he good news is that the figure was up 12.3 % compared to us$ 1.31 billion for July. “Our August 2012 results were affected by our internal decision to tighten credit to agents, as the slowdown in growth in the mainland has caused us to be more prudent in extending credit,” AERL chairman Lam Man Pou was quoted as saying in a press release.
“With our new revenue sharing model now in place [enacted earlier this month], along with further policy easing by the mainland government, we expect to return to our normal credit policy in the near future, which should lead to higher rolling chip turnover during the rest of the year,” Lam said.
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, as well as a higher-than-expected win rate of 3.19%. At a normalized win rate between 2.85% and 3.00%, AERL’s Rolling Chip Turnover for August 2012 could have been between us$ 1.649 billion and us$ 1.566 billion.
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).
AERL promotes three VIP rooms in Macau, at StarWorld, Galaxy Macau and Venetian Macao.