“Young people just don't play Pachinko”: how demographic changes have affected one of the most popular yet officially authorized gambling games in Japan
Gross revenue of pachinko operators in Japan in 2023 amounted to a total of 8.2tn yen (about $53.1bn), and the revenue from pachislot machines - 7.5tn yen (approx. $48.7bn).
That's almost half as many as 20 years ago.
At the same time, the number of pachinko halls decreased in 2023 by a 526, and to date, there have been a number of 6 839 establishments.
According to local experts, this trend has been going on for years. Main reason: changes in consumer preferences. Today the whole industry is based on the generation born in the 70-80 years of the 20th century. They were at the peak of the market post (2000 - 2010), when the representatives of this generation were about 30 years old.
The preferences of younger generations have changed markedly. Operators are trying to attract a younger audience through social media promotion and colorful, multimedia gaming machines, but the effect of these efforts remains limited.
Thus, the biggest challenge for the coming years for pachinko operators in the country is very non-trivial: understand how to consistently attract new audiences in the face of major legislative changes and ever-changing trends.