Universal Entertainment is preparing to re-enter the overseas gaming equipment sector through Nevada-based UDN Gaming, as the Japanese supplier looks to establish a third revenue stream alongside its domestic amusement equipment and integrated resort businesses.
UDN was incorporated in Nevada in March 2026 and is wholly owned by Universal Entertainment President and Representative Director Tomohiro Okada. It will initially apply for US gaming licences before Universal Entertainment pursues its own approvals at a later stage.
The structure reflects Nevada's licensing requirements for gaming equipment manufacturers and distributors. Applications can require licensing or suitability reviews for officers, directors, shareholders and other individuals, alongside personal history disclosures and financial documentation.
Nevada separately licences manufacturers and distributors of gaming equipment. A manufacturer licence authorises production of gambling devices in the state, while a distributor licence covers the sale, distribution and marketing of such equipment.
Under the planned arrangements, Universal Entertainment subsidiary Aruze USA will make a credit facility of up to $25m available to UDN at an annual interest rate of 5.12%.
The facility runs through December 2035, with UDN shares pledged as collateral. Universal Entertainment will also license its gaming equipment intellectual property to UDN for $100 per unit shipped and provide development, manufacturing, accounting and administrative services at direct cost plus a 6% margin.
The group intends to consolidate UDN despite initially holding no voting rights. Its agreement allows Tomohiro Okada's entire stake to be transferred to Universal Entertainment or a designated third party at the lender's discretion for the original subscription value.
Universal Entertainment treated the arrangement as equivalent to a controlling-shareholder transaction because of Okada's ownership. Okada did not participate in the board deliberation, while the other eight directors unanimously approved the transactions after opinions were obtained from five independent outside directors.
The move marks a return to a sector with historical links to the group. Universal Entertainment's predecessor acquired Aruze USA in 2000 and obtained a renewable Nevada gaming machine manufacturer's licence in 2006. Its former US gaming equipment operations later separated from the group.
Universal Entertainment's diversification push follows stronger first-half 2026 results, when revenue rose 23.1% to JP¥76.57bn ($483m), supported by domestic amusement equipment despite continued pressure at Okada Manila.
UDN's name echoes Universal Distributing of Nevada, the Nevada business established in 1983 that later became Aruze Gaming America, although the new UDN is a separately incorporated 2026 entity
