Pachinko parlors going bankrupt amid closures

May 27, 2020 | News On Japan

May 27, 2020 (NHK) - Pachinko parlors in Japan are struggling, with some going bankrupt, after the country declared a state of emergency in April and many establishments were asked to stay closed.

NHK has learned through interviews of industry groups and related sources that at least 85 of about 10,000 pachinko parlors have, in effect, gone bankrupt or closed permanently since April.

Tokyo had the most, at 11. Nine were in Hokkaido in the north and six were in Aichi Prefecture in central Japan.

The emergency measure was lifted across the country on Monday, but some businesses are being asked to remain closed. Pachinko parlors have been requested to stay shuttered in Tokyo, neighboring Chiba, some parts of Hokkaido and other regions.

The Tokyo Metropolitan government is offering up to 1 million yen, or about 9,300 dollars, to businesses that follow the request.

But some operators say they pay more than 93,000 dollars in rent alone, and that most are in the red.

More establishments are expected to have difficulty financing operations.

A senior official of an industry group which most Japanese pachinko parlor operators belong to said more than 200,000 people work in the business. He said he's worried about what will happen to their livelihoods if more establishments close.

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