A 12-month “supply framework agreement” has reportedly been inked by Hong Kong-headquartered casino equipment maker and gaming services provider, Paradise Entertainment Ltd. (SEHK: 1180) with brother-in-law of the chairman and managing director of the firm, Jay Chun (pictured below right).
According to GGRAsia…
In a Friday filing, Paradise said…
“On December 14, 2018, the company entered into the supply framework agreement with Linyi Feng for the sales of the products to the buyers for a term of one year commencing from January 1, 2019 and ending on December 31, 2019.
“Pursuant to the supply framework agreement, the company shall supply (by itself or procure other members of the group to supply) the products to the buyers for the buyers’ development, manufacture, sale, marketing and distribution (where applicable) of electronic gaming products in the markets including but not limited to the United States, Canada, and Australia and elsewhere in accordance with the laws and regulations of the relevant jurisdictions on a non-exclusive basis,” the document reportedly stated.
The provider added, “The total transaction amount for the term shall not be more than HK$40 million [US$5.1 million].”
The firm additionally stated that the products to be supplied under the agreement would be priced at a discount of 8 percent to 10 percent from its suggested retail prices and would be “no more favorable than those pricing discounts offered to other independent third parties by the group for similar model and size of order of the products.”
In April 2016, Paradise reportedly agreed to the transfer of all of its intellectual property including patents, electronic table game technology, etc., to multinational gaming company, International Game Technology Plc (IGT:New York), with the exception of any and all table game intellectual property utilized exclusively in Macau. That deal was not referenced by Paradise Entertainment’s latest filing.
In August 2014, Paradise Entertainment reportedly announced a three-year distribution deal with the London-headquartered company. Under the terms of that deal, IGT agreed that it would distribute LT Game’s electronic and live table game systems in Canada and the United States, according to the news portal.
LT Game brand:
Under the LT Game brand, Paradise develops, supplies and sells electronic gaming systems internationally, as well as in Macau. Popular with Asian players, the LGM product features electronic betting and bet settlement but with a live dealer.
Feng, according to the latest filing, is also a director of various subsidiaries of Paradise Entertainment.
Earlier this year, Paradise Entertainment announced that it had deployed a total of 267 of its Live Multi Game (LMG) terminals at two Macau casinos, with 50 to be installed at SJM Holdings Ltd-owned and operated casino, L’ Arc Macau, and 217 at MGM China Holdings Ltd.’s second integrated casino, hotel and entertainment complex in Macau, MGM Cotai.