Hong Kong-based e-table supplier Paradise Entertainment Ltd. will set up distribution of its products in the U.S. and Australia through companies controlled by Feng Linyi, who is the brother-in-law of Paradise Chairman Jay Chun.
The distribution deal is on a “non-exclusive basis,” according to a filing last week with the Hong Kong Stock Exchange.
“Mr. Feng is the brother-in-law of Mr. Jay Chun, the controlling shareholder, the executive director, the chairman and the managing director of the company, and thus a deemed connected person,” said the filing.
Under the three-year distribution deal, there will be an annual cap on the value of business between the two parties amounting to HKD50 million (US$6.4 million) per year. Paradise Entertainment said the companies controlled by Feng are “licensed to sell the gaming products in Australia and the U.S., and they are willing to be appointed on a non-exclusive basis.”
The filing added, “The group shall not be obliged to accept any order from companies controlled by Mr. Feng for the gaming products on terms and conditions that are less favorable to the group than those agreed between the group and its other independent third-party distributors.” Paradise Entertainment’s filing noted that Chun had not been involved in the board’s vote on the deal.
Paradise Entertainment develops, supplies and sells electronic gaming products in Macau and internationally under the LT Game brand. Its portfolio includes the Live Multi Game (LMG) machine, featuring a live dealer but electronic betting and bet settlement.
In November, Paradise Entertainment said LT Game products were undergoing approval processes in several states in the U.S., and had already been approved in Nevada.
In August 2014, LT Game Ltd., part of the Paradise Entertainment group, announced what was described as a strategic three-year distribution deal with the pre-merger slot machine supplier International Game Technology (IGT).
Under it, IGT was to distribute LT Game’s live and electronic table game products on an exclusive basis in the U.S. and Canada. LT Game was to serve as distributor for IGT’s slot machines in Macau.
