LT And IGT Dispute Settled For $800,000Harry Coulter | 19 Dec 2017
A deal rumoured to be immensely lucrative, signed back in 2016, gave rise to a dispute between LT, IGT, and two other unnamed iGaming and software companies. LT, most widely known for its development of casino equipment, has reportedly settled the dispute, by paying IGT a whopping $800,000.
The exact details of the contract that caused the dispute are not entirely known, and it seems that the companies involved aim to purposefully keep specific details shrouded in mystery. What is known, however, based on information that has been offered to the public, is that the contract granted IGT exclusive global rights to create and distribute gaming systems based around certain licenses, and certain technology, with the exception of distribution in the gambling hotspot Macau. Which technology and which licenses are the part of the deal is entirely unknown. Either way, the contract sounds potentially extremely profitable to IGT.
A Dispute Shrouded in Secrecy
The basis of the dispute seems to have been as to whether LT was required to provide IGT with technology required for the development of the licensed products. Or, to be more specific, provide technology that IGT did not already have. As to whether this situation was the result of a mistake, or misstep in the agreement is once again unknown. Regardless, the dispute threw a wrench into the works of what seemed to be an otherwise amicably agreed upon arrangement.
The parent of LT, Paradise Entertainment, made an official statement in order to shed some light on the dispute, and the resolving of the dispute. The statement said that the sum of $800,000 was paid to IGT based on the estimated cost of the technology IGT required. In other words, instead of providing the technology itself, a sum was provided that could purchase that same technology. Again, what exactly the technology is, remains unknown.
Furthermore, it was made clear that the sum of $800,000 was agreed upon by both IGT and LT, with both parties satisfied with the amount. Plus, included in the sum of $800,000 would offset initial earn-out payments owed by LT, to IGT, as initially stated in the original contract agreement.
Both Parties Happy with Result
All in all, it seems that the dispute between these two companies was settled in mutually beneficial manner, with no party gaining or losing more than the other. An amicable solution is always best when these sorts of disputes arise, between two companies that seem to otherwise do sound business together.