A History of Pachinko Industry: From a Peripheral Economy to a Huge Market

Pachinko parlors offer a form of gambling unique to Japan located near train stations, in the suburbs and in other everyday living spaces. Before World War II, pachinko was born as a game for both children and adults to enjoy at outdoor festivals. From its humble origins, it has grown dramatically to become a huge industry with a market size of 30 trillion yen per year.

However, the trajectory of this growth has been marked by a series of difficulties: the short-lived popularity of pachinko machines superseded by new, more exciting models; the intense competition between parlors for customers; the regulations imposed by authorities trying to curb machines’ speculative element; issues related to patent infringements; and organized crime that at times loomed over the money exchange system.

How did the stakeholders in the pachinko business adapt to the regulations and face challenges as they sought the stability and sustainability of their industry? How did pachinko develop from a peripheral economy to become a major industry? Ethnic minority Koreans in Japan, who arrived during the Korean colonial era, are deeply involved in the economic activities of the pachinko industry - how should we understand their involvement in the growth of this huge market?

Drawing on a vast amount of primary and secondary resources from the 1950s to the 1990s, this book sheds new light on the circumstances behind the emergence of the pachinko industry as a huge market force in Japan.