Japanese gaming conglomerate Sega Sammy Holdings Inc said Friday it plans to transfer its gaming business – including its 45% stake in Korean integrated resort Paradise City – to manufacturing arm Sega Sammy Creation (SSC) as part of an absorption-style company split aimed at streamlining operations.
Under the “organizational restructuring”, SSC will not only remain as the group’s slot machine manufacturer and supplier but also directly oversee the Paradise City stake, iGaming arm GAN Limited and B2B iGaming content supplier Stakelogic.
SSC had previously operated separately from Paradise City under Sega Sammy Holdings as per the company’s Medium-term Management Plan released in May 2024.
Sega Sammy explained that the organizational restructuring of the company and its group companies was determined in order to “appropriately manage the strategy, financial status, risks, etc of the Gaming Business and build a governance structure that can make quick decisions in response to changes in the environment by transitioning to a structure with SSC as the core operating company, in line with the closing timing of the acquisition of GAN and Stakelogic, which is currently underway.”
It also pointed to the need to establish a centralized management system of gaming licenses and other controls, to improve collaboration among the gaming business locations scattered around the world, and to improve the company’s corporate value by strengthening international competitiveness through a combination of the strengths of each gaming-related company. This, Sega Sammy said, would “maximize segment synergies”.
The restructuring is planned to become effective on 1 June 2025, shortly after the group completes its acquisition of GAN – now delayed until the June 2025 quarter.
Sega Sammy has previously noted that its ownership of a 45% interest in Paradise City, located in Incheon, is aimed to boost it knowledge of the land-based casino industry. South Korea’s leading foreigner-only casino operator Paradise Co holds a controlling 55% stake in the property, which opened in 2017.
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