Pachinko

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.

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.

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.

[4] As of 2015, Japan's pachinko market generates more gambling revenue than that of Macau, Las Vegas, and Singapore combined.

[5] 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.

Pachinko machines were first built during the 1920s as a children's toy called the "Corinth game" (コリントゲーム, korinto gēmu), based on and named after the American "Corinthian bagatelle".

Manufacturers in this period included Nishijin and Sankyo; most of these machines available on online auction sites today date to the 1970s.

To play pachinko, players get a number of metal balls by inserting cash or cards directly into the machine they want to use.

The balls fall vertically through an array of pins, levers, cups, traps and obstacles until they enter a payoff target or reach the bottom of the playfield.

Having more balls is considered a benefit because it allows the player to remain in the game longer, and ultimately creates a larger winning chance.

[citation needed] Pachinko machines vary in several aspects—including decorative mechanics, sound, gimmicks, modes, and gates.

During each round, amidst more animations and movies playing on the center screen, a large payout gate opens up at the bottom of the machine layout and the player must try to shoot balls into it.

Most Pachinko machines employ the kakuhen (確変, short for kakuritsu hendō (確率変動) meaning probability change) system, where some percentage of the possible jackpots on the digital slot machine result in the odds of hitting the next jackpot multiplying by a large amount, followed by another spin regardless of the outcome.

Hence, under this system, it is possible for a player to get a string of consecutive jackpots after the first "hard-earned" one, commonly referred to as "fever mode".

Under the original payout odds, the center gate widens to make it considerably easier for balls to fall into it; this system is also present in kakuhen.

Koatari jackpots can result in a kakuhen as per normal operation, depending on the payout scheme of the machine in question.

The main purpose of koatari is so that pachinko manufacturers can offer payout schemes that appear to be largely favorable to customers, without losing any long-term profit.

In addition to being able to offer higher kakuhen percentages, this made it possible for manufacturers to design battle-type machines.

Winnings take the form of additional balls, which players may either use to keep playing or exchange for prizes (keihin (景品)).

The yakuza (organized crime) were formerly often involved in prize exchange, but a great deal of police effort beginning in the 1960s and ramping up in the 1990s has largely done away with their influence.

[6] In Tokyo, the special prize exchange is handled exclusively by the Tokyo Union Circulation [jp] company (known as TUC), which sells pachinko and slot parlors gold slivers in standardized plastic cases, which it buys back from winning customers at its "TUC Shop" windows.

As many of these arcades are smoke-free and gambling is removed, they are popular venues for casual players, newcomers, children, and those wanting to play in a more relaxed atmosphere.

In such arcades, thrifty gamblers may spend a small amount on a newly released pachinko model to get a feel for the machine before going to a real parlor.

[25] Although awarding direct money prizes for it is illegal, parlors may reward players with tokens which can then be sold for cash at nearby exchange centers.

With growing public and political pressure in recent years, since passage of Japan's blanket anti-gambling law in the 1990s, police are more active in regulating parlors.

For example, in May 2005, a parlor in Kanagawa Prefecture reported to the local police that someone had counterfeited their tokens and made off with the equivalent of US$60,000 in cash by trading them in at their nearby exchange center.

[28] Sega Sammy Holdings and Konami are two major license holders for most media mix pachinko machines.

[29] Some original pachinko games were adapted into anime (examples include Bakumatsu Gijinden Roman, Battle Girls: Time Paradox, Rio: Rainbow Gate!, Yoshimune).