Granted five-year Nevada license expansion: Aruze Gaming aims for unrestricted gaming operations
Nevada Gaming Commission Grants Limited License to Aruze Gaming Global
The Nevada Gaming Commission has granted Aruze Gaming Global a limited five-year gaming license, rather than an unlimited one, due to ongoing legal disputes and financial concerns.
The decision comes after a federal lawsuit involving Aruze Gaming Global, Paradise Entertainment Limited, and Jay Chun, who is related to Aruze's president Linyi (Frank) Feng. The lawsuit alleges copyright infringement, with concerns stemming from Paradise Entertainment's control by Jay Chun.
Commission member Abbi Silver expressed concerns about Feng's actions, specifically usurping and taking over, and using his position as president of his brother-in-law's company as a direct competitor. Silver stated that she wants to see the federal lawsuit play out to understand financing from Feng's brother-in-law.
Aruze Gaming Global had pitched for an unlimited gaming license in Nevada, citing plans to raise $30 million in financing for daily operations and future research and development, aiming to finalize this by the end of the year. However, the legal dispute and financial uncertainties have directly impacted the Commission's decision, requiring Aruze to reapply for licensure after the five-year term.
Despite the limited license, Aruze Gaming Global remains a significant player in the gaming industry. The company, a slot machine manufacturer, is owned by Empire Technological Group, which is licensed in more than 150 jurisdictions and has placed more than 500 units in more than 50 casinos in Nevada. Empire Technological Group has about 350 employees globally.
Empire argued that it was not required to seek Paradise's approval to purchase Aruze assets. Paradise Entertainment Limited has dropped any contention in the lawsuit that it owns Empire Technological Group.
The license is subject to renewal by July 2030. Aruze's President Linyi (Frank) Feng and Director Tiehui Qiu also have five-year licenses.
Despite the challenges, Aruze Gaming Global has seen significant growth. Two years ago, its revenues were $16 million to $18 million, but the company achieved $50 million in revenue in its first year running as Aruze Gaming Global, with a projected 50% increase this year.
Commission member Rosa Solis-Rainey voted against the license due to concerns about the separation of the companies and funding issues. Commissioner Silver, however, noted that most accusations raised by the lawsuit have no basis in fact.
In response to the financial challenges, Feng is willing to sell his real estate holdings and put those funds into the business. The company's future remains uncertain, but with the limited license in hand, Aruze Gaming Global will continue to operate in Nevada for the next five years.
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The Nevada Gaming Commission's decision to grant Aruze Gaming Global a limited five-year gaming license raises questions about the company's future financial stability in the business and gaming industry. Despite concerns about ongoing legal disputes and the need for $30 million in financing for daily operations and future investments, Aruze Gaming Global, with itsSlot machine manufacturing subsidiary Empire Technological Group, remains significant with operations and assets spread across numerous jurisdictions and casinos in Nevada.
