Japan’s Universal Entertainment Corp (UEC) has announced plans to develop a new slot machine manufacture and supply business, to be based out of Las Vegas, Nevada and with the goal of expanding the group’s revenue base by selling machines to international markets.
In a Friday filing, UEC said that its President and Executive Director, Tomohiro Okada, has incorporated a company called UDN Gaming, Inc in Nevada, where he intends to apply for initial gaming licenses.
While UEC does not at this stage hold any voting rights in UDN, the company revealed that it plans to provide loans for the entire amount of UDN’s financing by way of a credit facility and will also grant licenses for the use of UEC’s intellectual property rights related to the development, manufacture and sale of gaming equipment.
UDN will then become a consolidated subsidiary of UEC through the acquisition of voting rights, pending the progress and outcome of UEC’s acquisition of gaming licenses in the United States.
UEC is a leading developer of pachinko and pachislot machines in Japan and is also the parent company of Philippines integrated resort Okada Manila.
However, with macro-economic conditions impacting the business environment – including a downward trend in the pachinko market and intensifying competition in the integrated resort business in the Philippines, UEC said it recognizes the importance of establishing a new revenue base in order to achieve sustainable growth.
“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.
“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.”
UEC added that as licensing and suitability reviews in Nevada are expected to take a considerable amount of time, it has determined to first use UDN to apply for gaming licenses and to advance the business in stages, with UEC intending to apply for its own licenses in due course.
UEC earlier this year reported a JPY231.4 billion (US$1.51 billion) loss in 2025, widened from JPY15.6 billion (US$102 million) in the prior year primarily due to impairment losses and expenses at Okada Manila.
More recently it revealed an improved performance in the June 2026 quarter thanks to sales growth in its pachinko and pachislot segment.
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