Universal Entertainment Corporation reorganizing for Potential Achievement

Japanese pachinko, slot and arcade games manufacturer, Universal Entertainment Corporation, has reportedly announced that it will be instituting an ‘intra-group organizational realignment’ in order to prevent ‘unsuitable individuals’ from harming its future business prospects.

According to a Tuesday report from GGRAsia, the Tokyo-based firm used a JASDAQ Securities Exchange filing to reveal that the exercise will see it establish a new limited liability company to fully control its ‘casino-related businesses,’ which are to include its Aruze USA Incorporated, UE Technologies Incorporated and Tiger Resort Asia Limited subsidiaries.

Universal reportedly stated that this new enterprise is ‘to become the direct parent’ of its casino-related concerns and subsequently implement ‘a mechanism’ designed to keep ‘unsuitable individuals’ or ‘person acting on behalf of unsuitable individuals’ from having any influence on ‘the execution of the business.’

“Since the arrangement will create a structure for executing business without being affected by unsuitable individuals…the companies that operate the casino-related businesses will be able to stably operate those businesses even by applicable laws and ordinances in countries around the world,” read the Friday filing from the corporation. “The company plans on determining the specific transition scheme for the organizational realignment in question in the future based on further examination and will disclose that scheme once it has been decided upon.”

The company also used the filing to detail that its UE Technologies Incorporated subsidiary is planning to acquire licenses that would give it the right to offer a variety of casino innovations including player tracking systems, bill validators and gaming tables to operators in the United States. However, it declared that this business could be put at risk if a regulatory authority were to find that ‘unsuitable individuals are present among management or shareholders.’

Although the filing from did not specifically mention Kazuo Okada (pictured) by name, GGRAsia reported that the reorganization is widely being interpreted as a way for the firm to help distance itself from the 75-year-old businessman after he was removed as its Chairman last year. The Japanese billionaire is the subject of an ongoing enquiry by the Nevada Gaming Control Board into allegations that he may have been involved in ‘three acts of fraudulence’ and is being investigated by the Philippines Department of Justice over similar accusations.

Okada additionally served as Chairman for Universal Entertainment Limited’s Tiger Resort Asia Limited subordinate until last year and is currently the subject of a pair of lawsuits brought by the operator behind the Okada Manila integrated casino resort claiming damages of over $300 million.