his compares with a year-over-year increase in overall gross gaming revenue for Macau of 1.5% for July 2012.
For the first seven months of 2012, AERL's Rolling Chip Turnover was US$11.377 billion (an average of us$ 1.625 billion per month), up 7.1% year-over-year, compared to US$ 10.618 billion (an average of us$ 1.517 billion per month) for the first seven months of 2011. Overall, Macau gross gaming revenue increased 16.8% for the first seven months of 2012, while Macau VIP revenue growth for the month of July 2012 is believed to be negative versus the same period in 2011.
The decline in Rolling Chip Turnover was attributable to several factors including a one-time cash player that contributed almost US$ 200 million in RCT in July 2011, five full weekends in July 2011 versus July 2012, severe (typhoon and rainstorm) weather in Macau and Mainland China which affected visitations to our VIP rooms and the Company's self-directed tightening of credit to agents due to the slowing economy in China.
"Our July 2012 results were affected by both external factors out of our control as well as 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," said AERL Chairman Lam. "Further policy easings by the Chinese government should allow AERL to return to normal credit policy in the near future, which would lead to higher Rolling Chip Turnover during the rest of the year."
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(TM) in Cotai are based on a fixed commission until September 1, at which time AERL will change its remuneration model to a revenue sharing model for all of its VIP rooms.