Japanese gaming conglomerate Sega Sammy Holdings says it wants to become a “comprehensive casino solutions provider” in order to build a new foundation for business while establishing gaming as the company’s third core pillar. Development of the group’s gaming arm is also becoming more important given that the pachislot and pachinko machine market on which it has relied upon so heavily in the past has continued to shrink, according to Sega Sammy’s President and Group CEO, Haruki Satomi.
The heir to the Sega Sammy throne, built by his father Hajime, outlines his plans for the company in comments contained within Sega Sammy’s 2025 Integrated Report, released this week.
“The global casino market represents an enormous opportunity,” Haruki states.
“In addition to physical casinos, online gaming is being legalized in many parts of the world, leading to a rapid expansion of markets such as online sports betting and iGaming. This is leading to increased demand for comprehensive solutions that integrate physical and online gaming. Integrating the management resources of our recent acquisitions Stakelogic and GAN with the existing businesses developed by the Sega Sammy Group allows us to offer our services to physical and online casino operators.
“Leveraging these strengths, we will strive to be a comprehensive casino solutions provider in the future and build a new foundation for business. Through these initiatives, we will continue to establish the segment as Sega Sammy’s third pillar of business.”
Haruki added that Sega Sammy Creation (SSC) – the group’s gaming supplier arm – had over the past year achieved its first profit since foundation in 2013, aided by its hit US slot machine release “Railroad Riches”, as well as improved visitation at Paradise City – the Korean integrated resort of which Sega Sammy owns a 45% stake. The company’s interest in Paradise City was recently transferred to SSC as part of an organizational restructuring.
“With those factors, the newly established Gaming Business is off to a good start,” he explained.
Haruki also outlined the group’s new medium-term plan, titled “Welcome to the Next Level!”, which sets quantitative targets of more than JPY230 billion (US$1.5 billion) in cumulative adjusted EBITDA and an average ROE above 10% over the three years from the fiscal year ended March 2025 through the fiscal year ending March 2027.
The plan will see Sega Sammy’s pachislot and pachinko machine business continue to serve as its foundation for revenue while directing renewed focus on both the gaming and the entertainment contents (video game) business for growth.
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