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Universal Entertainment is preparing a return to the overseas gaming equipment market through UDN Gaming, a Nevada company backed by up to $25 million in financing from the Japanese group.
UDN will handle the first stage of the US licensing and equipment business while Universal Entertainment works through its own gaming licence applications. The group wants overseas gaming equipment to become a third core business alongside Japanese amusement machines and Okada Manila.
Good to Know
- Aruze USA will provide UDN Gaming with a credit facility of up to $25 million.
- Universal Entertainment will license gaming equipment IP to UDN for $100 per unit shipped.
- UDN will initially pursue US gaming licences while Universal Entertainment prepares its own applications.
UDN Gaming Provides Faster Route Into US Market
Universal Entertainment said US gaming licence reviews, particularly in Nevada, can require lengthy suitability checks covering major shareholders, directors, senior employees and other connected parties.
UDN gives the group a way to begin licence applications and commercial preparations before Universal completes that process.
“During the business launch phase, Universal Entertainment has decided to first use UDN… to apply for gaming licences and to advance the business in stages, while Universal Entertainment also intends to apply for licences in due course,” the company said.
UDN was incorporated in Nevada on March 13 and is wholly owned by Universal President Tomohiro Okada. The company was established to develop, manufacture and sell gaming equipment, including slot machines, outside Japan.
Universal currently has no voting interest in UDN. However, it expects to consolidate the business for accounting purposes because the group will supply its financing and core gaming equipment intellectual property.
Aruze USA will make up to $25 million available at 5.12% annual interest through December 31, 2035. UDN can draw the funds in stages.
Universal will also charge $100 for each unit shipped under its IP licence and provide engineering, accounting and administrative services at direct cost plus 6%.
Universal Targets New Revenue Outside Japan
The plan forms part of a broader effort to add another revenue source to the Universal Entertainment business.
Company materials already describe domestic pachislot and pachinko operations and the Philippines integrated resort business as its two main areas. Universal has also been assessing a third business pillar as part of its longer term strategy.
Universal cited weaker conditions in the Japanese amusement equipment market and greater competition in the Philippines casino sector as reasons to develop another business.
“There is a need to promptly secure a new revenue base in the form of a new business,” the company said.
The US equipment plan also reconnects Universal with a market previously served by Aruze Gaming America, which sold slots and electronic table games before filing for Chapter 11 bankruptcy protection in 2023. Play Synergy later acquired its slot assets, while Interblock bought selected electronic table game operations.
UDN has a related party structure because Tomohiro Okada owns the company. Okada therefore took no part in the Universal board discussion or vote covering the agreements. The other eight directors approved the transactions unanimously, along with the Audit and Supervisory Committee.
Universal or another designated party may eventually acquire all UDN shares. Shares owned by Okada already serve as collateral for the financing, and Aruze USA can require their transfer at the original subscription price.
FAQ
What is UDN Gaming?
UDN Gaming is a Nevada company established in March 2026 to develop, manufacture and sell gaming equipment overseas. Tomohiro Okada owns the company.
How much financing will UDN Gaming receive?
Aruze USA will provide a credit facility of up to $25 million at an annual interest rate of 5.12%.
Why is Universal Entertainment using UDN Gaming?
Universal wants UDN to begin the US gaming licence process while Universal Entertainment separately works toward obtaining its own licences.
Will Universal Entertainment own UDN Gaming?
Not initially. Tomohiro Okada currently owns all shares, although Universal expects to consolidate UDN for accounting purposes and could later acquire the company.
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