Universal Entertainment Corp (UEC) has unveiled plans to establish a new overseas gaming equipment business centered on slot machine development, manufacturing, and distribution, marking a significant step in the Japanese group’s efforts to broaden its revenue streams beyond its existing operations.
The initiative will be pursued through a newly incorporated Nevada company, UDN Gaming, Inc., which was established by UEC President and Executive Director Tomohiro Okada. Based in Las Vegas, the new entity is expected to serve as the vehicle through which the group seeks entry into international slot machine markets, with an initial focus on obtaining the regulatory approvals required to operate in the United States.
According to company disclosures (pdf), UEC’s board approved a series of agreements with UDN covering financing, intellectual property licensing, and operational support. The arrangements include a credit facility through which UEC will provide loans covering UDN’s financing requirements. The company will also license gaming-related intellectual property to UDN and provide support services in areas such as engineering, accounting, and administration.
At present, UEC does not hold voting rights in UDN. However, the company has outlined plans to eventually bring the business within its corporate structure. UEC stated that UDN is expected to become a consolidated subsidiary in accordance with applicable accounting standards, although the timing has not yet been finalized.
Nevada Licensing Strategy Shapes Expansion Plans
A key element of the project involves navigating Nevada’s gaming regulatory framework. UEC indicated that licensing reviews and suitability investigations in the state are expected to require substantial time, prompting the company to adopt a phased approach.
Under this strategy, UDN will pursue the initial gaming licenses needed for the business, while UEC plans to seek its own approvals later. The company believes this sequence will allow the venture to progress while regulatory processes continue.
The arrangement also involves a related-party transaction. UDN is wholly owned by Okada, who serves as UEC’s Representative Director and President and is connected to the company’s parent organization through Okada Holdings Limited. UEC said it has implemented measures intended to ensure fairness and prevent conflicts of interest in connection with the transaction.
The company described the Nevada-based structure as a practical means of advancing the project while regulatory approvals remain pending. Once licensing requirements are satisfied and voting rights are acquired, UDN is expected to be incorporated more fully into UEC’s operations.
Search for New Revenue Sources
The move comes as Universal Entertainment seeks additional growth opportunities amid changing market conditions affecting its existing businesses.
UEC remains one of Japan’s major pachinko and pachislot manufacturers and is also the parent company of the Philippine integrated resort Okada Manila. However, the company has acknowledged challenges in both sectors. It cited a continuing decline in the pachinko market and increasing competitive pressure within the Philippine integrated resort industry as factors influencing its decision to pursue new business opportunities.
The company outlined the initiative as part of a broader long-term strategy aimed at building an additional source of earnings.
“Based on this recognition, as part of its medium- to long-term growth strategy, the UEC Group has decided to develop new businesses that will serve as a “third pillar” in addition to its existing businesses,” the company explained.
The filing further stated that the group intends to re-enter a sector where it already possesses substantial expertise.
“As one such initiative, the UEC Group has decided to pursue re-entry into the business where it can utilize the technologies, intellectual property, business know-how, and other resources related to the development, manufacture and sale of gaming equipment that it has cultivated to date.”
The diversification effort follows a difficult financial year for the company. UEC reported a loss of JPY231.4 billion (US$1.51 billion) for 2025, a significant increase from the JPY15.6 billion (US$102 million) loss recorded a year earlier. The result was primarily attributed to impairment losses and expenses associated with Okada Manila.
More recently, the group reported stronger performance during the quarter ended June 2026, supported by higher sales in its pachinko and pachislot operations. The planned slot machine venture represents another step in UEC’s effort to strengthen its business foundation and expand its presence in international gaming markets.