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Japan’s Universal Entertainment Corp, or UEC, has announced plans to establish a new slot machine manufacturing and supply business in Las Vegas, Nevada.
The new operation is intended to expand the group’s revenue base by selling gaming machines to international markets. In a Friday filing, UEC said its President and Executive Director, Tomohiro Okada, had incorporated UDN Gaming, Inc in Nevada.
UDN Gaming is expected to apply for initial gaming licenses in the state. The new company will serve as the first step in UEC’s planned re-entry into the international gaming equipment business.
At this stage, UEC does not hold any voting rights in UDN. However, the company said it plans to finance the full amount of UDN’s funding requirements through a credit facility.
UEC will also grant UDN licenses to use the group’s intellectual property connected to the development, manufacturing, and sale of gaming equipment.
UDN Set to Become UEC Subsidiary
UDN Gaming will become a consolidated subsidiary of UEC through the acquisition of voting rights. This will depend on the progress and outcome of UEC’s efforts to acquire gaming licenses in the United States.
The company said licensing and suitability reviews in Nevada are expected to take a considerable amount of time. Because of this, UEC has decided to initially use UDN to apply for gaming licenses and move the business forward in stages.
UEC intends to apply for its own gaming licenses at a later time. The structure allows the group to begin the licensing process while preparing for a longer-term expansion in the United States.
The planned Las Vegas-based business will focus on developing, manufacturing, and supplying slot machines to international markets. UEC said it intends to use the technology, intellectual property, business knowledge, and other resources it has developed over time.
New Revenue Base for UEC
UEC is a major developer of pachinko and pachislot machines in Japan. It is also the parent company of the Philippine integrated resort Okada Manila.
The company said macroeconomic conditions have affected its business environment. These conditions include a downward trend in the pachinko market and intensifying competition in the Philippines’ integrated resort sector.
Because of these challenges, UEC said it recognizes the importance of creating a new revenue base to achieve sustainable growth.
The group described the planned business as part of its medium- to long-term growth strategy. UEC said it has decided to develop businesses that can serve as a 3rd pillar alongside its existing operations.
Its existing businesses include the pachinko and pachislot segment in Japan, as well as its integrated resort operations through Okada Manila. The new gaming equipment supply business would allow the group to use resources that it has already built in the development and sale of gaming machines.
Return to Gaming Equipment Supply
The new business represents UEC’s planned return to a segment where it believes it can apply its existing expertise.
UEC said the move will allow the group to use its technologies, intellectual property rights, manufacturing knowledge, and business resources related to gaming equipment. This includes the development, manufacture, and sale of machines.
By establishing a business in Las Vegas, the company is aiming to reach international markets beyond its current operations in Japan and the Philippines.
The company did not provide details on when UDN Gaming may begin supplying slot machines. It also did not identify potential markets, customers, or products that would be included in the new operation.
Recent Financial Performance
UEC reported a JPY231.4 billion, or US$1.51 billion, loss in 2025. The loss widened from JPY15.6 billion, or US$102 million, in the previous year.
The company said the wider loss was mainly linked to impairment losses and expenses at Okada Manila.
More recently, UEC reported improved performance in the June 2026 quarter. The improvement was supported by sales growth in its pachinko and pachislot segment.
The proposed slot machine supply business forms part of UEC’s effort to build another revenue source while navigating challenges in its existing businesses. The company’s next steps will involve UDN’s licensing applications in Nevada and UEC’s own future plans to obtain gaming licenses in the United States.
Source: Inside Asian Gaming
