements are statements that are not historical facts. Such forward-looking statements, based upon the current beliefs and expectations of AERL's management, are subject to risks and uncertainties, which could cause actual results to differ from the forward looking statements.
Contacts
Asia Entertainment & Resources Ltd.
James Preissler, 646-450-8808
preissj@aerlf.com
or
ICR
William Schmitt, 203-682-8294
william.schmitt@icrinc.com