Japan’s pachinko segment worried about new legislation

The segment is concerned about a potential negative impact from the Gambling Addiction Bill in the US$1.84 billion industry.

Japan.- The casino industry in Japan is almost set after the Legislature passed the pieces of legislation needed to properly regulate it. However, the Gambling Addiction Bill has the pachinko segment worried as it will add up to an already restricted business that used to post yearly revenues of US$1.84 billion.

Early in July, Japanese lawmakers passed the piece of legislation that requires the central government to prepare the basic outline for gambling addiction measures, while local governments prepare the execution plan for said measures. The Law not only covers casino gambling but includes pachinko and other segments. It foresees lower pachinko payouts, which will have players winning and losing more slowly, reducing the excitement around the game.

Not only does the new Law cost the pachinko segment for its reduced activity, but also makes it spend money on replacing a large number of machines. Businesses will have three years in which to comply with the new rules and are worried that the new style of the game will be boring for gamblers.