Even if you are an avid gambler, there’s still a good chance you have never heard of pachinko. However, if you ever traveled to Japan, it’s impossible not to know the word. パチンコ in the local language, has turned into an industry that’s worth over $200 billion yearly. If you need a reference, that’s around 30 times the total gambling expenditure in Las Vegas and Macau combined. Oddly enough, the game has its origins in candy stores and children’s entertainment. Pachinko’s history and development are fascinating and it’s future seems to be intertwined with integrated resorts. Does this all mean a new step for the traditional gambling game?

What is Pachinko? 

The best way to describe pachinko to someone who has never seen or tried it is “pinball with extra steps”. While Pachinko is based on pinball game concepts it is a bit more complex. The general idea is straightforward, the player throws a ball on the board and bumps it into pins to alter the trajectory. The aim is to make the ball reach certain targets on the board with higher rewards. Modern pachinko machines often include integrated games, similar to video slot type games.

Pachinko Originates in Chicago

Yes, Japan’s most popular game is not a local invention.“Corinthian Bagatelle” was the original name for the game. Invented in Chicago, the game was exported to Japan as entertainment in candy stores. Children could enjoy the game to win candy based on results. The initial name was “pachi-pachi” a reference to the sound the game was making when played. 

The first parlor dedicated to pachinko games opened in Nagoya as early as 1930. Slowly, the industry grew, and it skyrocketed in 1936 when more than 36 parlors opened in the Kochi prefecture alone. The China War and WWII put the pachinko industry on pause. However, the aftermath of WWII helped pachinko reach new levels.  

Accounting for 5.6% of Japan’s GDP

By 1953, there were almost 390,000 registered parlors in Japan. That translated to three pachinko parlors per square kilometer. Of course, the parlors evolved across the years. Despite a drop in numbers, the revenue brought by pachinko games continued growing. In 1999, it was estimated that pachinko accounted for 5.6% of the GDP. Nowadays, pachinko revenue accounts for 4% of the Japanese GDP, and there are no signs of slowing down. 

The proposed integrated resorts, with casino services on the premises, could positively influence the pachinko industry. However, since these resorts mainly target foreigners, it’s unlikely that there will be an increased interest in the traditional Japanese game. Casino industry experts, CasinosNavi, have detailed the proposed integrated resorts and their possible effects on pachinko. 

Pachinko Avoiding the Nationwide Gambling Ban

A crucial chapter in pachinko’s incredible growth and evolution in Japan is avoiding a strict gambling ban that started in 1907. Pachinko falls under a gray area according to the law. It does have aspects of a skill game. There are techniques that can provide better outcomes. However, since the ball trajectory is highly unpredictable, the game can also be considered one of chance and therefore gambling. The final argument was that practice could help players get better results. However, parlor owners would tinker with the pins to make the game unpredictable.

Defining pachinko as a skill or gambling game was a problematic issue, but the way rewards/winnings were handled was most important. The law bans games that offer money as a direct reward. Pachinko parlors began offering tokens that had no actual value as payout for winning. These tokens could be sold outside the parlor at another location. This quirk allowed the game and parlors to remain in operation. 

If anything, Japan’s harsh stance on gambling helped pachinko spread in popularity. Since it was the only game allowed, many gamblers replaced their favorite casino games with pachinko. Today, there are almost 8 million pachinko players in Japan. That figure represents more than 6% of the population. 

Most of the players don’t treat pachinko as a game. It’s a daily activity for some, and there are even people who make a living from playing pachinko. In a survey from 2016, it was revealed that the game accounted for almost half of Japan’s leisure activity spending.

Reinventing the Game: Attracting Younger Players

The pachinko player base has been declining of late. Since most are already in their late 50s, the demographics are not in favor of the game. The popular game’s operators are attempting to reinvent the game to attract new players. Combining the classic pachinko gameplay with slot machines has managed to make the game popular among younger audiences. The result, often called pachislot, is growing in popularity in Japan. 

Despite reaching out to a younger audience, pachinko has taken other unexpected hits to popularity. The smoking ban enacted in April 2020 led to a new drop in players. Considering that over 50% of pachinko players are smokers and smoked while enjoying the games, it represents a severe threat to the game. 

However, the no-smoking law may not be that bad for pachinko. There’s a good chance that the absence of smokers and the friendlier atmosphere in the parlor would make non-smokers give the game a chance.