Since the 1990s, however, this has been less of an issue due to police crackdowns. Pachinko gambling's grey market nature and tremendous profit historically resulted in considerable infiltration by yakuza, who used it as a vehicle for money laundering and racketeering. As of 2015, Japan's pachinko market generates more gambling revenue than that of Macau, Las Vegas, and Singapore combined. It is said that on average, about 85% of the money spent by customers in pachinko parlors is returned to the customers, so the sales of pachinko parlors are said to be about 15% of the statistical amount. However, the sales amount of these pachinko parlors is calculated based on the total amount that customers rented pachinko balls from pachinko parlors. In 1999, sales and revenue from pachinko parlors contributed 5.6% of Japan's ¥500 trillion GDP, and they employed over 330,000 people, 0.52% of all those employed in Japan. īy 1994, the pachinko market in Japan was valued at ¥30 trillion (nearly $300 billion). These vendors (ostensibly independent from, but often owned by, the parlor owner) then sell the tokens back to the parlor at the same price paid for them-plus a small commission, creating a cash profit-without technically violating the law. However, they can be legally traded to the parlor for so-called 'special prize' tokens (特殊景品 tokushu keihin), which can in turn be 'sold' for cash to a separate vendor off-premises.

Pachinko balls won from games cannot be exchanged directly for money in the parlor, nor can they be removed from the premises or exchanged with other parlors. Gambling for cash is illegal in Japan, but the widespread popularity of low-stakes pachinko in Japanese society has enabled a specific legal loophole allowing it to exist. Modern pachinko machines have both mechanical and electrical components.

Pachinko parlors are widespread in Japan, and usually also feature a number of slot machines (called pachislo or pachislots) so these venues look and operate similarly to casinos. Pachinko fills a niche in Japanese gambling comparable to that of the slot machine in the West as a form of low-stakes, low-strategy gambling. Pachinko ( パチンコ) is a mechanical game originating in Japan that is used as an arcade game, and much more frequently for gambling. A modern pachinko machine A pachinko parlor in Tokyo

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