Pachinko

Pachinko (Japanese: パチンコ; pronounced [patɕiŋko]) is a mechanical game originating in Japan that is used as an arcade game and, much more frequently, for gambling. Pachinko fills a niche in Japanese gambling comparable to that of the slot machine in the Western world as a form of low-stakes, low-strategy gambling. 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...