Japan had 6,839 pachinko halls in operation as of the end of December 2023, a fall of 526 halls, or 7.1 percent, from a year earlier, according to a survey of pachinko operators and halls by Yano Research Institute1. The number of pachinko hall operators fell by 228 companies, or 11.1 percent, to 1,825, and the groups they belong to fell by 171 groups, or 10.6 percent, to 1,4471.
Closures in 2022 totaled 774 halls, 639 more than the previous year1. The survey attributes the wave of closures to two factors: the deadline for switching to new machine rules and the COVID-19 pandemic1. Under a 2018 revision of the rules governing pachinko and pachislot machines, operators had to replace all machines that met the old standard with machines meeting the new standard by January 20221. The pandemic then cut customer numbers, and halls that could not afford the cost of the switch were pushed to close, with lower-revenue operators most affected1.
The market began to recover in 2023. Smart pachislot machines, which use electronic data instead of physical medals for play, went on sale from November 2022 and drove a recovery centered on pachislot operations, easing the fall in hall numbers and sales, though closures have not stopped1. New hall openings in 2023 rose by 17 from the previous year to 116, the first time in three years that openings exceeded 1001. New openings were led by major operators, helped by strong smart pachislot performance, but openings of large halls with 1,000 or more machines fell by 4 from the previous year to 17, and have stayed below 10 for more than a decade1.
Smart pachislot machines became popular because of the greater freedom they allow in game and spec design, and they lifted pachislot revenue1. They are popular mainly with pachislot fans in their 20s to 40s, and revenue is recovering mainly on machines carrying anime content that appeals to that group1. For operators, however, introducing smart pachislot requires not only the machines themselves but also units that use the smart medals and new peripheral equipment, and the cost of installing the whole system across a store is high1.
| Item | Latest figure | Change from previous year |
|---|---|---|
| Pachinko halls in operation (end of December 2023) | 6,839 | -526 (-7.1%) |
| Pachinko hall operators | 1,825 | -228 (-11.1%) |
| Operator groups | 1,447 | -171 (-10.6%) |
| Hall closures in 2022 | 774 | +639 |
| New hall openings in 2023 | 116 | +17 |
| New openings of halls with 1,000+ machines | 17 | -4 |
What it means for players
Fewer halls means fewer places to play, and the closures have been concentrated among smaller operators that could not carry the cost of the machine switch1. The halls that remain are more likely to belong to larger operators, and new openings in 2023 were led by major operators1. The machines themselves have changed: halls had to move to machines meeting the new standard by January 2022, and smart pachislot machines, on sale since November 2022, are drawing players in their 20s to 40s1. For anyone visiting Japan, the practical effect is a smaller and more concentrated hall market than before 2022, with the mix of machines shifting toward the newer standard. How pachinko is classified and regulated in Japan is set out in Pachinko: Is It Gambling?, and the wider regional picture is covered in Asian Gambling Games. Machine specifications, including payout rates and settings, are explained in How to Read Pachinko and Pachislot Machine Specs, and the legal position for players is covered in Can I Gamble in Japan?.
What happens next
Yano Research Institute said that in 2024, new banknote issuance will bring fresh investment in equipment, adding to costs, and predicted that closures of companies and halls will continue, centered on small and mid-sized operators with few pachinko machines installed1. The survey covered pachinko hall operators and halls nationwide, using direct visits including online, telephone and email inquiries, and questionnaires, conducted between September and December 20231.
