Aruze Gaming Global has received a conditional green light from Nevada regulators, with the state’s Gaming Commission voting 4-1 to grant the company a five-year limited license rather than the unrestricted license it had sought. The decision reflects ongoing apprehension about the firm’s financial situation and a pending federal lawsuit that questions the integrity of its ownership and operations.
The manufacturer of slot machines and gaming systems—also known as AG2—will be required to return to the Nevada Gaming Control Board and Commission by July 2030 to seek license renewal. The limited term mirrors a previous two-year license issued in 2023 to Empire Technological Group, the parent company that acquired Aruze’s assets out of bankruptcy. The same five-year restriction was also applied to Aruze President Linyi (Frank) Feng and company Director Tiehui Qiu.
Legal Dispute and Ownership Concerns Weigh on Decision
At the heart of the Commission’s hesitancy is a federal lawsuit filed by Hong Kong-based Paradise Entertainment Limited. The company, led by controlling shareholder Jay Chun—Feng’s brother-in-law—claims copyright violations and argues that it had an exclusive business arrangement with Empire. Aruze, in turn, has denied these allegations, asserting that Paradise has no ownership rights over Empire and therefore no say in its acquisition of Aruze’s assets.
Commissioner Rosa Solis-Rainey cast the lone dissenting vote, objecting to the license entirely. “I have been concerned about what’s been possibly misrepresented to us, and that’s always been the reason for my discomfort,” she said. “He may have paid that back, but he still misrepresented where that came from when asked a direct question. I don’t think the applicant before us has been completely forthright with us.”
Former Nevada Supreme Court Justice and Commissioner Abbi Silver echoed caution, saying, “There are serious allegations in this federal complaint. If they are true, than to me Mr. Feng is not suitable, at least not in my opinion… That’s why a five-year limitation is appropriate with the case because you can’t tell what’s going on.”
Attorney Scott Scherer, representing Aruze, countered by stating that Paradise has already abandoned any claim of ownership in Empire. “They can’t have it both ways,” Scherer argued. He also called most of the lawsuit’s claims baseless, labeling them “wild accusations.”
Silver, however, expressed deeper reservations about the nature of the allegations, particularly claims that Feng used his position at Paradise to divert employees and trade secrets to launch a competing company.
Company Pushes Forward Despite Scrutiny
Despite the controversy, Aruze is pressing ahead with plans to raise $30 million to support operations and future research and development, aiming to complete the funding by the end of 2025. “Over the next couple of years this company will be very successful and be a very proud Nevada company in the industry,” Feng stated, adding that he’s willing to sell personal real estate assets to support the business if needed.
Commissioner Brian Krolicki acknowledged the company’s growth potential but defended the limited license safeguard. “You are a good company… But our responsibility is to make sure our licensees are in a good place,” he said.
Source:
“Seeking unlimited Nevada license, Aruze Gaming granted five years”, cdcgaming.com, Jul 27, 2025
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