A History of the Pachinko Industry From a Peripheral Economy to a Huge Market

Pachinko parlors offer a form of gambling unique to Japan located near train stations, in the suburbs, and in other everyday living spaces. Before World War II, pachinko was born as a game for both children and adults to enjoy at outdoor festivals. From its humble origins, it has grown dramatically to become a huge industry with a market size of 30 trillion yen per year. How did pachinko develop from a peripheral economy to become a major industry? Ethnic minority Koreans in Japan, who arrived during the Korean colonial era, are deeply involved in the economic activities of the pachinko industry—how should we understand their involvement in the growth of this huge market? Drawing on a vast amount of primary and secondary resources from the 1950s to the 1990s, this book sheds new light on the circumstances behind the emergence of the pachinko industry as a huge market force in Japan.

Jaehyang Han, PhD (Economics), is currently Professor at Hosei University in Japan.

List of Figures List of Tables List of Photographs Acknowledgements Glossary JPY-USD exchange rate Map of Japan Introduction: A Struggle for Survival 1. Inception of the Pachinko Industry: Commercialization of Traditional Festival-day Entertainment 2. Organization of the Pachinko Industry: Why Did a Patent Pool Evolve? 3. Competitive Structure of the Pachinko Machine Market: Promotion of Development-based Competition 4. Development of the Pachinko Industry into an Enormous Market 5. Emergence of Large-scale Operations at Pachinko Parlor Businesses Essay: Pachinko and Ethnic Minority Koreans in Japan Conclusion: The Black-box Industry Appendix 1: Effectiveness of Renewal Reopenings Appendix 2: Did the Introduction of Fiba-type Machines Increase Parlor Sales Variance? Appendix 3: Effects of Chain Development by Maruhan around the Early 1990s Notes Afterword Primary Sources Bibliography Index