Okura Holdings, the pachinko hall operator, reported lower revenue after closing some of its parlors, and after changes in regulation reduced the gaming element of the machines, reducing their appeal to the public.
Total annual revenue decreased by approximately 6.4% to approximately 8.15 billion yen (about US$76 million) in the July 2018 to June 2019 fiscal period.
“The pachinko and pachislot industry has continued to be affected by the continuous decline in pachinko and pachislot players,” it said. “As pachinko manufacturers’ progress in developing new models that meet the new standards was slower than expected, pachinko hall operators’ selection of machines were limited by the machines available in the market,” it said.
The pachinko industry is expected to shrink further, with stronger pachinko firms adopting aggressive marketing strategies and acquiring smaller rivals, it added.
Okura has sought to cut costs by closing two halls, trimming its expenses by 19.2% over the year.
The Hong Kong Stock Exchange-listed company currently operates 17 halls under trading names Big Apple, K’s Plaza, YouPark, and Monaco. (AGB)