Japan’s second largest pachinko hall operator, Dynam Japan, saw its revenue decline 4.6% to JPY109.8 billion (US$1 billion) in the nine months to 31 December 2018, with results down in both the high playing cost hall and low playing cost hall segments.
Both segments recorded near identical revenue of around JPY54.9 billion (US$501 million) for the period, although the decrease was more substantial in Dynam’s high playing cost halls at 6.8% compared with 2.2% in low playing cost halls. Likewise, gross pay-ins at high playing cost halls fell 4.0% to JPY330.2 billion while low playing cost halls declined 1.6% to JPY243.6 billion.
Dynam has made no secret in recent years of its plan to reduce the number of high playing cost halls under its watch and increase low playing cost halls in response to increasing government regulation limiting the payouts, and therefore the attractiveness to players, of pachinko and pachislot machines.
“Under such business environment, the group has made efforts to grow and develop with local communities and to improve the machine utilization through various kinds of business measures under the important policies of setting up our halls from the customers’ viewpoint and operating each of our halls with a focus on customers’ needs,” Dynam said in its latest earnings release.
“The group is aiming at making pachinko an accessible amusement everybody can enjoy and is working to expand the market shares in the industry by opening low playing cost halls.”
Dynam currently operates 450 halls including 180 high playing cost halls and 270 low playing cost halls.
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