US gaming supplier International Game Technology (IGT) has joined forces with Paradise Entertainment subsidiary LT Game in a deal which will see both companies’ respective product offerings distributed to customers in North America and Macau.
The three-year deal will see IGT distribute LT Game's live and electronic table game systems in the US and Canada, while LT Game will serve as distributor for IGT's slot machines in Macau.
The companies said that the partnership provides the “unique opportunity to leverage existing sales, service and compliance infrastructures to drive revenues from incremental product segments”, as IGT and LT Game each seek to expand their global market share and product portfolio.
“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. “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.”
The terms of the agreement specify that IGT will distribute LT Game products on an exclusive basis across jurisdictions in the US and Canada. IGT is also granted right of first refusal for distribution of LT Games to Europe, the Caribbean, Mexico, South America and Central America.
“The agreement unlocks enormous potential for LT Game in the international market and marks a significant milestone in our history,” said Jay Chun, chairman and managing director of Hong Kong-based Paradise Entertainment. “It signals an important cooperation that will generate synergies for both IGT and LT Game.
“As a market leader in Macau, LT Game is well-positioned to assist IGT in their penetration in the domestic Macau market. Conversely, I believe the collaboration with IGT will enable LT Game to accelerate its expansion of global presence and distribution."
Shares in International Game Technology (Co. Data) (NYSE:IGT) closed Friday at $16.81 per share in New York, while shares in Paradise Entertainment Limited (HKG:1180) fell 6.11 per cent to HK$5.07 per share in Hong Kong earlier today.