Scientific Game

Japanese pachinko operator Okura Holdings looking to buy-out rivals

Friday, 20 October 2017 06:42
Share
Visit us

Japanese pachinko hall operator Okura Holdings has outlined plans to expand by taking advantage of increasingly tough regulations governing pachinko and pachislot machines to acquire smaller operators.

The details of Okura’s ambitions are outlined in the company’s annual report and come despite a difficult year in which gross pay-ins declined 12.2% to ¥37.7 billion (US$334.9 million) and revenue 8.5% to ¥9.2 billion (US$81.7 million) for the year ended 30 June 2017. Okura operates 18 pachinko halls of which 12 are in the Kyushu region, four in the Kanto region and one each in the Kansai and Chugoku regions.

Pointing to recent amendments to pachinko machine regulations implemented by the National Public Safety Commission, Okura said that these “significant threats” also present consolidation opportunities for larger market players.

“For instance, any further enforcement of the Amended Voluntary Regulations and the constantly changing market trends and customer preference on machine types and playing costs are likely to demand that pachinko hall operators replace machines more frequently and strategically,” it said. “The expenses in relation to machine replacement are burdensome for Small-sized Pachinko Hall Operators as most of these halls do not have the financial resources to enable frequent machine replacement.

“Thus the pachinko industry remains relatively favorable for Mid-sized Pachinko Hall Operators and Large-sized Pachinko Hall Operators as they may further develop their business by absorbing the market share of Small- sized Pachinko Hall Operators.

“We are optimistic that we can continue to tap into the potential acquisition opportunities of Small-sized Pachinko Hall Operators to achieve economies of scale in operations. Furthermore, as long as our management remains responsive to the changes and flexible in adjusting our strategies to ensure our operations remain efficient and the mix of machines types in each of our halls remain optimal for each operating location, the directors reasonably believe that we can operate and expand our business sustainably notwithstanding the continued contraction of the pachinko industry and the competition with other forms of entertainment in Japan.

“Building on our key strengths, we aim to continue to strengthen our market position and further expand our business by strategically expanding our pachinko hall operations through establishing new or acquiring pachinko halls and to enhance our appeal to the younger population, a significant source of revenue to our group.”

The enforcement of Amended Voluntary Regulations in 2016 effectively banned 138 types of pachinko machines and resulted in 700,000 units being withdrawn from the market. The National Public Safety Commission subsequently issued its “Draft Regulations to Amend Partially Regulations on the Entertainment and Amusement Trades Rationalizing Act and Regulations on Certifying Machines and Conducting Type Test on Machines” in August 2017 which will further limit the payout ability of pachinko and pachislot machines.

 

 

 

 

What's new

TGG signs deal with two Cambodian casinos

TGG signs deal with two Cambodian casinos TGG Takara Gaming Group, the world’s first open-source gaming platform, has announced that it is entering the Southeast Asia Market with two leading local casino groups in Southeast Asia – Golden Crown and Superrich the Best Casino. TGG is an open-source casino gaming platform bringing globa... Friday, 19 January 2018 07:06

Asian casino investor Amax to explore blockchain technology and cryptocurrency

Asian casino investor Amax to explore blockchain technology and cryptocurrency Hong Kong-listed casino investor Amax International Holdings Ltd has announced plans to establish a blockchain technology arm in an effort to “diversify its business operations, broaden its income sources and explore investment and or development opportunities.” In a filing to the Hong Kong Sto... Friday, 19 January 2018 07:01

Macau casino kingpins on the rise in Forbes 2018 Hong Kong Rich List

Macau casino kingpins on the rise in Forbes 2018 Hong Kong Rich List Galaxy Entertainment Group Chairman Lui Che Woo, Melco Resorts Chairman and CEO Lawrence Ho and MGM China Co-Chairperson and Executive Director Pansy Ho are among several Macau casino powerbrokers to see their stocks rise in 2017 according to this year’s Forbes’ Hong Kong Rich List Lui was the ... Friday, 19 January 2018 06:36

Macau casino exclusion requests grow 7% in 2017

Macau casino exclusion requests grow 7% in 2017 The number of requests for exclusion from Macau casinos grew by 7.1% in 2017 to 376, the Gaming Inspection and Coordination (DICJ) has revealed. Figures released on Thursday show that the number grew from 351 in 2016, with the vast majority of this year’s requests, 316, coming via self-exclusion ... Friday, 19 January 2018 05:59

Current Issue

VIDEO: Inside Asian Gaming to host Asian Gaming Power 50 Gala Dinner

VIDEO: Inside Asian Gaming to host Asian Gaming Power 50 Gala Dinner Inside Asian Gaming will host the inaugural Asian Gaming Power 50 Gala Dinner on 23 November 2018. Friday, 12 January 2018 06:47

ENTER THE DRAGON2

ENTER THE DRAGON2 NagaWorld’s expansion lifts the Mekong region’s largest integrated resort and Phnom Penh into the top tier of regional destinations, with an increasing focus on Chinese tourists. By Muhammad Cohen | Editor at large in Phnom Penh   When I first visited NagaWorld six years ago, the casino hot... Friday, 29 December 2017 03:00

Strength in numbers

Strength in numbers Macau’s VIP segment has been historically volatile, but has surprised with the sheer strength of its resurgence in 2017. What can we expect from VIP in 2018? By Ben Blaschke   If the jury was out on the sustainability of Macau VIP’s resurgence for much of 2017, it’s not anymore. Having cop... Friday, 29 December 2017 02:54

Data driven

Data driven From the traditional betting habits of Europe to the expanses of Asia, data analytics firm BettorLogic is showing how the correct use of data can provide benefits to sportsbook operators and customers alike. By Ben Blaschke   One of the enormous challenges facing sportsbook operators today is st... Friday, 29 December 2017 02:46