LT Game's New Assembly Line Enhances Gaming Machine Supply

LT Game Ltd, a prominent casino equipment supplier based in Macau, has recently inaugurated a new assembly facility within the region. This strategic move aims to streamline the production and supply of their gaming products, enhancing efficiency in their operations. The new facility, sprawling across 20,000 square feet (1,858 sq. metres), is strategically located in an industrial building in the northern part of the Macau peninsula. This significant development was marked by a ceremony attended by senior executives from the Macau casino industry, highlighting the importance of this expansion for LT Game and the broader gaming sector in the region.

Enhancing Supply Chain Efficiency

Jay Chun, the chairman of Paradise Entertainment Ltd, which is the parent company of LT Game, emphasized the impact of the new assembly facility on the company's supply chain. "Having our production line here can help make the delivery [of products] punctual and enable us to have [better] control of our production volume," stated Mr. Chun. Previously, the assembly of LT Game's products was outsourced to original equipment manufacturers (OEMs) in Taiwan, which posed challenges due to dependency on their availability. "The tasks were really subject to their availability... Now, having the process available here, our delivery time is shorter," Mr. Chun added, underscoring the benefits of having an in-house facility.

The new assembly location is conveniently situated next to LT Game's office and showroom and is owned by the group. With an investment of HKD10 million (US$1.29 million), the facility is capable of assembling 60 units of product per day, covering all of LT Game's current cabinet models such as the LTS-1, LTS-2, Mighty Mite, Vista, Speedwave, and Ripple. Additionally, the facility is equipped to handle maintenance and repair work on products already in the market, further enhancing LT Game's service capabilities.

Navigating International Markets and Tariffs

As LT Game looks to expand its reach beyond Macau, the company is actively exploring opportunities in other Asian markets as well as North America. However, the expansion into the U.S. market is currently on hold due to trade tariffs imposed by the United States. "Our exports to the U.S. are definitely affected", and for now would be put on hold, stated Mr. Chun. In 2024, overseas sales contributed only 0.6 percent of the total sales revenue, with the majority of LT Game's current international sales being generated in Asian markets, particularly in the Philippines and Cambodia. The firm is also considering Europe as a potential market.

Regarding the impact of U.S. tariffs on their core business, Mr. Chun noted that it was not a significant issue. Most components for LT Game's machines, such as cabling and monitors, are sourced from mainland China. "The components that we sourced from the U.S. [for LT Game's gaming machines] are mainly the bill validators, but those can be sourced from Japan instead," Mr. Chun explained. This flexibility in sourcing components allows LT Game to mitigate the effects of tariffs and maintain their production efficiency.

Paradise Entertainment Ltd reported a revenue of HKD361 million from the sale of electronic gaming equipment and systems in Macau and overseas for the full year of 2024. Of this, overseas sales amounted to just over HKD2.3 million, which represents a small fraction of the total revenue. Looking forward, LT Game is also venturing into the development of "smart table" products for overseas markets, a segment where companies like Walker Digital Table Systems LLC and Angel Group are already established players in Macau.

Posted by Wizard
Apr 16 2025