Galaxy Entertainment Group has announced it will seek legal redress against the Iao Kun Group for “breach of its undertakings and agreements” as a VIP room operator for the Macau casino company, according to a news release issued by the company.
According to the Macau Business Daily, in the same statement GEG said it wants to “put the record straight” about the recent closure of two VIP rooms operated by the Iao Kun Group within its properties. It said it “terminated the promoter agreements with Iao Kun and closed Iao Kun VIP Rooms in Galaxy Macau and StarWorld as a result of Iao Kun’s breach of the agreements made with us.”
Meanwhile, Iao Kun Group insists that it left the properties as part of a “comprehensive strategic review” of its operations in the territory, and will save $4 million per year as a result. The firm said it is taking “additional action to reduce its operating expenses and preserve its capital position in due course.”
Iao Kun also announced it is no longer in compliance with the minimum bid price requirement of $1 per share required by Nasdaq, reported the Asia Gaming Brief. The junket received written notice from the Nasdaq saying it has 180 days to come into compliance and be reinstated.
The firm, which still offers VIP services at City Of Dreams Macau and the Casino Le Royal Arc, recently reported a 75 percent drop year-on-year in unaudited August rolling chip turnover to approximately $110 million, its 23rd consecutive month of such declines.
