Mississippi regulators renewed the gaming license of Universal Entertainment chairman Kazuo Okada (pictured) on Thursday, but the renewal came with strings attached.
The Mississippi Gaming Commission (MGC) voted to approve the ‘suitability’ of Okada and Universal’s US gaming device subsidiary Aruze Gaming America, but only on the condition that a Federal Bureau of Investigation probe into Universal’s activities in the Philippines fails to turn up any dirty laundry.
The hearing came one day after the Japan-based Universal announced that the Philippine National Bureau of Investigation had “concluded” its investigation into Okada’s activities in their country. Universal’s local subsidiary, which is building an integrated resort in Manila’s Entertainment City, stood accused of funneling $40m to gaming regulators to obtain land concessions and other favors related to the casino project. Universal has denied allegations of bribery and claimed that the bulk of these payments were made by now ex-employees acting without authorization.
Okada himself appeared at the MGC hearing, making his first public appearance in the US since the brouhaha began several years ago. Okada told the MGC he wasn’t the “bad guy” portrayed in reports by the Reuters news agency and Japan’s Asahi Shimbun newspaper. Universal has sued these media outlets for “biased and unfair reporting.”
MGC member Wally Carter told Okada that the decision to renew the licenses had been made following the MGC’s own investigation, not on press reports. However, MGC executive director Allen Godfrey told Reuters that the allegations were “very concerning to me, but until there is something I can hang my hat on I can’t act.”
The statement Universal issued on Wednesday mentioned that its Aruze subsidiary had received a grand jury summons it “inferred” to be related to the US Department of Justice’s “suspicion” of bribery but Universal believed this matter would be dropped due to a lack of evidence. The allegedly illicit cash paid to Roldofo Soriano, an associate of then PAGCOR chairman Efraim Genuino, was transferred via Aruze bank accounts.
OKADA’S TROUBLES IN JAPAN NOT OVER
On Wednesday, Universal stated that similar bribery charges filed with the Tokyo District Public Prosecutors Office had been dropped in December. But Reuters is now reporting that Japan’s tax authorities are looking at how Universal accounted for the $40m in disputed payments.
Hong Kong’s Independent Commission Against Corruption is also conducting a criminal investigation into the matter, due to the payments having moved through Hong Kong bank accounts. Neither agency is publicly commenting on the status of the probes.
