Are Pachinko Taxes On The Way?
Pachinko was once a national past time in Japan that has always fallen into a grey area of the law regarding gambling and taxation and this popular game is now coming under fire again as lawmakers are considering legalizing casinos in Japan.
Pachinko is a combination slot machine and pinball game that is played by around one in six Japanese.
In more recent years, the number of players has begun to dwindle as the younger generations have moved on to playing mobile games on their phones.
Pachinko players are able to claim prizes from their Pachinko winnings which many then be swapped for cash at booths outside the Pachinko halls that are in fact disconnected to these halls and are operated separately.
As the move towards legalizing casinos draws nearer, Pachinko is once again being scrutinized to fall under the planned gambling laws which will see an industry, that to date has not been taxed or regulated, to begin paying taxes.
It is estimated that Pachinko could contribute up to $2 billion dollars a year in tax revenues.
Morgan Stanley recently released a report that predicts that the Japanese casino market could be worth around $22 billion a year although many believe it could be up to $40 billion.
Many of the large Pachinko machine makers including Sega Sammy and Konami are already meeting with casino operators to start gaining knowledge and experience in the casino resort business.