Paradise Entertainment Posts $10.5M Loss as LT Game Targets North America

MACAU – Paradise Entertainment reported a HK$82.6 million ($10.5 million) first-half loss as weaker gaming equipment sales weighed on its remaining operations.

The Macau gaming technology company is responding by expanding LT Game internationally, including plans to re-enter major North American casino markets through licensed distributors.

Paradise swung from a HK$29 million profit from continuing operations in the first half of 2025 to a HK$82.6 million loss for the six months ended June 30, 2026. Revenue from continuing operations fell 67.1% to HK$41.3 million from HK$125.4 million a year earlier.

Gaming Equipment Sales Drop as Kam Pek Business Ends

Revenue from the development, sale and leasing of electronic gaming equipment and systems fell 74.2% to HK$32.3 million. Macau accounted for HK$30.3 million of that total, down 75.8% year over year, as sales of Live Multi-Game terminals and systems declined.

Paradise said some casino customers may have delayed purchases while waiting for Black Coral, the next generation of LT Game’s Live Multi-Game platform. The company expects the system to launch in the second half of 2026 or early 2027, subject to final regulatory approval.

Adjusted EBITDA from continuing operations swung to a HK$74.4 million loss from a HK$41.3 million profit a year earlier. The electronic gaming equipment and systems segment recorded a HK$54 million adjusted EBITDA loss, reflecting weaker sales alongside higher research and development and other costs.

The comparison also reflects a major structural change at Paradise. Its casino management business ended when Casino Kam Pek Paradise ceased operations in December 2025. In the first half of 2025, that now-discontinued operation had contributed HK$382.6 million in revenue and HK$148.8 million in profit.

LT Game Prepares North American Return

Paradise said LT Game is advancing product localization, technical certification and testing as it prepares to deploy customized electronic gaming products in selected North American jurisdictions through distributors holding the necessary regulatory licenses.

The strategy represents a change from last year, when LT Game stepped back from U.S. gaming equipment sales amid tariff concerns. At the time, the company said the American market accounted for a relatively small part of its international business but left open the possibility of returning when conditions improved.

Paradise did not specify which U.S. states or Canadian provinces it is targeting, nor did it provide a timetable for commercial deployments. Its interim filing said the company intends to work with established local distributors to address demand for replacement hardware and casino-system upgrades.

The group is also broadening its Asian supplier business. LT Smart Singapore received Approved Manufacturer status from the country’s Gambling Regulatory Authority in June, allowing it to provide gaming machines to Singapore casinos. The regulator’s approved manufacturer register lists LT Smart Singapore among authorized manufacturers.

Black Coral Central to Supplier Strategy

Black Coral is expected to play a central role in Paradise’s attempt to rebuild its equipment business. The platform updates both player-facing interfaces and casino floor-management software, with real-time analytics, multi-bet functions and operational monitoring features.

Paradise said Black Coral is in final testing and expects regulatory approval for commercial deployment in Macau during the second half of 2026. It is also using a Manila showroom as a base for expansion into markets including Vietnam, Cambodia and Malaysia.

The weaker first half has also reduced Paradise’s balance-sheet position. Net assets fell 22.9% from the end of 2025 to HK$366.3 million, while bank balances and cash declined from HK$378.1 million to HK$235 million.

Paradise said its geographic expansion, new gaming products and advisory business are intended to diversify revenue after the end of its Macau casino management operation.

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