Inside Asian Gaming

JULY 2018 INSIDE ASIAN GAMING 13 Universal prepares “organizational realignment” to prevent Kazuo Okada involvement Japan’s Universal Entertainment Corporation has announced an “organizational realignment” aimed at preventing former Chairman Kazuo Okada from having any involvement in its casino- related businesses. Universal revealed that it had established a new company, Limited Liability Company ABC, which is set to become the parent company of its three primary casino-related businesses, namely Tiger Resort Asia Limited, Aruze USA, Inc. and another new entity called UE Technologies Inc. Universal also unveiled its plans to commence “the full-fledged manufacture and sales of casino-related devices” including Player Tracking Systems, multi-currency bill validators and fully automatically-managed casino tables and casino machines through UE Technologies, which will become a US subsidiary. Outlining the reasons for its organizational realignment, the company said, “In acquiring and maintaining licenses for casino-related businesses in the various states of [the United States], members of management and shareholders must undergo strict screenings of suitability conducted by the gaming commission serving as the regulatory authorities. “In cases where unsuitable individuals are present among management or shareholders, there is a risk of being unable to acquire a license to begin with, or a license that is already held being invalidated. “Given that, as part of preparations to secure the structure to execute business at the casino-related businesses … without being affected by a shareholder of the company’s parent who has been cited as violating governance and compliance (Okada) even should this unsuitable individual assume the post of director at the company or its parent, the company has decided to conduct an intra-group organizational realignment for those casino- related businesses.”