COVID-19 IS DRIVING JAPANESE GAMBLING VENUES TO BANKRUPTCY

Japan's popular pachinko gambling venues are hit by the COVID-19 pandemic. Analytical data suggests that the gaming business should expect a decline in performance.

The experts estimate that more than 30 companies operating in the market will go bankrupt in 2020. If this happens, the highest level recorded in the last six years will be achieved.

Pachinko are popular mechanic gambling devices that resemble a vertical pinball game.

There is an official ban on casinos in Japan, and the cash sweepstakes are only possible on horse races and in bicycle and boat racing. Winning the game involves receiving some kind of product prizes, which are then exchanged by some players for money in the stores located near the gambling venues.

The Japanese gaming business boomed in the 1990s, with the number of pachinko parlors hitting the record numbers. About 17,000 gambling venues have sprung up in the country, and the game itself has reached up to 15 million Japanese citizens who regularly visit the parlors.   

However, some of the rules of game were subsequently changed and the probability of getting the "winning balls" was limited - the number of the venues began to decrease.

The number of those gambling parlors where the number of slot machines was less than 100 has decreased by 43 since 2015, despite the fact that the quantitative indicators even showed a slight increase (by 9 establishments) over the last year.

At the same time, a number of large establishments with more than 1000 playing mechanisms have only increased.

Over the past year, their number has reached 346, with an increase of 26 establishments. In general, compared to 2015, their number increased by 68.

Despite the noted trend towards the enlargement of the gaming business, the experts from Tokyo Shōkō Research note that the gambling venues bankruptcies are becoming more frequent. Twelve establishments filed for bankruptcy in the first five months of 2020. There were two times less such venues last year. However, it should be noted only three bankruptcies were caused exclusively by the coronavirus pandemic.