January 30, 2026, may become a historic milestone for the Japanese Pachinko industry. Mr. Yoshio Kimura, who narrowly lost in the 2022 Upper House election, has officially secured a seat through a “kuriage-tousen” (succession to a vacant seat). After consecutive industry-wide efforts in the 2019, 2022, and 2025 elections, the industry has finally succeeded in sending a “Zoku-giin”—a veteran legislator representing specific industry interests—to the National Diet. With approximately two and a half years remaining in his term, this provides a critical window to strengthen the industry’s political advocacy.
Mr. Kimura’s victory was backed by the All-Japan Pachinko Industry Political Federation (Zenyuseiren). This organization consolidates the industry’s political influence and serves as a direct pipeline to the ruling Liberal Democratic Party (LDP) through “occupational branches” (Shokuyiki-shibu). In the Japanese political system, these branches allow businesses and organizations to support the LDP by recruiting party members. By backing “Zoku-giin” through this system, the industry aims to prevent unfavorable regulatory changes and promote necessary legislative reforms.
Issue 1: Ending Discriminatory Treatment in Subsidies and Loans
Regardless of how strictly an individual parlor operator complies with the law, there is a “wall” they cannot overcome alone: the “uniform exclusion clause” in government-affiliated financing and national subsidies. Because pachinko is classified under “Adult Entertainment Business (Category 4)” under the Fueho (Entertainment Business Act), many operators were flatly rejected for COVID-19 relief funds.
The core argument from industry leaders is the need to legally redefine pachinko. Rather than being grouped with businesses that “potentially disturb sexual public morals,” they advocate for it to be recognized as a “Properly Managed Gaming Industry.” Mr. Kimura will be expected to lobby for the removal of economic discrimination caused by this “category error.”
Issue 2: The Labor Shortage and the Foreign Labor Barrier
The severe labor shortage in pachinko parlors is partly a result of political inaction. Currently, international students—who are a vital workforce for convenience stores and restaurants—are prohibited from working in pachinko parlors. This is because “Permission to Engage in Activity other than that Permitted under the Status of Residence” (under the Immigration Control Act) categorically excludes employment at any “Entertainment Business” defined by the Fueho.
Mr. Kimura is a known expert in health, labor, and welfare policies (a “Koro-zoku”). The industry’s urgent task is to establish a legal framework that allows them to secure labor on par with other service industries.
Issue 3: Establishing “Co-existence” with Casinos (Opening in 2030)
The 2030 opening of Japan’s first Integrated Resort (IR/Casino) in Osaka is the largest external shift for the industry. While casinos are regulated by a strict “Special Law” due to their high stakes, pachinko is a “managed gaming” activity.
The technical specifications of pachinko machines are strictly regulated:
- Speed: Machines are limited to firing a maximum of 100 balls per minute.
- Cost: The maximum cost is capped at 4.4 yen per ball.
- Loss Limit: Even if a player tries to lose, the maximum hourly spend is capped at 26,400 yen (approx. $175 USD).
- Payout Limit: Theoretically, the maximum daily win is capped at the equivalent of approximately 400,000 yen (approx. $2,600 USD).
Clarifying this distinction is vital. Without public understanding of these limits, pachinko risks being lumped together with high-stakes casino gambling, potentially leading to excessive over-regulation. The goal is to leverage political influence to stabilize pachinko’s position alongside the new casino industry.
text by Tanaka Tsuyoshi