Gaming tycoon Kazuo Okada out of corporate boards

GAMING tycoon Kazuo Okada was thrown out of the boards of Universal Entertainment Corp (UEC) and Tiger Resort Asia Limited (TRA) in 2017 amid accusations he had committed acts of fraud involving TRA funds.

TRA sued Okada, 76, with the Tokyo District Court and the High Court of the Hong Kong SAR.

Last month UEC had also decided to file criminal complaints and civil lawsuits against Aruze Gaming America, Inc., (AGA), including Okada, seeking compensation of damages for violating patent and other rights.

The suits have been filed in four separate jurisdictions – the United States, Macau, the Philippines, and Hong Kong.

UEC claims that AGA had “illegally used patents on gaming machines belonging to the company to conduct the sales of gaming machines” in each jurisdiction.

UEC Holdings implemented the “organizational realignment” to prevent any unsuitable individual and parties from getting involved in management and stewardship of UEC’s casino-related businesses, including Okada Manila.

The organizational realignment will prevent Okada from having a say in the business as he has lost sight of stringent business rules that gaming firms need to live by: “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.”

Okada is also still under investigation by Nevada regulators for his alleged involvement in fraud activities that negatively impacted Universal and may make him unsuitable for management of a company regulated by Nevada.

UEC officials told media that they had established a new company, Limited Liability Company ABC, set to become the parent company of its three primary outfits – Tiger Resort Asia Limited, Aruze USA, Inc., and a new business entity, UE Technologies, Inc.

The move is meant to prevent potential problems with global casino regulatory bodies that strictly calls for professional conduct from officials of a casino business.

The gaming industry is highly regulated all over the world. Every gaming firm has to prove that it is suitable to conduct such business and it starts with the person in management and its stockholders.