LINUF LiNiu Technology Group (CE)

Iao Kun Group Holding Company Limited (“IKGH” or the “Company”) (NASDAQ:IKGH), which operates through its subsidiaries and related promotion entities that act as VIP room gaming promoters, today announced that after a further assessment by management of the collectability of markers receivable as of June 30, 2016, the Company believes there are approximately $21.5 million in markers receivable at an elevated risk of collectability. Accordingly, the Company is revising its unaudited financial results for the three and six months ended June 30, 2016 to include a non-cash $21.5 million provision for doubtful accounts.

As a result of the revision, net loss for the second quarter of 2016 is now reported to be $125.8 million, or $1.99 net loss per share (basic and diluted), compared to net loss of $23.8 million, or $0.38 net loss per share (basic and diluted), for the same period of 2015. The net loss in the second quarter of 2016 also includes a one-time $97.3 million impairment of intangible assets, while during the second quarter of 2015, IKGH incurred a one-time $17.8 million impairment of goodwill. Previously, net loss for the second quarter of 2016 was reported to be $104.4 million, or $1.65 net loss per share (basic and diluted).

In addition, net loss for the six months ended June 30, 2016 is now reported to be $129.3 million, or $2.05 net loss per share (basic and diluted), compared to net loss of $6.7 million, or $0.11 net loss per share (basic and diluted), for the same period of 2015. Previously, net loss for the six months ended June 30, 2016 was reported to be $107.9 million, or $1.71 net loss per share (basic and diluted).

There is no change to non-GAAP loss, defined as operating loss before amortization of intangible assets, impairment of goodwill and intangible assets, provision for doubtful accounts and the change in fair value of contingent consideration related to the acquisitions of King’s Gaming, Bao Li Gaming and Oriental VIP Room, for the three and six months ended June 30, 2016.

Please refer to the Form 6-K that will be filed with the Securities and Exchange Commission for the revised full unaudited financial statements and related disclosures for the three and six months ended June 30, 2016.

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.

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.

          IAO KUN GROUP HOLDING COMPANY LIMITED REVISED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS (Unaudited)   For the Three Months For the Three Months For the Six Months For the Six Months Ended Ended Ended Ended June 30, 2016 June 30, 2015 June 30, 2016 June 30, 2015 Revenue from VIP Gaming Operations $ 10,578,785   $ 21,869,783   $ 28,500,970   $ 63,571,015   Total Revenues   10,578,785     21,869,783     28,500,970     63,571,015     Expenses - Commission to Junket Agents 9,035,121 19,253,556

22,760,102

47,251,688

- Selling, General and Administrative Expenses 4,472,369 4,644,627

7,973,559

10,036,683

- Special Rolling Tax 86,007 173,698 205,836 393,263 - Impairment of Goodwill -

17,754,136

- 17,754,136 - Amortization of Intangible Assets 4,064,631 4,092,683

8,136,369

8,183,361

- Impairment of Intangible Assets 97,279,517 -

97,279,517

-

-Provision for Doubtful Accounts   21,461,434     -     21,461,434     -   Total Expenses   136,399,079     45,918,700     157,816,817     83,619,131     Operating loss attributable to ordinary shareholders before change in fair value of contingent consideration (125,820,294 ) (24,048,917 ) (129,315,847 ) (20,048,116 )   Change in Fair Value of Contingent Consideration for the Acquisitions of King's Gaming, Bao Li Gaming and Oriental VIP Room   -     244,129     -     13,325,814   Net Loss Attributable to Ordinary Shareholders   (125,820,294 )   (23,804,788 )   (129,315,847 )   (6,722,302 )   Other Comprehensive Income (loss) Foreign Currency - Translation Adjustment   (189,762 )   35,828     (374,176 )   52,991   Total Comprehensive Loss $ (126,010,056 ) $ (23,768,960 ) $ (129,690,023 ) $ (6,669,311 )   Net Loss Per Share Basic $ (1.99 ) $ (0.38 ) $ (2.05 ) $ (0.11 ) Diluted $ (1.99 ) $ (0.38 ) $ (2.05 ) $ (0.11 ) Weighted Average Shares Outstanding Basic   63,103,781     62,150,102     63,103,781     61,871,123   Diluted   63,103,781     62,150,102     63,103,781     61,871,123      

IAO KUN GROUP HOLDING COMPANY LIMITED

REVISED CONSOLIDATED BALANCE SHEETS       June 30, 2016 December 31, 2015 (Unaudited) ASSETS CURRENT ASSETS Cash and Cash Equivalents $ 5,658,773 $ 3,052,694 Accounts Receivable, Net 906,590 1,460,251 Markers Receivable (net of allowance for doubtful accounts of $21,461,434 and $0 at June 30, 2016 and December 31, 2015, respectively) 137,829,757 170,892,037 Prepaid Expenses and Other Assets   1,520,251     1,448,155 Total Current Assets 145,915,371 176,853,137   Intangible Assets, net - 105,645,737 Property and Equipment (net of accumulated depreciation of $191,897 and $169,798 at June 30, 2016 and December 31, 2015, respectively)   187,890     241,927 TOTAL ASSETS $ 146,103,261   $ 282,740,801   LIABILITIES AND SHAREHOLDERS' EQUITY CURRENT LIABILITIES Lines of Credit Payable $ 35,955,925 $ 41,908,984 Accrued Expenses 3,654,553 6,030,996 Dividend payable 499,630 - Bao Li Gaming Acquisition-Purchase Price Obligation 14,228,500 14,228,500 Loan Payable, Shareholders, current   4,009,569     2,827,584 Total Current Liabilities 58,348,177 64,996,064     Total Liabilities   58,348,177     64,996,064   COMMITMENTS AND CONTINGENCIES   SHAREHOLDERS' EQUITY Preferred Shares, $0.0001 par value Authorized 1,150,000 shares; none issued - -

Ordinary Shares, $0.0001 par value,Authorized 500,000,000 shares; 62,453,774 and 62,307,794 issued and outstanding at June 30, 2016 and December 31, 2015, respectively.

6,245 6,230 Additional Paid-in Capital 133,436,640 133,236,655 Retained (Deficit) Earnings (45,954,230 ) 83,861,247 Accumulated Other Comprehensive Income   266,429     640,605 Total Shareholders' Equity   87,755,084     217,744,737 TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY $ 146,103,261   $ 282,740,801  

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Iao Kun Group Holding Company LimitedJames Preissler, +1 646-450-8808preissj@ikghcl.com