Universal Entertainment plans return to overseas gaming equipment market
The Japanese group will initially use a Nevada-based company to pursue gaming equipment development and licensing in the United States.
Japan.- Universal Entertainment Corp plans to re-enter the overseas gaming equipment market through UDN Gaming Inc, a Nevada-based company established in March and entirely owned by the group’s president, Tomohiro Okada. The Japanese gaming group said the initiative will focus on the US market with the aim of creating a “third pillar” of revenue alongside its existing amusement equipment and integrated resort operations.
Universal Entertainment currently operates the Okada Manila casino resort in the Philippines and manufactures pachinko and other amusement machines primarily for Japan. Its board approved a series of agreements with UDN on Friday. Okada controls the company and is also the principal shareholder of Universal Entertainment’s privately held parent, Okada Holdings Ltd.
UDN was established “for the purpose of promoting the business of development, manufacture, and sale of gaming equipment including slot machines overseas”. Its use is linked to the regulatory requirements of entering the US gaming sector. A direct application would require suitability assessments of major shareholders, directors, key employees and other relevant parties. According to the company, completing those reviews would likely take a “considerable” amount of time.
Universal Entertainment currently holds no voting rights in UDN, although it intends to include the Nevada company in its consolidated accounts. It intends to eventually acquire all UDN shares, either itself or through a designated third party. The timing of that transaction will depend in part on the progress and outcome of Universal Entertainment’s own applications for gaming licences in the United States.
