Universal Entertainment wants to return to international slot-machine sales, starting through a Nevada company owned by its president. The Japanese group would supply financing and technology while UDN Gaming pursues the licences needed to enter the market.

The move reflects pressure on Universal’s existing businesses: a declining domestic pachinko and pachislot market and stronger competition around Okada Manila in the Philippines. Selling equipment overseas would give the group another source of revenue built on its existing manufacturing expertise.

Universal expects a direct US licence application to involve lengthy suitability reviews of shareholders, directors and other relevant people. Its plan is therefore to begin through UDN, owned by president Tomohiro Okada, and pursue its own licences later. Whether that approach accelerates approval remains unproven.

The arrangement would put Universal’s money behind a company it does not initially own. Its subsidiary Aruze USA would extend a US$25 million credit facility, with agreements scheduled for September 30 and borrowing drawn in stages.

The proposed terms also give Universal a route to ownership. UDN’s shares would secure the lending arrangement, and Okada would transfer them to Universal or its designee at his original subscription price on a date designated by the lender. Universal plans to consolidate UDN in its accounts, although the timing remains undecided.

Because Okada owns UDN, he abstained from the board’s deliberation and vote. The other eight directors unanimously approved the transaction. Universal’s September 11 disclosure.

The announcement establishes how Universal intends to finance its return and eventually acquire the business. The next test is whether that structure delivers a licensed supplier—and machines that overseas casinos want to buy.

We track how money, players and regulation move across East Asia's gaming markets — including the parts that don't show up in the official figures. If that's your world, reply. The best context usually comes from comparing notes.

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East Asia Reports
Web: eastasiareports.com · Email: [email protected]
Author — Adrià Mas Rodríguez