Paradise acquires patents from chairman

Electronic gaming systems supplier Paradise Entertainment Ltd yesterday announced that a wholly-owned subsidiary of the company will pay a total of HK$740 million (US$95.5 million) – in cash, a promissory note and shares – for a group of U.S. patents held by Paradise’s chairman Jay Chun (pictured). Currently, Mr Chun controls 10.14 percent of Paradise. After the deal, which also includes a reorganisation of the share capital of the company, Mr Chun will control around 71.12 percent of Paradise. That will oblige him to make an offer for the remaining shares. The deal involves five U.S. patents already granted and six others pending, related to multi-terminal betting systems. It is part of Paradise’s plan to expand its footprint in the United States. Paradise, through its subsidiary LT Game, is known for having what it claims is the only patented multi-terminal system here that combines electronic betting with a live dealer and live baccarat. The company has shown a willingness to use litigation to protect that monopoly.