The manufacturer of gaming equipment, LT Game Ltd along with other two companies involved have agreed to settle the dispute they have been facing from a deal signed all the way back in April 2016, ratified in June, the same year, by simply paying IGT $800,000.
The deal in question has been originally filed to the Hong Kong Stock Exchange and signed by LT Game’s parent company, Paradise Entertainment Ltd. Paradise Entertainment Ltd, at that time was chaired by a businessman named Jay Chun.
The deal was supposed to give IGT an exclusive right on a global scale to produce, promote, sell and deliver electronic gaming systems with “assignment and license of certain patents and associated technology”.
The LT Game brand produces an electronic table game product popular with Asian players and known as Live Multi Game, featuring electronic betting and bet settlement, but with a live dealer. The entire process was supposed to be monitored by LT Game, except the sale of products on the Macau market in the next 15 years.
After the agreement has been signed, some issues arose between LT Game and IGT, regarding a technology LT Game did not even have and was supposed to provide to IGT so that they can make and put those licensed products into the agreement.
At the Hong Kong Stock Exchange, Paradise Entertainment decide to comment on the matter, stating the following: “Subsequent to the signing of the agreement, a dispute arose among the LT Game parties and IGT as to whether the LT Game parties have to provide certain technology (not being possessed by the LT Game parties) to IGT that may be required for IGT to make and place the licensed products under the agreement.”
“On 17 October 2017, upon commercial negotiation of the parties with the view to resolving the Dispute, the LTG Parties agreed in writing with IGT that they shall pay to IGT a sum of US$800,000 (equivalent to approximately HK$6,240,000) (the ‘‘Settlement Amount’’) for complete resolution of the Dispute, which was determined based on the sharing by the LTG Parties of the estimated costs for the required technology.”
They also stated that both sides reached an agreement and settled the dispute. They also agreed that the sum agreed would offset the initial payments that IGT owes to LT Game Ltd under the 2016 deal, to the beginning of the fourth quarter of next year.
Furthermore, the statement said: “Any outstanding settlement amount not being set-off by such date will need to be paid by the LT Game parties to IGT in cash by October 15, 2018,”
“Notwithstanding the above payment to IGT, the board maintains its view regarding the estimated amount of earn-out payments to be paid by IGT as set out in the circular, which is approximately US$44 million… during the term.”