Iao Kun Group Holding Company Limited Provides Update on Strategic Initiatives

Closes VIP Gaming Room at Le Royal Arc Casino, Expects to Generate
Annual Savings of US$750,000

Announces Lapse of Purchase Agreement for Jeju Sun Hotel & Casino

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, today announced that as part of its
comprehensive strategic review of its VIP gaming room operations in
Macau, it has closed its VIP gaming room at Le Royal Arc Casino,
effective September 29, and terminated its collaborator agreement with
Mr. Lee Wai Man relating to the facility. IKGH believes the closure of
the facility will generate additional annual overall savings of
approximately US$750,000.

In addition, IKGH announced today that the purchase agreement for the
proposed acquisition of Jeju Sun Hotel & Casino has lapsed.

IKGH has been focusing its efforts in this month on the collection of
its outstanding markers receivable and expects to continue those efforts
in the near-term to pay down its line of credit owed to the license
operators. Consequently, and because of the lengthening and difficulty
of collecting markers receivable, the Company will not be actively
extending credit to its clients during this period and therefore it
expects business volume to be minimal.

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 is
entitled to receive all of the profits of the VIP gaming promoters from
VIP gaming rooms. IKGH’s VIP room gaming promoters currently participate
in the promotion of a VIP gaming room at the City of Dreams Macau in
Cotai. IKGH, through its subsidiaries, also acts as junket operator for
Australian casinos (Crown Perth Casino in Perth, Australia and the Crown
Melbourne Casino in Melbourne, Australia) as it seeks to expand to
additional overseas markets.

Contacts

Iao Kun Group Holding Company Limited
James Preissler, 646-450-8808
preissj@ikghcl.com