Service Games of Japan

Service Games and Nihon Goraku Bussan

As Service Games expanded, it began to attract attention from the US and Japanese governments. While the company had managed to get out of charges of bribery and tax evasion, between 1959 and 1960, Service Games was banned from US air bases in Japan and the Philippines. On May 31, 1960, Service Games of Japan was formally dissolved. A few days later, on June 3, two new companies were established to take over its business activities: Nihon Goraku Bussan and Nihon Kikai Seizō. Kikai Seizō, doing business as Sega, Inc., focused on manufacturing slot machines, while Goraku Bussan, doing business under Stewart as Utamatic, Inc., served as a distributor and operator of coin-operated machines, particularly jukeboxes. As part of the operations move, the two new companies purchased Service Games of Japan's assets. Bromberg and Bromley sold Service Games Hawaii in 1961 for a price of US$1.4 million, while retaining the name. Kikai Seizō and Goraku Bussan merged in 1964.