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Pachinko

Japanese arcade gambling game

  • 15 min read
  • 8 chapters

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Through Japan, De facto and de jure and Gross domestic product

Pachinko parlors are widespread in Japan, and usually also feature a number of slot machines (called pachislo or pachislots); these venues look and operate similarly to casinos. Modern pachinko machines have both mechanical and electrical components.

Gambling for cash is illegal de jure in Japan, but the widespread popularity of low-stakes pachinko in Japanese society has enabled a specific legal loophole allowing it to exist. Pachinko balls won from games cannot be exchanged directly for money in the parlor, nor can they be removed from the premises or exchanged with other parlors. However, they can be legally traded to the parlor for so-called "special prize" tokens (tokushu keihin (特殊景品)), which can in turn be "sold" for cash to a separate vendor off-premises. These vendors (ostensibly independent from, but often owned by, the parlor owner) then sell the tokens back to the parlor at the same price paid for them—plus a small commission, creating a cash profit—without technically violating the law.‍

By 1994, the pachinko market in Japan was valued at ¥30 trillion‍ (nearly US$300 billion; equivalent to $570 billion in 2024‍). In 1999, sales and revenue from pachinko parlors contributed 5.6% of Japan's ¥500 trillion GDP, and they employed over 330,000 people, 0.52% of all those employed in Japan.‍ However, the sales amount of these pachinko parlors is calculated based on the total amount that customers rented pachinko balls from pachinko parlors. It is said that on average, about 85% of the money spent by customers in pachinko parlors is returned to the customers, so the sales of pachinko parlors are said to be about 15% of the statistical amount.‍ In 2015, Japan's pachinko market generated more gambling revenue than that of Macau, Las Vegas, and Singapore combined.‍ Pachinko gambling's grey-market nature and tremendous profit historically resulted in considerable infiltration by yakuza, who used it as a vehicle for money laundering and racketeering.

Since the 1990s, however, this has been less of an issue due to police crackdowns.‍ There were over 7 million pachinkos around the world in 2018 with more than half of them being in Japan.‍ In recent years, the pachinko market (the total amount of pachinko balls rented by customers from pachinko parlors) and the number of pachinko parlors in Japan have both continued to decline. The market size in 2022 was ¥14.6 trillion, less than half of the ¥35 trillion in 2005 when the market was at its peak, and the number of pachinko parlors in 2022 was 7,665, less than half of the 18,244 in 1997, when the number of parlors was at its peak.‍

Following a number of years of decline of parlours and machines, the number of pachinko machines in Japan dropped to around 2.5 million by the end of 2019.‍

Description

A pachinko machine resembles a vertical pinball machine, but is different from Western pinball in several ways. It uses small (11-millimetre (2⁄5 in) diameter) steel balls, which the owner (usually a "pachinko parlor", featuring many individual games in rows) rents to the player, while pinball games use a larger, captive ball.

The player loads one or more balls into the machine, then presses and releases a spring-loaded handle, which is attached to a padded hammer inside the machine, launching the ball(s) into a metal track. The track guides the ball over the top of the playing field; then when it loses momentum, it falls into the playing field.

The playing field is populated by numerous brass pins, several small cups into which the player hopes the ball will fall (each catcher is barely the width of the ball), and a hole at the bottom into which the ball falls if it does not enter a catcher. The ball bounces from pin to pin, both slowing its descent and deflecting it laterally across the field. A ball that enters a catcher triggers a payout, in which a number of balls are dropped into a tray at the front of the machine.‍

Many games made since the 1960s feature "tulip" catchers, which have small flippers that open to expand the width of the catcher. They are controlled by the machine, and may open and close randomly or in a pattern; expert players try to launch a ball so it reaches the catcher when its flippers are open.‍

The game's object is to win as many balls as possible, which can be exchanged for prizes. Pachinko machines were originally strictly mechanical, but have since incorporated extensive electronics, becoming similar to video slot machines. Another type of machine often found in pachinko parlors, called a "pachislot", does not involve steel balls, but are loaded with tokens or coins and trigger reels comparable to those of a traditional slot machine. Online casinos also offer "pachislot" games to tailor their product to the Japanese market.

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