Japan proposes cutting pachinko payouts in half

Japan’s struggling pachinko industry is reeling from fresh rumors that players’ current maximum allowable winnings will be cut in half.

Shares in Japan’s pachinko operators took a tumble this week after local media reported that the government planned to impose further reductions in player payouts. A report in the Japan Times suggested the National Police Agency (NPA) plans to cap the maximum pachinko profit for an average four-hour playing span from the current ¥100k (US $877) to below ¥50k.

The NPA is reportedly preparing to issue a draft of new regulations for entertainment businesses that will be subject to public comment prior to being formalized. The draft proposes lowering the number of pachinko balls that can be won over a four-hour span by about one-third, while the maximum number of balls generated by a jackpot would be reduced from 2,400 to 1,500.

The NPA also wants pachinko parlor managers to train employees on how to recognize signs of problem gambling behavior and how to talk to customers regarding activity that appears to be problematic.