Universal Entertainment secures US mfg licenses
Universal Entertainment Corp., the Japan listed gaming company behind Okada Manila, is set to acquire manufacturing licenses in the United States for the equipment and devices it uses for its casino operations.
The move is meant to protect the company should a shareholder or any of its officers become the subject of an investigation and later on be found to be an unsuitable individual, UEC said.
UEC, through its US subsidiary UE Technologies Inc., will engage in the full-fledged manufacture and sale of equipment and gadgets such as player tracking systems, multi-currency bill validators and fully automated casino tables and machines, among others.
The company owns Tiger Resort Asia Ltd. in Hong Kong, which fully owns Tiger Resorts Leisure and Entertainment, which in turn, owns and operates Okada Manila.
This comes as regulators all over the world are cracking down on casino-related businesses. This means that before being given a license to operate, members of the management and shareholders are required to undergo strict screenings on sustainability conducted by the gaming commission serving as the regulatory authorities.
In cases where unsuitable individuals are later on found to be present among management or shareholders, the company may not be able to obtain a license to operate or the license that had already been secured will be invalidated.
“Casino-related businesses are prone to hosting ties to anti-social forces, such as involvement in money laundering. For that reason, operators of those businesses are strictly regulated in countries around the world, and the US is no exception,” UEC said.
Without mentioning its beleaguered former chairman Kazuo Okada -- who has been charged with alleged fraudulent acts, UEC said if a shareholder of the company’s parent who has been cited in violation of governance standards assumes the post of a director of the company, its subsidiaries that operate casino-related businesses such as Tiger Resort Asia Ltd. Aruze USA, and UE Technologies Inc. would not be affected because they have separate licenses.
The company will conduct an intra-group organizational realignment for the purpose of turning the casino businessrelated companies into subsidiaries of the company, it said.
“As such, the company would apply with gaming regulatory authorities in its countries of operation to have such individuals excluded from suitability screenings,” UEC said.
This will allow the company to operate its casino-related operations across the world.