Macau-based supplier LT Game has suspended the sale of gaming equipment in the United States due to the impact of the US-China tariff war, the company’s Chairman and Managing Director Jay Chun has revealed.
The update was provided on the same day as LT Game – a subsidiary of Paradise Entertainment Limited – officially launched its new Macau production line, which is now producing slot machines and electronic table games including the company’s latest flagship models LTS-1, LTS-2, Mighty Mite, Vista, Speedwave and Ripple.
Speaking with media at an opening ceremony on Tuesday, Chun said LT Game would focus for the time being on expanding its presence throughout Asia and Europe.
“The demand in the Asian market is still very high,” he explained. “The Philippines is currently the largest market in Asia and countries such as Sri Lanka, Vietnam and Cambodia are also growing rapidly.
“LT Game plans to expand into the European market and has an office in the United States.
“Overall, overseas sales are concentrated in the Asian markets, especially the Philippines and Cambodia. The US market accounts for a relatively small proportion of sales, but due to the high tariffs brought about by the trade war there will not be a focus on the US market for the time being.
“We won’t be selling to the US in the short term. We’ve held off for the time being because the tariff on a gaming machine is more than 100% and it’s hard to compete with products made in the US.”
Chun said he maintains a wait-and-see attitude towards the North American market and hasn’t given up on resuming business in the future.
“I believe the trade issue can be resolved definitively, probably within a few months, and then we can consider reselling to the North American market,” he clarified.
On opening its new production line, Chun said his company continues to lead the way in technological innovation within the gaming manufacturing industry – developing and patenting high-end models such as Speedwave and achieving several technical breakthroughs in components, most notably a patented dice-rolling mechanism designed specifically for craps.
The Macau production line occupies an area of around 20,000 square feet and is the result of a HK$10 million investment.
“The production line can produce up to 20 machines per shift, or 60 machines per day if a three-shift system is adopted, with an annual production capacity of about 20,000 units,” Chun said
“It is mainly for final assembly of components from different parts of the world. Chassis and cabling are mainly from mainland China, PCs are from Taiwan and cash registers are from the US and Japan.”
Smart thinking
According to Chun, LT Game is now preparing to move into the smart table segment – even if the local Macau market is already dominated by Walker Digital Table Systems (WDTS) and Angel.
“LT Game is planning to launch smart tables – there are still opportunities to enter the markets of neighboring countries,” he said.
“Our smart tables are nearly half the price of similar products on the market, but their accuracy is not compromised. Smart tables can theoretically support a wide range of table games, but for now LT Game is ready to launch a smart table mainly for baccarat.
“Although there are complex sensor systems involved in the design of smart tables, LT Game is well positioned to compete in this market and hopefully expand into other overseas markets.”
