Universal Entertainment Plans Las Vegas Slot Machine Business

Universal Entertainment Corporation (UEC) has announced plans to establish a slot machine development and supply business in Las Vegas as the Japanese gaming group looks to create an additional source of international revenue.

UEC President and Executive Director Tomohiro Okada has incorporated UDN Gaming in Nevada, with the new company expected to begin applying for the gaming licences required to operate in the state.

The business will focus on developing, manufacturing and supplying gaming machines to international markets, using technology and intellectual property developed by UEC through its existing gaming equipment operations.

UDN Gaming To Begin Nevada Licensing Process

UEC currently holds no voting rights in UDN Gaming but intends to provide the company's full funding requirements through a credit facility. It will also license intellectual property relating to gaming equipment development, manufacturing and sales to the new business.

The longer-term plan is for UDN to become a consolidated subsidiary of Universal Entertainment through the acquisition of voting rights, although this will depend on progress through the US gaming licensing process.

UEC said licensing and suitability investigations in Nevada are expected to take considerable time. The company has therefore opted to initially pursue licences through UDN before seeking its own gaming approvals in the US at a later stage.

The approach will allow preparations for the new operation to progress while Universal Entertainment works through the regulatory requirements associated with establishing a gaming equipment business in Nevada.

Universal Entertainment Targets Third Revenue Pillar

The expansion forms part of UEC's medium-to-long-term strategy to develop what it describes as a third pillar alongside its two established business segments.

Universal Entertainment is a major supplier of pachinko and pachislot machines in Japan and is also the parent company of Philippine integrated resort Okada Manila.

However, the company has identified challenges across both areas, including contraction within Japan's pachinko market and increasing competition within the Philippines' integrated resort sector. UEC said these conditions have increased the importance of developing additional revenue streams to support sustainable growth.

The proposed Las Vegas operation will allow the group to utilise its existing gaming technology, intellectual property, manufacturing expertise and industry knowledge to target customers outside Japan and the Philippines.

New Business Follows Significant 2025 Loss

The expansion plans follow a challenging financial period for Universal Entertainment, which reported a JPY231.4 billion ($1.51 billion) loss for 2025, widening substantially from JPY15.6 billion ($102 million) a year earlier.

UEC attributed much of the deterioration to impairment losses and expenses associated with Okada Manila. More recent trading showed signs of improvement, however, supported by increased sales from its pachinko and pachislot operations during the quarter ending June 2026.

Universal Entertainment has not disclosed when UDN Gaming could begin supplying slot machines or identified the international markets and customers it intends to target.

The immediate focus will instead be on progressing UDN's Nevada licensing applications, representing the first stage of UEC's planned return to the international gaming equipment supply market.