Okura Holdings, a pachinko hall operator in Japan, reported lower revenue for 2019 after closing some of its parlours after changes in regulation reduced the gaming element of the machines, cutting their appeal.
The Hong Kong-listed company operates 17 halls under trading names Big Apple, K’s Plaza, YOUPARK and Monaco.
Total revenue decreased by approximately 6.4 percent, from approximately JPY8.7 billion ($81 million) for FY2018, to approximately JPY8.15 billion for the year ending June 30th, 2019.
“The pachinko and pachislot industry has continued to be affected by the continuous decline in pachinko and pachislot players during FY2019,” it said.
“As pachinko manufacturers’ progress in developing new models that meet the new standards was slower than expected, pachinko hall operators’ selection of machines were limited by the machines available in the market,” it said.
The pachinko industry is expected to shrink further and remain competitive, with stronger pachinko halls acquiring weaker pachinko halls and adopting aggressive marketing strategies, it added.
The group has sought to cut costs by closing two halls, trimming its expenses by 19.2 percent over the year.
Profit for the year attributable to shareholders of the company decreased by 19.1 percent to about JPY601 million.