TOKYO — The Japan Pachinko Association (NICHIYUKYO), the nation’s sole cross-industry organization comprising parlor operators, manufacturers, and distributors, has signaled a historic shift. At an extraordinary general meeting on January 14, Chairman Takuro Nishimura (President of Nittaku Group) reinforced the urgent need for “cashless” integration, framing it for the first time as a strategic driver of the industry’s Responsible Gaming (RG) strategy.
Nishimura previously advocated for cashless systems to escape the Pachinko industry’s “Galapagos” status—a term referring to the industry’s isolated development where cash remains king despite the broader Japanese society’s shift toward digital payments. However, in his first public address of 2026, he pivoted to a more rigorous narrative: “It is crucial for the entire industry to align in utilizing digital tools for addiction prevention. By promoting cashless systems, we can accurately track a customer’s ‘Pay-Ins’ and ‘Pay-Outs’ .”
Since late 2022, operators had been forced into massive capital expenditure for the transition to “Smart Machines” (touchless ball pachinko unit and medal-less pachislot unit). Exhausted by these costs, many are now skeptical of further investment in cashless infrastructure. Acknowledging this fatigue, Nishimura nevertheless used unusually stern rhetoric, countering: “Incurring costs is an investment in our future. Any industry or enterprise that fails to invest in its future is destined to decline.”
In his New Year’s message for the Nichiyukyo association magazine, Nishimura added: “Through digitalization, we can provide a safer environment for our guests. For instance, if a cashless system allows us to track spending, we can intervene early when a player shows signs of problematic behavior.”
From “Voluntary Self-Control” to “System-Driven Tracking”
While no official blueprint has been released, the system’s immediate goal is likely to digitize the current analog tasks of Responsible Gaming Advisors—who currently monitor and counsel players registered in “self-exclusion” or “family-exclusion” programs. This provides a safety net for those already seeking self-control.
However, the phrase “early intervention” for those leading to addiction implies a more radical future. To achieve this, the industry may eventually need to track the net loss (Pay-Ins minus Pay-Outs) of even “unaware” players—those who do not yet recognize their own problematic gambling behavior and are not registered in exclusion programs. This would effectively necessitate mandatory membership card insertion for all play, combining both cash and digital transactions into a single verified ID profile.
Such a move would strip the “anonymity” that has long characterized Pachinko. Yet, precedents exist. In Japan’s public sports betting (horse/boat racing), where over 80% of sales are now online, every wager is linked to a verified account.
Globally, the trend is clear. In Australia, states like Tasmania are moving toward mandatory player cards with pre-set loss limits. In Mexico City, land-based casinos have already prohibited cash-on-machine play, requiring players to fund verified cards at the cage, enabling full behavioral tracking.
Structural Barriers and Legal Constraints
The “Anonymity” Factor & The Legal Barrier to Incentives
Unlike global casinos where “Player Tracking” is a standard marketing tool, the Japanese Pachinko industry has historically operated on a “walk-in, play-anonymously” basis. This anonymity is a core pillar of Pachinko’s identity.
Crucially, unlike international casino operators who use “Comps” to incentivize players to use membership cards, Japanese law strictly prohibits Pachinko operators from providing any cash-equivalent incentives or excessive premiums to customers. Without the ability to offer “Comps,” operators have no carrot to dangle in exchange for player data.
Consequently, moving away from anonymity is not merely a technical shift; it is a fundamental disruption of the player experience. Industry insiders warn of player backlash, as customers may perceive mandatory tracking as ‘all surveillance and no reward,’ potentially leading to a partial exodus of the customer base.
The Structural Dilemma: No Incentive for Voluntary Adoption
The “cashless” mandate may require replacing or upgrading millions of “Sand” units (peripheral devices next to machines), presenting a massive Capital Expenditure (CAPEX) challenge. Beyond the initial investment, operators would face ongoing transaction fees—a new running cost in an industry previously dominated by zero-fee cash transactions. For smaller operators already exhausted by recent hardware mandates, these combined costs represent a severe threat to profitability.
In an environment where cashless adoption is voluntary, there is virtually no incentive for operators to switch. A parlor that remains “cash-only” avoids these fees and can offer better value to its customers than a “cashless” competitor burdened by digital overhead. Unless the government or the association makes it a universal mandate, the industry’s shift to cashless for “addiction prevention” is unlikely to gain traction, as it forces operators to choose between social responsibility and economic survival.
text by Tanaka Tsuyoshi