Slot Developer Aruze Gaming To Shut Down Las Vegas HQ In August
LISTEN TO THIS ARTICLE:Next month, Aruze Gaming America will be shutting down its Las Vegas headquarters and terminating the contracts of 100 employees. The company is widely recognized as the creator of popular electronic table games such as Shoot to Win Craps and Go Go Claw, but repeated legal and financial issues have taken their toll.
End of an Era
The Nevada Department of Labor, Training and Corrections requires notice of all employment terminations, and Aruze’s filing suggests that the company will wrap up as of August 18. However, additional specifics are not currently accessible although the decision won’t be a surprise to many in the industry.
The move comes approximately half a year after Aruze initiated a Chapter 11 bankruptcy. At the time of the filing, the company explained that it was prompted by financial restructuring endeavors arising from external influences that were not within its jurisdiction.
The bankruptcy documents presented a compilation of allegations made in a distinct legal case targeting an Aruze shareholder, but it didn’t name names. However, Kazuo Okada, a controversial Japanese businessman and previous investor in Wynn Resorts, holds complete ownership of the company.
In a legal battle spanning multiple years against Steve Wynn, Okada was personally represented by the law firm Bartlit Beck LLP. As a result of a settlement in 2018, Universal Entertainment Corp., established by Okada, received a substantial $2.6 billion payout. But, he never paid the law firm for its involvement.
In January, a court ruling was issued regarding Okada's failure to pay a $50 million fee to the law firm, as stated in the court documents. Consequently, the ruling allows Barlit Beck to recover the loan owed by Okada's company.
Trouble Follows Okada
According to the bankruptcy court records, Aruze possesses additional creditors, such as banks, to which it owes approximately $20.8 million. This is in addition to the $50 million Okada owes Bartlit and the numerous other claims listed in the filings of $1.6 million or less.
Okada had previously been ousted as the boss of Universal. Later, when a court in the Philippines ruled that his ouster was illegally, he and a group of supporters forcefully took over Universal’s Okada Manila property in the country.
That coup has brought new trouble upon Okada. A Philippine court judge has now ordered his arrest as part of the endless saga.
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