Paradise Entertainment and International Game Technology are joining forces in a three-year agreement to distribute their games and systems in Macau and North America.
Paradise (HKSE: 1180), parent of LT Game, the monopoly supplier to Macau’s lucrative live-dealer e-table market, and US-based slot giant IGT (NYSE: IGT), termed the partnership a “unique opportunity” for both to grow their “global market share and product portfolio”.
The agreement establishes IGT as the exclusive distributor of LT’s popular live and electronic table games in the United States and Canada, with an added right of first refusal for distribution in Mexico, Central and South America, the Caribbean and Europe. LT, in turn, will distribute IGT’s slots and systems in Macau.
Paradise Chairman and Managing Director Jay Chun said the goal for LT Game, which is already licensed in Nevada, is “to accelerate the expansion of its global presence and distribution”.
“The agreement unlocks enormous potential for LT Game in the international market and marks a significant milestone in our history,” he said. “It signals an important cooperation that will generate synergies for both IGT and LT Game.”
IGT’s reputation in North America and vast network of licenses and approvals is expected to prove instrumental to LT’s strategy. At the same time, IGT is grappling with weak sales in a slowing US casino market post-recession, a trend that’s impacting the entire manufacturing sector, spurring a wave of mergers that resulted recently in IGT’s acquisition by lottery giant GTECH for $6.4 billion and the consolidation of Bally Technologies, WMS Industries and SHFL Entertainment under the banner of GTECH rival Scientific Games.
“As a market leader in Macau, LT Game is well-positioned to assist IGT in their penetration in the domestic Macau market,” Mr Chun said.
Eric Tom, executive vice president of Global Sales for IGT, described the partnership as “unique,” and he hailed LT for its “market intuition”.
“We will work alongside our partner, LT Game, in both markets to ensure that an exemplary level of customer care is maintained, while we also continue our direct sales and support for systems products in Macau,” he said.
