Iao Kun Group Holding Company Limited Announces Strategic Macau Restructuring Initiatives

Closes VIP Gaming Room at Sands Cotai Central, Expects to Generate
Annual Savings of US$750,000

HONG KONG–(BUSINESS WIRE)–Iao Kun Group Holding Company Limited (“IKGH”) (NASDAQ:IKGH), which
operates through its subsidiaries and related promotion entities that
act as VIP room gaming promoters and a collaborator, today announced
that it is undertaking a comprehensive strategic review of its VIP
gaming room operations in Macau due to the ongoing challenging VIP
gaming environment and to enhance its operating performance.

As an initial cost-cutting measure, IKGH has closed its VIP gaming room
at the Sands Cotai Central Casino in Macau, effective August 31, and
terminated its agreement with King’s Gaming Promotion Ltd. relating to
that facility, as the current Rolling Chip Turnover volume does not
warrant the operation of five VIP gaming rooms. IKGH believes the
closure of the facility will generate annual overall savings of
approximately US$750,000.

In addition, upon the completion of its strategic review, IKGH may
further close an additional 1-2 VIP gaming rooms in order to further
optimize its operating earnings. IKGH will provide details with respect
to any additional expense reductions in due course.

“Given the lack of recovery in the VIP market in Macau and our
expectations that this will continue for the foreseeable future, we are
currently reviewing our overall operations in Macau in order to ensure
their sustainability,” said Mr. Lam Man Pou, Chairman of IKGH. “We
expect to take further prudent actions that we believe will be accretive
to our earnings per share and to ensure the preservation of our capital
as we continue to seek to generate long-term value for our shareholders.”

Forward-Looking Statements

This press release includes forward-looking statements made pursuant to
the safe harbor provisions of the Private Securities Litigation Reform
Act of 1995 that involve risks and uncertainties. Forward-looking
statements are statements that are not historical facts. Such
forward-looking statements, based upon the current beliefs and
expectations of IKGH’s management, are subject to risks and
uncertainties, which could cause actual results to differ from the
forward-looking statements. The gaming industry is characterized by an
element of chance. Theoretical win rates for IKGH’s promotion entities’
VIP gaming room operations depend on a variety of factors, some beyond
their control. In addition to the element of chance, theoretical win
rates are also affected by other factors, including gaming patrons’
skill and experience, the mix of games played, the financial resources
of gaming patrons, the spread of table limits, the volume of bets placed
by IKGH’s promotion entities’ gaming patrons and the amount of time
gaming patrons spend on gambling — thus VIP gaming rooms’ actual win
rates may differ greatly over short time periods, such as from quarter
to quarter, and could cause their quarterly results to be volatile.
These factors, alone or in combination, have the potential to negatively
impact the VIP gaming rooms’ win rates. Investors and potential
investors should consult all of the information set forth herein and
should also refer to the risk factors set forth in IKGH’s Annual Report
on Form 20-F filed in March 2016, and other reports filed or to be filed
from time-to-time with the Securities and Exchange Commission.

About Iao Kun Group Holding Company Limited

IKGH is a holding company which operates through its subsidiaries and
related promotion entities that act as VIP room gaming promoters and a
collaborator, and is entitled to receive all of the profits of the VIP
gaming promoters and a collaborator from VIP gaming rooms. IKGH’s VIP
room gaming promoters and collaborator currently participate in the
promotion of four major luxury VIP gaming facilities in Macau, China,
the largest gaming market in the world. One VIP gaming room is located
at the top-tier 5-star hotel, the StarWorld Hotel & Casino in
downtown Macau, and another is located in the luxury 5-star hotel, the
Galaxy Macau™ Resort in Cotai, each of which is operated by Galaxy
Casino, S.A. Additional VIP gaming rooms are located at the City of
Dreams Macau in Cotai and Le Royal Arc Casino, located in NAPE, Downtown
Macau. IKGH started trial operations to the Australian casinos (Crown
Perth Casino in Perth, Australia and the Crown Melbourne Casino in
Melbourne, Australia) to gain a greater understanding of the preferences
of its junket agents and VIP players and the logistics of the market.

Contacts

Iao Kun Group Holding Company Limited
Ryan Yip, +853 2782 3425
ryany@ikghcl.com