GGRAsia – LT Game, IGT sign distribution agreement

LT Game, IGT sign distribution agreement

Aug 14, 2014 Newsdesk Latest News, Macau, Top of the deck, World

U.S.-based gaming supplier International Game Technology (IGT) and Macau-based casino multi-game manufacturer LT Game Ltd announced on Thursday a three-year distribution agreement for North America and Macau.

Under the terms of the agreement, IGT will distribute LT Game’s live and electronic table game systems in the U.S. and Canada, while LT Game will serve as distributor for IGT’s slot machines in the Macau market, Paradise Entertainment Ltd, the parent company of LT Game, said.

The terms of the agreement specify that IGT will distribute LT Game products on an exclusive basis across North America. IGT is also granted right of first refusal for distribution of LT Game products to Europe, the Caribbean, Mexico, South America and Central America.

In a statement, the companies said the partnership “provides the unique opportunity to leverage existing sales, services and compliance infrastructures to drive revenues from incremental product segments”.

Paradise Entertainment last month said LT Game had received formal written approval from the Nevada Gaming Control Board for installation of its equipment in the Nevada market.

“The agreement unlocks enormous potential for LT Game in the international market and marks a significant milestone in our history,” Jay Chun, chairman and managing director of Paradise Entertainment, said in the statement.

“It signals an important cooperation that will generate synergies for both IGT and LT Game,” he added.

Mr Chun said LT Game is well-positioned to assist IGT in the Macau market, adding that the partnership will enable LT Game “to accelerate its expansion of global presence and distribution”.

The boss of LT Game had told GGRAsia in May that it expects sales to overseas markets to reach 60 percent of the company’s revenue in 2015.

“This alliance is unique to the gaming industry, combining the storied IGT legacy with the market intuition of LT Game to deliver a broader and more relevant product portfolio to our collective customers in North America and Macau,” said Eric Tom, IGT executive vice president of global sales.

IGT announced last month it is being acquired by Italian GTech SpA for a total of US$6.4 billion, comprised of US$4.7 billion in cash and stock, and the assumption of US$1.7 billion in net debt.