Market contraction due to declines in the pachinko player population and number of pachinko halls

「このような環境のもと、遊技業界ではスマート遊技機の普及が緩やかに進んでいるものの、スマートパチンコの市場浸透が想定を下回ったことや、部材価格および人件費の上昇を背景に、ホール各社の設備投資に対する慎重な姿勢が続き、市場全体は低調に推移いたしました。」

「According to an announcement by the National Police Agency's Community Safety Bureau, the number of pachinko halls nationwide stood at 6,464 as of the end of December 2025, down 242 from 6,706 at the end of December 2024.」

「Meanwhile, in the gaming industry, the operating environment became increasingly challenging due to the backlash from the previous year's banknote redesign, soaring personnel expenses and increased capital investment in gaming machines and other equipment. At the same time, models equipped with the Smart Pachinko "Lucky Trigger 3.0+" went on sale from 7 July, having a certain positive effect on the adoption of Smart Pachinko.」

「According to an announcement by the National Police Agency's Community Safety Bureau, the number of pachinko halls nationwide stood at 6,706 as of the end of December 2024, down 377 from 7,083 at the end of December 2023.」

「Against this backdrop, although equipment sales increased year on year, the decline in the number of member stores due to market contraction resulted in higher revenue but lower profit.」

「Against this backdrop, although equipment sales increased year on year, the decline in the number of member stores due to market contraction resulted in higher revenue but lower profit.」

「According to an announcement by the National Police Agency's Community Safety Bureau, the number of pachinko halls nationwide stood at 8,458 as of the end of December 2021, down 577 from 9,035 at the end of December 2020.」

「Following the renewed spread of COVID-19, referred to below as the infectious disease, we are continuing business activities after taking stringent measures. However, depending on when the situation is brought under control, we believe that the decline in appetite for capital investment and store closures may accelerate further.」

「Depending on when the situation is brought under control, we believe that the decline in appetite for capital investment and store closures may accelerate further.」

「According to an announcement by the National Police Agency's Community Safety Bureau, the number of pachinko halls nationwide stood at 9,035 as of the end of December 2020, down 604 from 9,639 at the end of December 2019.」

「At pachinko halls, which are our group's main customers, we expect the decline in appetite for capital investment to continue due to uncertainty over the outlook resulting from the removal of machines subject to the former regulations following regulatory amendments and the spread of infectious diseases, and anticipate that a full-fledged recovery will take time.」

「Pachinko halls, which are our group's main customers, also suffered substantial economic losses from the spread of COVID-19 and voluntary business suspensions based on declarations of a state of emergency. We expect the decline in appetite for capital investment to continue due to uncertainty over the outlook, and anticipate that a full-fledged recovery will take time.」

「According to an announcement by the National Police Agency's Community Safety Bureau, the number of pachinko halls nationwide stood at 9,639 as of the end of December 2019, down 421 from 10,060 at the end of December 2018.」

「Meanwhile, at pachinko halls, which are our group's main customers, restraint on purchases of peripheral equipment continued amid an uncertain outlook, as halls replaced gaming machines in response to amendments to the regulations and considered measures to prevent excessive involvement associated with the IR Promotion Act, as well as measures to prevent passive smoking.」

「At pachinko halls, restraint on purchases of peripheral equipment continued amid an uncertain outlook, as halls replaced gaming machines in response to amendments to the regulations and considered measures to prevent excessive involvement associated with the IR Promotion Act, as well as measures to prevent passive smoking.」

「At pachinko halls, which are our group's main customers, the outlook remains uncertain due to consideration of measures to prevent excessive involvement associated with the IR Promotion Act and amendments to and implementation of the enforcement regulations of the Amusement Business Act. Meanwhile, some major and mid-sized companies continue to pursue M&A and open locations in urban areas with large market populations, such as Kanto and Kinki, with the aim of maintaining and improving competitiveness.」

「According to an announcement by the National Police Agency's Community Safety Bureau, the number of pachinko halls nationwide stood at 10,060 as of the end of December 2018, down 536 from 10,596 at the end of December 2017.」

「The operating environment for pachinko halls, our customers, is on a contractionary trend due to tighter regulations, including amendments to the enforcement regulations of the Amusement Business Act implemented in February 2018 and the Basic Act on Measures to Prevent Gambling and Other Addictions implemented in July 2018. Repeated natural disasters also dealt a further blow.」

「The decline in pachinko fans due to the diversification of leisure activities against a backdrop of widespread internet and smartphone use has continued, and conditions remain challenging.」

「At pachinko halls, which are our group's main customers, the operating environment remains challenging, with uncertainty over the impact of amendments to the enforcement regulations of the Amusement Business Act that took effect in February this year and developments concerning the proposed Basic Act on Measures to Prevent Gambling and Other Addictions (Note 1), as well as declining pachinko participation due to the diversification of leisure activities and the established prevalence of low-denomination play.」

「According to an announcement by the National Police Agency's Community Safety Bureau, the number of pachinko halls nationwide stood at 10,596 as of the end of December 2017, down 390 from 10,986 at the end of December 2016.」

「Meanwhile, at pachinko halls, which are our group's main customers, some major and mid-sized companies continue to open locations in urban centers and other areas with large market populations, such as Kanto and Kinki, with the aim of maintaining and improving competitiveness. However, the market is believed to be continuing on a contractionary trend due to ① tighter regulations on highly prize-oriented gaming machines, ② customer attrition resulting from the rise of mobile games and other offerings against a backdrop of widespread smartphone use, and ③ the continued decline in consumer spending per customer accompanying the increase in low-denomination halls.」

「At pachinko halls, which are our group's main customers, some positive activity can be seen. Overall, however, we recognize that the outlook remains uncertain, amid declining pachinko participation due to the diversification of leisure activities, the established prevalence of low-denomination play, and the promulgation of the Regulation Partially Amending the Enforcement Regulations of the Act on Control and Improvement of Amusement Business, etc. and the Regulations on the Certification of and Type Testing for Gaming Machines, from the perspective of measures to address gambling and other addictions following implementation of the Act on Promotion of Development of Specified Integrated Resort Districts (IR Promotion Act).」

「At pachinko halls, which are our group's main customers, some positive activity can be seen. Overall, however, we recognize that the outlook remains uncertain, amid declining pachinko participation due to the diversification of leisure activities, the established prevalence of low-denomination play, and consideration of measures to address gambling addiction following the enactment and implementation at the end of last year of the Act on Promotion of Development of Specified Integrated Resort Districts (IR Promotion Act).」

「According to an announcement by the National Police Agency's Community Safety Bureau, the number of pachinko halls nationwide stood at 10,986 as of the end of December 2016, down 324 from 11,310 at the end of December 2015.」

「In the pachinko industry, which is the destination for our group's sales, the operating environment for pachinko halls remains challenging as they face declining pachinko participation due to the diversification of leisure activities, the established prevalence of low-denomination play, new gaming machine regulations and the issue of removing highly prize-oriented machines. We expect these severe conditions to continue for the time being.」

「As a result, the number of machines sold fell by half from the same quarter of the previous year. In addition, due to market contraction caused by pachinko hall closures and business discontinuations, as well as lower card spending, revenue from all product categories fell below the same quarter of the previous year.」

「However, amid the challenging market environment, the number of machines sold fell significantly below the same quarter of the previous year. In addition, as the market continued to contract without restraint due to pachinko hall closures and business discontinuations, and selling prices declined amid intense price competition, revenue and gross profit from machine sales, card revenue and system usage fees all fell below the same quarter of the previous year.」

「According to an announcement by the National Police Agency's Community Safety Bureau, the number of pachinko halls nationwide stood at 11,310 as of the end of December 2015, down 317 from 11,627 at the end of December 2014.」