June 20, 2012 – Elray Resources Inc. (ELRA), announced today that it has completed all of its obligations and requirements to acquire the outstanding shares in the Macau gaming company, Golden Match.
Macau Gaming Merger
Golden Match is an investment holding company, who’s principal business activity is to hold a profit share agreement with VIP Room Gaming Promoters, from whom they receive a profit stream. These VIP Room operations are within Major Casino’s in Macau, the largest gaming market in the world. The VIP Room Gaming Operators are duly incorporated under the laws of the Special Administrative Region of Macau and promotes Casinos in Macau SAR, pursuant to a license issued by the Gaming Inspection and Coordination of Bureau of the Government of Macau (DICJ).
Elray has now met all conditions with respect to its recent “Public Stock for Private Acquisition Agreement”, dated May 4th 2012 (the “Purchase Agreement“) The completion of the conditions of the transaction by Elray now positions the company to take advantage of the explosive growth in Macau gaming and continue its growth.
VIP gaming operations in Macau consist of VIP rooms that offer exclusively high-limit baccarat table games. Baccarat is the largest source of gaming revenue in Macao. The Promoters secure VIP rooms through agreements in which they receive either a commission on turnover or a split of the casino net gaming win or loss on a pre-gaming tax basis. Gaming Promoters in Macau have historically maintained the majority of VIP customer relationships.
Macau is part of the territory of the Peoples Republic of China, located on China’s southeast coast to the west of the Pearl River delta. The Macau Special Administrative Region (“MSAR”) was established on December 20, 1999, after Macau was administrated by Portugal for more than 400 years.
Macau is one of the most rapidly growing economies in Asia and is the only territory within China where casino operations has been legalized. In 2011, total revenues generated by casinos in Macau were approximately $33.5 billion, more than four times the revenues generated by the Las Vegas strip during the same period (source:Macau Gaming Inspection and Coordination Bureau). The Macau gaming industry has grown at an average of 37.5% per annum over the last 5 years. (2007 to 2011, source: Macau Statistics and Census Bureau) Read the rest of this entry »