Japan Court Imposes Prison Terms Over Pachinko Gambling Ring
Despite casino-style gambling being illegal in Japan, many have found a legal loophole through the popular arcade game Pachislots
A Nara court has imposed suspended prison terms on four people over a remote pachinko gambling operation that prosecutors said was run from a warehouse in Yamatokoriyama City.
The operation was aimed at Chinese gamblers using a smartphone app. Pachinko, is an arcade game in Japan where players purchase steel balls and attempt to pocket them into winning holes.
According to the Tokyo Reporter, the site housed more than 100 pachinko and pachislot machines fitted with internet-linked cameras, allowing users to place wagers at a distance after transferring funds that were converted into in-app points.
Remote Play, Real Penalties
The Nara District Court handed 14-month sentences, suspended for three years, to a 68-year-old former company executive, a Chinese graduate student, a Chinese warehouse worker and a Chinese woman who later left the site after learning police were investigating.
Local reports said the defendants were treated as accomplices rather than masterminds. The court heard that the operation’s principal organiser, believed to be a Chinese businessman, has not been apprehended.
‘They play like slot machines’
Speaking to GGB in May, Andrew Klebanow of Klebanow Consulting said “Make no mistake about it; Pachislots are electronic gaming devices”.
“They look like slot machines. They play like slot machines.” The stakes are low, and payouts cannot take place in the arcades themselves, but pachinko slots are routinely referred to as “gambling-style” or “hybrid gambling” games.
According to Poi Data, some 8,250 pachinko parlors now operate in Japan, including more than 550 in Tokyo and 400 in Osaka, generating an estimated $8.4 billion in revenue per year.
How the Scheme Worked
Prosecutors said the warehouse set-up was designed to mimic a live gaming floor, with players watching the machines remotely and controlling them through an app.
The operators allegedly took a commission from the wagers over a 15-month period, although the total value of the takings has not been disclosed.
