Japan had 6,839 pachinko halls in operation as of December 2023, a decline of 526 halls, or 7.1 percent, from the previous year, according to a survey of pachinko operators and hall counts by Yano Research Institute1. The Tokyo-based research firm published the findings on June 19, 20241.
The number of pachinko hall operating companies fell to 1,825, down 228 companies, or 11.1 percent, year on year. Companies linked through capital ties or other connections formed 1,447 groups, down 171 groups, or 10.6 percent1.
The survey attributes the long decline to two main forces. A 2018 revision of the laws governing pachinko and pachislot machines required operators to replace all machines with models built to the new standards by January 20221. The COVID-19 pandemic then cut into business, and operators that could not afford the cost of the machine transition closed, with lower-revenue operators exiting first1. Closures peaked around the January 2022 transition deadline and continued as customer traffic did not recover, with 774 halls closing in 2022 against 639 the year before1.
New openings have not offset the losses. In 2023, 116 new pachinko halls opened, 17 more than the previous year, marking a third straight year above 100 openings1. New openings of large halls with more than 1,000 machines fell by 4 from the previous year to 17, but stayed above 10 for a third consecutive year1. The report credits the November 2022 debut of "smart pachislot" machines, which use electronic data instead of physical coins, with helping pachislot operations recover and slowing the rate of closures, though net closures continue1. Smart pachislot is popular with players in their 20s to 40s, and operators are recovering business mainly with machines that carry popular anime and other content1.
For operators, smart pachislot requires investment beyond the machines themselves, including smart coin units and other peripheral equipment, adding to the cost of running a hall1. In 2024, the issuance of new banknotes is expected to require upgrades to currency-handling equipment, adding further cost1.
What it means for players
The shrinking hall count means fewer places to play across Japan, and the closures have concentrated among smaller operators and smaller halls. Larger halls with more than 1,000 machines have continued to open, so the halls that remain are increasingly the bigger ones. Smart pachislot machines, which use electronic data rather than physical coins, are the format driving what recovery there is, and the report says they appeal mainly to players in their 20s to 40s. Halls are also facing new equipment costs from the 2024 banknote issuance, which the report expects to weigh most on small and mid-sized operators. How any of this affects machine payouts or the experience inside a hall has not been reported.
What happens next
The report expects closures to continue, concentrated among small and mid-sized operators and among halls with few installed machines, as they absorb the cost of new equipment tied to the 2024 banknote issuance1. No further figures or dates beyond that have been reported.
For background on how pachinko works and how it is regulated in Japan, see Pachinko: Is It Gambling? and Can I Gamble in Japan?. For where pachinko sits alongside other regional games, see Asian Gambling Games and Playing Local Games as a Visitor or Expat.
