Entertainment Gaming Asia Inc. (NASDAQ: 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.”
Select the service that is right for you!COMPARE ALL SERVICES
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
- Real Money + Doug Kass + 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV