HONG KONG--(BUSINESS WIRE)--
Entertainment Gaming Asia Inc. (EGT) (“Entertainment Gaming Asia” or “the Company”), a leading gaming company focused on emerging gaming markets in Pan-Asia, announced today agreements with gaming equipment supplier LT Game Limited (“LTG”), a leading supplier of electronic multi-game machines and equipment in Macau and the Asia Pacific region. These agreements serve to help facilitate the refocusing of the Company’s Dreamworld Pailin casino operations in Cambodia and enhance the offerings for its gaming products division.
As part of its previously-announced efforts to refocus its operations and streamline costs for Dreamworld Pailin casino in Cambodia, the Company entered into a machine participation agreement with LTG who will supply, install and provide maintenance for 30 electronic gaming machine seats on a revenue sharing basis. The LTG gaming offering will consist of semi-live electronic baccarat and roulette table games. Under the terms of this agreement, Dreamworld Pailin and LTG will share in the gross net win before tax from these machines on an 85%/15% respective basis. The contract term is five years commencing with the live operation of the machines, which is expected to occur in October.
In addition, the Company has signed a distribution agreement with LTG which grants the Company the exclusive right to market and sell LTG gaming products to designated casinos and gaming venues within Cambodia, Vietnam and the Philippines. The initial duration of the agreement is six months in Cambodia and Vietnam and one year in the Philippines. Subject to the achievement of certain sales targets, the Company is entitled to renew the agreement for successive one year periods under the same terms.
Clarence Chung, Chairman and Chief Executive Officer of Entertainment Gaming Asia, commented, “We are delighted to be able to offer the LTG range of products in our markets and expand our gaming product mix beyond our extensive line of Dolphin gaming chips and plaques. We are excited about the potential derived from combining our market knowledge, relationships and resources with LTG’s innovative gaming products. With the ability to fully leverage our relationships and existing infrastructure in both Indo-China and the Philippines, this agreement provides the opportunity for incremental revenue, which should directly impact the bottom line.”
Jay Chun, Chairman of LTG added, “We are pleased to work with Entertainment Gaming Asia. With their relationships and market presence, they are a natural fit for our expansion efforts. We look forward to building on the success we have experienced in Macau in these new markets.”
About Entertainment Gaming Asia Inc.
Entertainment Gaming Asia Inc. (EGT) is a leading gaming company in Pan-Asia engaged in the development and operation of casinos and gaming venues in the Indo-China region under its “Dreamworld” brand as well as the leasing of electronic gaming machines on a revenue sharing basis to the gaming industry. The Company also manufactures, sells and distributes gaming products, including RFID and traditional gaming chips and plaques to major casinos under its “Dolphin” brand. For more information please visit www.EGT-Group.com.
About LT Game Limited
LT Game Limited is one of the leading suppliers of electronic multi-game machines and equipment in Macau and the Asia Pacific region. Some of its innovative products include the Live Table Multi-Gaming System, which has a live dealer, supports multiple tables and has a terminal-based multi-game selection system, and the Paradise Jackpot System, a baccarat side-bet progressive jackpot, both have been patented in Macau and the United States. LT Game Limited is based in Macau and is a majority subsidiary of Paradise Entertainment Limited listed on The Stock Exchange of Hong Kong Limited (1180.HK). For more information please visit www.ltgame.net.
This press release contains forward-looking statements concerning Entertainment Gaming Asia within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Those forward-looking statements include statements regarding expectations for the earnings potential of LT Game Limited products in Dreamworld casino in Pailin, the Company’s ability to achieve certain sales targets for LT Game Limited products in its designated markets and growth of the gaming industry in the Indo-China region and the Philippines. Such statements are subject to certain risks and uncertainties, and actual circumstances, events or results may differ materially from those projected in such forward-looking statements. Factors that could cause or contribute to differences include, but are not limited to, the risk that customers of Dreamworld Pailin may not accept or be attracted to the LT Game Limited products, the risk that the Company may not be able to distribute the LT Game Limited products in numbers that justify the Company’s allocation of time and expense or otherwise result in net profits to the Company and the risks set forth in Entertainment Gaming Asia’s annual report on Form 10-K for the year ended December 31, 2012 filed with the SEC on March 28, 2013 and subsequently filed quarterly reports on Form 10-Q. Entertainment Gaming Asia cautions readers not to place undue reliance on any forward-looking statements. Entertainment Gaming Asia does not undertake, and specifically disclaims any obligation to update or revise such statements to reflect new circumstances or unanticipated events as they occur.
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Traci Mangini, 312/867-0848