Supplier of casino content and technology Aruze Gaming announced it has filed for bankruptcy in Nevada court as part of a company-wide restructuring plan.
Financial Restructuring Ahead
Aruze Gaming informed investors in a press release that it has filed in the US Bankruptcy Court for the State of Nevada a voluntary petition under Chapter 11 of the Bankruptcy Code, seeking protection to financially restructure the company.
Yugo Kinoshita, global chief executive officer of Aruze Gaming, highlighted the importance of the filing as part of “a critical business strategy” the company was forced to adopt “due to external factors” influencing the situation.
“We fully understand the implications associated with this action, but we believe this is the best way for Aruze to maintain the overall health of our business,” Kinoshita said, adamant that the restructuring “has no reflection on the health of Aruze.”
The casino software and content developer outlined that the filing for protection was the company’s response in the wake of a recent garnishment judgment against it which resulted from a separate judgment against its shareholder.
“We’re proud of the advances we have made to establish Aruze as a casino mainstay,” Kinoshita continued in his comments, confident that the company’s actions will help it protect its brand, legacy and portfolio of games, and eventually emerge as an even stronger business.
Aruze Gaming expressed its intention to continue operating as usual while utilizing the protections granted to any business entity under Chapter 11 to address the relative rights of its creditors, customers and employees in an orderly fashion.
Out of Blue Sky
There was no sign of bankruptcy last month when Aruze Gaming added another high-profile client to its roster of B2B customers in the US as BetMGM chose to enrich its iGaming offering in New Jersey with a selection of Aruze titles, including Ultra Stack Lion, 8 Wealthy Lions and Wolf 500g.
The partnership with BetMGM provided for more Aruze games to be added to the operator’s iGaming platform in the future, with one title, Rock Paper Scissors Instant Win, expected to go live within the coming weeks.
The latest development in the US is in stark contrast to recent events in Europe, where Aruze Gaming opened its first office in mid-January. Located in the Netherlands, the office will become the company’s European headquarters and will serve the growing number of its clients in Europe, the Middle East and Africa to assist the business in expanding its footprint.