Good morning. Nothing can last forever. And the pachinko and pachislot industry has been holding on by the skin of its teeth, enduring machine revamps and struggling through the pandemic downturn. New research finds that the situation is unlikely to improve, even with the addition of new “smart” machines. Meanwhile, in Macau, GGR growth is expected not to exceed single-digits for the next two years, as the market continues to focus on premium mass and luxurious hotel offerings. Speaking of, SJM continues to try to increase its attractiveness and could pull a profit this year, leading to dividend payments in 2026.
What you need to know
- Pachinko parlors in Japan will decrease to approximately 5,900 by 2028, with pachinko and pachislot machines dropping to around 3.08 million units.
- UBS sees low single-digit GGR growth in Macau through 2025 and 2026, with premium mass market expansion and new hotel openings driving demand.
- SJM to resume dividend payments only in 2026, despite expectations that the company will return to profitability this year: Morgan Stanley.
On the radar
- Hann Resorts breaks ground on a 10-hectare park as part of $4B Hann Reserve.
- DigiPlus reiterates no imminent plans to develop Boracay IR.
- Australian legislation to limit gambling ads to be pushed back to 2025.
- Galaxy Entertainment sets up memorial area to mourn Lui Che Woo.
- Dynam Japan sees profits rise 22.3% in recent six-month financial period.
- Macau gaming tax reaches $9.11B in first 10 months of the year.
- Macau Legend to contest Cape Verde decision to terminate IR pro.
AGB Intelligence
JAPAN
Pachinko parlors on the decline: Research
The pachinko and pachislot industry in Japan is in decline, with the number of parlors and operating companies predicted to shrink in the coming years, continuing a trend which started in the mid-2000s. The weight of regulatory changes requiring machine updates coupled with the pandemic placed a heavy burden on operators already struggling to attract new customers. The sluggish economy has exacerbated the hit to companies’ bottom lines, despite the introduction of “smart” pachislot machines.
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