Universal Entertainment plans an overseas slot-machine market return through UDN Gaming, a Nevada company owned by Universal President Tomohiro Okada.
Universal Entertainment overseas slot return will launch through UDN Gaming, a Nevada firm owned by President Tomohiro Okada. UDN will apply for US gaming licenses and develop slot equipment. Universal provides financing, intellectual property, and operational support during the launch phase.
- UDN Gaming Structure Details
- Universal Financing Arrangements
- Third Pillar Business Strategy
Universal Entertainment plans an overseas slot-machine market return through UDN Gaming, a Nevada company owned by Universal President Tomohiro Okada. The structure supports an earlier business launch while the Japanese group pursues its own US gaming licenses, according to a September 11th filing. UDN will initially apply for the required licenses and develop, manufacture and sell gaming equipment, including slot machines. Universal said it also intends to apply for US gaming licenses in due course. The group said a direct Universal Entertainment application would require suitability reviews covering major shareholders, directors, key employees and other relevant parties, which could take considerable time.
UDN Gaming Structure Details
Established in Nevada on March 13th with capital of $1, UDN is wholly owned by Okada, who also serves as one of its directors. Universal will provide the company with financing, gaming equipment intellectual property and operational Universal Entertainment support during the launch phase. The Japanese group said it wants the overseas gaming equipment business to become a ‘third pillar’ alongside its domestic amusement equipment operations and the integrated resort business centered on Okada Manila. Universal cited the declining domestic amusement equipment market and intensifying competition in the Philippine integrated resort sector as reasons for establishing another revenue base. Industry analysts track these developments through reports like AGBrief coverage of regional gaming expansions.
Universal Entertainment Financing Arrangements
Under agreements scheduled to be executed on September 30th, Universal subsidiary Aruze USA will provide UDN with a credit facility of up to $25 million. The facility carries an annual interest rate of 5.12 percent and runs until December 31st, 2035. UDN will draw down the funds in stages according to its financing requirements. All shares held by Okada will serve as Universal Entertainment collateral for the facility. The agreement also allows Aruze USA to require Okada to transfer all UDN shares to Universal or a designated third party at the original subscription price.
Universal will license its gaming equipment intellectual property to UDN for $100 per unit shipped. Engineering, accounting and administrative support will be charged at direct cost plus a 6 percent markup. Universal currently holds no voting rights in UDN. However, the group said UDN would become a consolidated subsidiary under applicable accounting standards because Universal will provide all of its financing and license its core gaming equipment intellectual property to the company. The timing of the consolidation has not been determined. Universal may later acquire Universal Entertainment UDN’s voting rights and make it a wholly owned subsidiary, depending on the progress and outcome of its own US licensing applications.
Frequently Asked Questions
Who owns UDN Gaming?
UDN Gaming is wholly owned by Universal President Tomohiro Okada, who also serves as one of its directors. The company was established in Nevada on March 13th with capital of $1. Universal provides financing, intellectual property, and operational support during the launch phase.
What is the credit facility amount?
Universal subsidiary Aruze USA will provide UDN with a credit facility of up to $25 million. The facility carries an annual interest rate of 5.12 percent and runs until December 31st, 2035. UDN will draw down the funds in stages according to its financing requirements.
What is Universal’s role in UDN Gaming?
Universal will provide UDN with financing, gaming equipment intellectual property and operational support during the launch phase. The group said UDN would become a consolidated subsidiary because Universal provides all financing and licenses core gaming equipment intellectual property. Universal currently holds no voting rights in UDN.
Why is Universal establishing UDN Gaming?
Universal cited the declining domestic amusement equipment market and intensifying competition in the Philippine integrated resort Universal Entertainment sector as reasons. The group wants the overseas gaming equipment business to become a ‘third pillar’ alongside domestic operations and Okada Manila. This creates another revenue base for the Japanese group.
Will UDN become a wholly owned subsidiary?
Universal may later acquire UDN’s voting rights and make it a wholly owned subsidiary, depending on the progress and outcome of its own US licensing applications. The timing of the consolidation has not been determined. Universal currently holds no voting rights in UDN.
This article has been thoroughly researched and reviewed by the CasinoBait editorial team to ensure accuracy and relevance for Asian casino players.
