Universal Entertainment plans to re-enter the US slot equipment market through UDN Gaming, with its board approving a US$25m credit facility for the Nevada company.
UDN was established in March and is wholly owned by Universal president Tomohiro Okada. The proposed business would develop, manufacture and sell slot machines and other gaming equipment.
Universal, which operates Okada Manila in the Philippines and manufactures amusement machines in Japan, wants overseas equipment sales to become a “third pillar” of revenue alongside those businesses.
UDN would seek US gaming licences first. Universal said applying directly could take considerable time because regulators would need to assess the suitability of its major shareholders, directors and key personnel. The group intends to submit its own applications in due course.
Under arrangements approved on September 11 , Universal subsidiary Aruze USA would provide the credit facility at 5.12% annual interest. UDN would pay Universal $100 for each unit shipped under its intellectual property licence, with operational support charged at cost plus 6%.
Universal holds no voting rights in UDN but intends to consolidate the company’s results. A potential future acquisition of UDN’s shares would depend partly on the progress and outcome of Universal’s US licensing applications.
All UDN shares would be pledged as collateral for the financing. Okada abstained from the board’s deliberations and vote, with the remaining eight directors unanimously approving the arrangements.
The agreements are scheduled for execution on September 30. Universal has announced no commercial launch date and expects the initiative to have an immaterial impact on its 2026 results.
Tags: Universal Entertainment, UDN Gaming, Tomohiro Okada, Nevada
