TOKYO (Reuters) - Gree Inc, Japan's leading social gaming site, said on Tuesday that it will strengthen policing of its content following media reports that regulators may clamp down on Internet games seen to be flouting gambling restrictions.
Gree will work with other social game companies to draft industry guidelines by the end of May, the firm's CEO and founder Yoshikazu Tanaka told reporters.
But even if Japan's consumer agency forces Gree to stop games from prompting users to pay extra for a chance to win special items, it would not undermine its business, Tanaka said.
Gree's shares have slumped on concerns of a regulatory squeeze, dropping by as much as a third in Tuesday trading before rebounding at the close. Rival DeNA Co slid by a similar margin.
(Reporting by Tim Kelly; Editing by Edmund Klamann)