The deal with Iao Kun Group Holding Co. Ltd has been completed, allowing it to develop casino junket operations at Crown Melbourne Casino and Crown Perth Casino in Australia.
In a press release Friday, Iao Kun announced that it had achieved both profits for one of the company's executives who signed junket agreements with Crown Perth and Crown Melbourne.
Iao Kun is a mid-sized investor in Macau junket operations targeting VIP players. The operation benefits from the economic movement of several VIP rooms and various Macau casino resorts. One resort is City of Dreams Macao. The casino is managed and owned by Melco Crown Entertainment Ltd. One of City of Dreams Macao's controlling shareholders is Crown Resorts, which has a 33.8% stake.
VIP game revenue is critical to the revenue of casino operations. The Iao Kun company recently underwent a restructuring before announcing that its business in Macau was struggling. Casino revenue fell sharply there, along with rolling chip or VIP revenue. Iao Kun Plunges Year-On-Year At 71% Of Rolling Chip Revenue In April.