We are a large and growing pachinko hall operator in Japan. Libera Gaming
Operations, Inc. was founded in Japan in May 1965 and has been operating
pachinko halls for over 60 years. Pachinko halls provide a venue for customers
to play two types of recreational arcade games: “pachinko” and “pachislot,”
which are played using pachinko balls and pachislot tokens, respectively, for
the purpose of obtaining more balls and tokens and exchanging them for prizes.
Customers can convert some prizes into cash by having independent buyers from
pachinko halls buy them. The pachinko and pachislot industry is highly regulated
under Japanese laws and regulations. Playing pachinko and pachislot machines are
not considered a form of gambling in Japan because customers do not directly win
cash. They win tokens that may be redeemed for prizes, which in turn may be sold
for cash by independent buyers. We have over 60 years of experience in the
pachinko industry, operating eleven pachinko halls in Japan as of November 3,
2025. There are only 161 pachinko hall operators that operate more than ten
pachinko halls out of a total of 1,623 operators in Japan as of 2023, and we are
one of the largest pachinko hall operators as we are in top 10% of all pachinko
hall operators with respect to the number pachinko halls operated (Source:
“Pachinko hall operator survey 2024”, Yano Research Institute). For the years
ended October 31, 2024 and 2023, with respect to our pachinko operation
business, we reported total revenues of ¥5,832,288 thousand (US$40,891 thousand)
and ¥4,874,215 thousand, respectively.
We also operate a real estate business, in which we conduct real estate
redevelopment, property rental and property brokerage. We focus our real estate
business in the central Tokyo area, where we use our experience and our network
of real estate brokers gained through our pachinko and pachislot business to
determine investment decisions with a goal of maintaining a profitable real
estate business. Our main source of real estate revenue is from real estate
redevelopment. We purchase old real estate in the central Tokyo area where we
expect increasing demand in the future and we believe rents and asset values are
unlikely to decline, and we redevelop and renovate the properties by using third
party contractors with a goal to generate higher rental revenue. We believe the
central Tokyo area has many prospective buyers, and therefore we believe that we
can sell the real estate and generate a high profit in a short period of time.
In addition, since we have historically purchased real estate for redevelopment
purposes in what we consider good locations close to train stations in the city
center, we believe we can generate rental revenue during the period between our
purchase of the properties until we begin redevelopment. During the year ended
October 31, 2024, we generated ¥1,152,135 thousand (US$8,078 thousand) from the
sale of one property, and during the year ended October 31, 2023, we generated
¥980,543 thousand from the sale of one property. During the six months ended
April 30, 2025, we generated ¥576,924 thousand (US$4,045 thousand) from the sale
of one property. We believe that the real estate market in Tokyo is relatively
cheaper than other international cities, and as such we expect that more
investors will be attracted to property in Tokyo and the real estate market will
continue to grow in the future.
We also operate a coffee shop and cafeteria in Kanagawa, Japan, through a
Franchise Agreement with KOMEDA Co., Ltd., in which we offer coffee and food to
customers. We believe that “Komeda Coffee” is one of the most popular coffee
chains in Japan. In May 2025, following the purchase of five restaurants from
Arossa Manuel Inc., we started operating restaurants in Tokyo, Japan. There are
two restaurants named Arossa which offer Oceania food in Shibuya and Ginza and
three restaurants named Manuel, which offer Portuguese food in Yotsuya,
Marunouchi and Jiyugaoka. All five restaurants are located in popular areas in
Tokyo, where we expect high demand.
Additionally, in April 2025, we started operating a hotel and spa called ITSUMU
in Iwate, Japan. The Company renovated the historical Japanese style resort in
Iwate which was donated by the local government. It offers traditional Japanese
style rooms, hot springs and elaborate Japanese meals, and targets customers who
are middle-income class and above and international tourists.
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Libera Gaming Operations, Inc. was founded in Japan in May 1965. Our agent for
service of process in the United States is Cogency Global Inc. located at 122
East 42nd Street, 18th Floor, New York, NY 10168. Our principal place of
business is located at 6-25-8 Nishi-Shinjuku, Shinjuku-ku, Tokyo, 160-0023,
Japan, and our telephone number is +81 3-6258-0707. Our website is
www.libera-group.co.jp.
