Changes in regulations governing gaming machines

「Going forward, from November 2026 onward, the introduction of models equipped with the new "normal-play flags" game mechanic and the launch of 4 new category labels indicating pachinko machine performance and ease of play are scheduled.」

「The pachinko market was expected to be revitalised by the arrival of machines equipped with the new game format “Lucky Trigger 3.0 Plus,” but operating conditions have not improved, and the market environment remains challenging.」

「Smart pachinko machines also appeared from April 2023, and the widespread adoption of smart gaming machines finally began to gather pace.」

「In the pachinko and pachislot industry, the new-standard 6.5-generation pachislot machines introduced from June 2022 are gaining adoption, and operating conditions for pachislot, which had remained sluggish, are showing improvement. In addition, smart pachislot machines being introduced sequentially from November are achieving operating levels that meet parlour expectations, and conditions in the pachislot market are steadily improving.」

「Following the transition to machines compliant with the new regulations, the pachislot market, which had remained sluggish, saw 6.5 machines with expanded game mechanics begin to gain widespread adoption. Their utilization has met parlors' expectations and is making a significant contribution to the recovery of the pachislot market. In addition, the arrival of smart pachislot in November is expected to drive further improvement in market conditions.」

「In the pachinko and pachislot industry, removal of old-regulation machines by the end-of-January 2022 deadline under the amended gaming-machine regulations resulted in a certain level of replacement demand for new-regulation machines, and total pachinko and pachislot unit sales exceeded the previous fiscal year's level.」

「In the pachinko and pachislot industry, replacement with new-regulation machines is proceeding toward the end-of-January 2022 removal deadline for old-regulation machines.」

「With only approximately six months remaining until the installation deadline for machines approved under the old regulations following the revision of the gaming machine regulations,」

「Under these conditions, the installation deadline for old-regulation machines following the amendment of the gaming-machine regulations is the end of January 2022, and parlors are being pressed to replace them with new-regulation machines.」

「As the installation deadline for machines approved under the old regulations approaches within one year following the revision of the gaming machine regulations, the need to accelerate the replacement with machines approved under the new regulations has become pressing.」

「Following changes to the "technical standards interpretation," the full-scale introduction of so-called new-interpretation-standard machines featuring gameplay not seen before is progressing. Fans and parlors are showing growing expectations for these machines, and planned replacement of machines compliant with the old regulations is progressing in line with the removal deadlines set by industry associations.」

「Against this backdrop, the amended gaming-machine regulations that took effect in February 2018 were amended and implemented again in May 2020, extending the removal deadline for old-regulation machines by 1 year.」

「In December 2019, the National Police Agency notified the industry of changes to the "Standards for Interpreting Technical Specifications," which took effect in January 2020. Following the establishment of internal rules by the Nippon Amusement Machine Industry Association, pachinko machines with a greater variety of game mechanics than before could be developed. The release of pachinko machines adopting these game mechanics from April 2020 onward is expected to help revitalize the market.」

「Under the amended gaming-machine regulations that took effect in February 2018, the old-regulation machines currently installed were to be removed by the end of January 2021, completing the transition to new-regulation machines.」

「In the pachinko and pachislot industry, the amended gaming-machine regulations took effect in February 2018, leaving fewer than 2 years until the end of January 2021, when the old-regulation machines currently installed would fully transition to new-regulation machines.」

「The amended gaming-machine regulations took effect, and fewer than 2 years remained in the transitional period before the pachinko and pachislot machines installed in the market would fully transition to new-regulation machines.」

「In the pachinko and pachislot industry, nearly a year after the revised gaming machine regulations took effect on 1 February 2018, machines compliant with the old regulations, which could still be sold for the time being, and newly compliant machines under the new regulations were being sold concurrently. During the cumulative third quarter of the fiscal year under review, the group was the first in the industry to launch pachinko machines with settings, newly permitted under the new regulations, and subsequently accumulated a track record of passing type testing for machines compliant with the new regulations. Including machines compliant with the old regulations that could still be sold, it launched 8 new pachinko titles and 2 pachislot titles.」

「In the pachinko and pachislot industry, machines compliant with the revised gaming machine regulations, which took effect on 1 February 2018, finally began passing type testing and were launched into the market.」

「In the pachinko and pachislot industry, the "Regulation Partially Revising the Enforcement Regulations of the Act on Control and Improvement of Amusement Business and the Regulations on the Certification and Type Testing of Gaming Machines," commonly known as the revised gaming machine regulations, took effect on 1 February 2018. Machines currently installed at pachinko parlors that comply with the old regulations may remain in operation for up to 3 years under transitional measures, and machines already compliant with the old regulations may continue to be sold for the time being. However, because machines compliant with the new regulations that have been submitted for and passed type testing after the revised regulations took effect have lower total payout capacity than before, it has been difficult to predict how players will respond, and pachinko parlors, the group's customers, have tended to postpone decisions on purchasing and replacing machines. Meanwhile, machines compliant with the new regulations are expected to be mainly types that are easier to play than before, and may introduce new gameplay features such as pachinko machines with settings. As a result, gaming machine manufacturers have been actively submitting type applications, and compliant models have already begun to emerge.」

「The revised gaming machine regulations were promulgated in September 2017 and took effect on 1 February 2018. Machines compliant with the old regulations will be replaced sequentially with machines compliant with the new regulations during the 3-year transitional period.」

「As a result, our customers, the pachinko parlours, will gradually replace machines compliant with the regulations before the amendment with machines compliant with the amended regulations during the 3-year transitional period. However, because it is difficult at this stage to predict how fans will respond to machines compliant with the amended regulations, they have postponed decisions on reviewing the mix of existing machines installed.」

「As a result, our pachinko parlor customers need to gradually replace machines complying with the current regulations with machines complying with the revised regulations during the 3-year transitional period, but they are taking a cautious approach to machine purchases because the outlook is uncertain.」

「As part of these efforts, in July the National Police Agency published a draft amendment to the regulations concerning the enforcement of the Act on Control and Improvement of Amusement Business and the regulations concerning the certification and type inspections of gaming machines, commonly known as the draft amendment to the gaming-machine regulations. The amendment was scheduled to take effect on 1 February 2018.」

「In the pachinko and pachislot industry, the entire industry worked from January 2016 to collect and remove by the end of December that year pachinko machines that may have performance characteristics different from those of the machines approved in type inspections. From April onward, manufacturers began full-scale sales of new-standard machines compliant with the voluntary regulations related to this matter and encouraged pachinko parlors to replace the affected machines with new-standard machines.」

「The urgent issues are the collection and removal by the end of December 2016 of the "pachinko gaming machines whose performance may differ from that of the machines approved in inspection," and the development and adoption of new-standard machines complying with various voluntary industry restrictions introduced from spring onward. Pachinko manufacturers are focusing on accelerating the collection and removal of affected models and supplying replacement models.」

「On 27 June, the 21st Century Association for the Promotion of Healthy Pachinko and Pachislot, comprising 14 industry associations, issued a "Statement on Promoting Soundness in the Gaming Industry." The statement set out a policy of collecting and removing by year-end pachinko machines that may differ in performance from their certified specifications, as well as efforts to create an environment where people can enjoy gaming in a familiar, accessible and secure manner. It also called on gaming machine manufacturers to develop a diverse range of easy-to-play machines.」

「The development, manufacture and sale of gaming machines, the group's principal business, are subject to various laws, regulations and standards, including the Act on Control and Improvement of Amusement Business, and require strict compliance with them.」