IGT and LT Game Ltd. of Macau form partnershipAugust 18, 2014 8:11 PM by Ray Poirier
Who would have thought it: Las Vegas Sands Corp. (LVS) serving as a “matchmaker,” which eventually results in a three-year strategic partnership between International Game Technology (IGT) and LT Game Ltd. of Macau.
The agreement announced last week links two firms considered leaders in their field. IGT will manufacture its slot machines and LT Game will distribute IGT machines in Macau. On its end, IGT will have exclusive rights to distribute LT Game’s live and electronic table games in the U.S and Canada.
And it all came together because some Las Vegas Sands executives saw the value of putting the two companies together and began the discussions in London last February.
Jay Chun, chairman of LT Game told GGRAsia reporters the initial meeting between the two was brokered by senior executives of Las Vegas Sands during the International Casino Exhibition – known as ICE.
“We were introduced by very senior management of Las Vegas Sands from Las Vegas during the ICE show in London. They said ‘You can have some strategy to work together. You (LT Game) are very good on the table games, and you (IGT) are very good on the slot machines’,” Chun was quoted as saying.
In Macau, where labor costs have been under pressure, LT Game products have become very popular since they use only one live dealer to settle multiple bets on electronic betting tables. Although that wouldn’t be considered a factor in U.S. casinos, the use of the electronic tables are believed to substantially increase the number of hands played per hour.
According to Robert Amerine, director of IGT’s corporate strategy, LVS had shown an interest in “taking the LT Game product to the U.S. markets. And in moving to the U.S., you’ve got a distributed market with a lot of different properties, where LT Game will benefit strategically from the infrastructure that IGT already has in place from a service and sales standpoint.”
Amerine added: “I think Las Vegas Sands recognized there was an opportunity for us strategically as a combination to work together. So they arranged some of the early meetings.”
There was no comment on the new deal from Sands executives.
Ray Poirier is the longtime executive editor at GamingToday.
Contact Ray at RayPoirier@GamingToday.com.
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