Kazuo Okada’s legal troubles have not gotten in his way in California, where his Aruze Gaming America has been awarded a license to continue to supply slot machines to the state’s multibillion-dollar tribal casino market.
The Japanese billionaire said he was “pleased” with the award and views it affirmation of his suitability in the industry, which has been called into question as a result of a high-profile legal tussle with Wynn Resorts, where he was ousted as a director and shareholder in connection with his pursuit of a casino in the Philippines.
The state license is in addition to 43 tribal licenses Aruze Gaming holds in California. In all, the company is reported to hold about 150 gaming licenses, including multiple tribal gaming licenses in several US states.
Aruze Gaming America is separate from Aruze USA, the wholly owned Nevada subsidiary of Mr Okada’s Tokyo-based, JASDAQ-listed Universal Entertainment, which is under investigation by the US Justice Department and Philippine authorities over payments Universal made to individuals in the island nation allegedly to secure favorable treatment for the Philippines casino project.
Tina Littleton, executive director for the California Gambling Control Commision, said it will continue to monitor the federal investigation. “If there’s any finding of criminal activity, a revocation or other action may take place,” she said.
Mr Okada was a founder of Wynn Resorts and through Aruze USA its largest individual shareholder until an in-house investigation concluded last year that his Philippines activities were a breach of his fiduciary duty as a director of the company and had placed Wynn at risk of violating the US Foreign Corrupt Practices Act, which forbids the bribing of officials by US companies doing business abroad. Aruze’s shares were forcibly redeemed at that time, and Mr Okada has since been removed as a director of Wynn and the company’s Wynn Macau subsidiary.
Mr Okada denies the allegations and is contesting the buyout in state court in Nevada, where Wynn is headquartered.
US authorities have acknowledged that Mr Okada, Universal and Aruze USA are under criminal investigation for possible violations of the FCPA. Wynn is also under FCPA investigation in connection with a large endowment the company made to the University of Macau in 2011, a gift Mr Okada says he opposed as a director.
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