Pachinko operations fall in Japan

Licensed operators of Japanese gaming service pachinko are looking for new ways to attract customers.

Japan.- Although the Congress of Japan has already passed a bill legalising gaming, casino operators are not able to begin the bidding process until legislators approve a new series of regulations determining the operating conditions. However, the market has already experienced revenue declines on the already-legal gaming system, Pachinko.

Pachinko operators Okura Holdings reported this week a decrease in revenue of 0.6 per cent for the six months ending December 31, 2017. “Okura said the pachinko industry’s downward trend was caused by increasing competition from other forms of entertainment in Japan and curbs on the industry,” explained the local press. The company has not yet faced the major competition expected in the country – Integrated Resorts.

Furthermore, the National Public Safety Commission of Japan has recently limited the pay-out ability of both pachinko and pachislot machines. As a result, according to Okura: “it is likely that the attractiveness of the pachinko and pachislot machines to customers, especially young customers, and the profitability of the operation of such machines will be adversely affected going forward.”

International brokerage firm Union Gaming estimates that the pachinko market could tighten in the next few years once integrated resorts (IRs) starts operating. It is believed that the government will insist on drawing a line between pachinko and the IR industry.