Let’s take a specific example. As shown in Case 1 in Figure 3, a rule stipulates what constitutes a pachislot or pachinko machine that “could significantly encourage gambling behavior” as set out in the law . According to the rule, to be installed in a pachinko hall, a machine “must not consume more than 400 yen a minute.” In pachinko, one ball costs 4 yen, so the upper limit is 100 balls per minute. Technical standards define this as the “inability to shoot more than 100 balls per minute.” Furthermore, to avoid gaps in interpretation, the technical standards include interpretive criteria that clearly define what this per minute indicates.
Reports Archive
2022.06.27 Report: Deciphering Pachislot and Pachinko Machine Regulation
“Experiences that move the heart” is the value SEGA SAMMY Group has been pursuing that exceed customers’ expectations. We introduce the scenes you can only find here such as behind-the-scenes of the development process, feature articles and others.
- Colorful Chronicles
-
2022.6.27
Deciphering Pachislot and Pachinko Machine Regulation
With this article, we present an overview of the business conditions facing the SEGA SAMMY Group and our actions in pursuit of growth from various angles. This time, we’ll dig into the regulation of Pachislot and Pachinko industry that are not much known.
Have you heard about pachislot and pachinko machine regulations?
The manufacture and sale of pachislot and pachinko machines is a business area that is heavily impacted by regulations. Manufacturers are required to make machines that comply with various rules and regulations centered on Japan’s Law on Control and Improvement of Amusement Businesses (Amusement Businesses Law), aimed at preventing excessive gambling and improper modifications, among other things. New models can be sold only after undergoing multiple approval processes (Figure 1).
Moreover, the pachislot and pachinko industry has taken to establishing voluntary regulations in more specific areas that laws and rules cannot cover, in part for the purpose of ensuring fairness and honesty throughout the industry.
In the pachislot and pachinko machine industry, when and how many machines a company can obtain approval for affects its sales plan. Also, changes to the gameplay of machines arising from regulatory revisions and voluntary regulations have a significant impact on the market environment.
Under such a business environment, at present, sequential revisions to the voluntary regulations that were put in place at the time regulations were revised in 2018 (for the No. 6.0 model) are being undertaken in the pachislot market. Pachislot models in compliance with the No. 6.5 model will reach the market after June 2022. For the new models, the regulations revised the upper limit on the number of games during advantageous section and the method of managing the upper limit on medal pay-out.
Relationship between pachislot and pachinko machines and laws and regulations
Do you know what kind of regulations govern pachislot and pachinko machines? Actually, for a new machine to appear in a pachinko hall, it first has to pass very stringent tests.
First of all, the Amusement Businesses Law prohibits the industry from “installing and operating pachislot and pachinko machines that could significantly encourage gambling behavior.” National organizations such as the National Public Safety Commission stipulate rules, technical standards, and interpretative criteria for applying this statute. Models also need to be examined as to whether they comply with regulations by prototype testing. These efforts foster an environment for offering pachislot and pachinko machines that users can play with peace of mind.
Figure 3 lists just some of the standards, but in this way, numerous detailed rules are systematically defined and put into effect. Moreover, the industry has set voluntary regulations to control the gambling aspects of machines (Figure 3, Case 4). Only pachislot and pachinko machines that comply with such detailed regulations and pass the screening qualify for release to the market.
As multiple responsible parties enforce and regularly revise the various regulations, and through a careful approval process, the pachislot and pachinko machine industry continues to ensure that it runs a clean business.
Overview of the latest voluntary regulations
The key point of the most recent revisions to the voluntary regulations was to change the upper limits of both the number of games during advantageous section and the number of medal pay-out in pachislot. Data shows that 70%–80% of current pachislot players are dissatisfied with the existing upper limits. The revisions sought to resolve this issue. Pachislot machines reaching the market going forward are thus expected to expand the scope of gameplay and give further impetus to the market.
The revisions raised the maximum number of games during advantageous section to 4,000. For “Smart Pachislot,” in which users don’t physically handle medals, the upper limit on games is removed altogether (Figure 4 (A)). The revisions also changed the way of managing the upper limit on medal pay-out, switching from maximum medal yield from the start of jackpot to maximum medal yield from when the player reaches plus and minus zero with medals inserted and paid out. While the limit of 2,400 medals is unchanged, the new interpretation of the voluntary regulations is expected to dramatically change player psychology by enabling machines to be designed so that players always have a chance to win (Figure 4 (B)).
Complying with regulations while achieving user satisfaction
Taking advantage of the improvement of gameplay made possible by the new voluntary regulations, the SEGA SAMMY Group will continue to pursue manufacturing based on user preferences, bringing to market a wide array of models offering compelling gameplay while complying with laws and regulations. We will help to revitalize the pachislot and pachinko market by aiming to generate hit titles across a range of No. 6.5 models in pachislot, encouraging the return of dormant users and drawing in new users.
Going forward, we will continue to take on the challenge of creating value that adds stimulation to everyday life by providing experiences that move the heart through pachislot and pachinko machines.