Amax Entertainment Holdings Limited (HKSE: 0959) announced that its partnership with Crown Macau to deliver VIP rolling chip volume through its indirect effective 80% interest in AMA International Limited remains solid.
Mr. Ted Chan, Chief Executive Officer of Amax, commented, "We deny the rumors that AMA is leaving Crown Macau."
Definition of Rolling Chip Volume
VIP Rolling Chip Turnover is used by casinos to measure the volume of VIP business transacted and represents the aggregate amount of bets players make. Bets are wagered with 'non-negotiable chips' and winning bets are paid out by casinos in so-called 'cash' chips. 'Non-negotiable chips' are specifically designed for VIP players to allow casinos to calculate the commission payable to junket operators. Junket commissions are paid based on the total amount of 'non-negotiable chips' purchased by each player. Junkets therefore require the players to 'roll,' from time to time, their 'cash chips' into 'non-negotiable' chips for further betting so that they may receive their commissions (hence the term 'Rolling Chip Turnover'). Through the junket operators, 'non-negotiable chips' can be converted back into cash at any time. Betting using rolling chips, as opposed to using cash chips, is also used by the DICJ (Macau Gaming Control Board) to distinguish between VIP table revenue and mass market table revenue.
About Amax Entertainment Holdings Limited (HKSE: 0959)
Listed on the Main Board of the Hong Kong Stock Exchange, Amax Entertainment Holdings Limited ('Amax) is principally engaged in gaming and entertainment business in Macau. Amax conducts its casino operation in Macau via its 49.9%-owned Greek Methodology Macau Entertainment Group Corporation Limited and late in 2007 entered into gaming promotion business in Macau via AMA International Limited ('AMA') in which it has an indirect 80% interest. The gaming promotion operation is expected to emerge as the Company's primary source of earnings.
About AMA International Limited ('AMA')
AMA is a gaming intermediary aggregating the junket business of junket operators (the 'collaborators') and refers such business to casinos. AMA receives commissions from these casinos based on VIP rolling chip turnover. It in turn pays a commission rate ranging between 0.90% and 1.21% to its collaborators.
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