Japanese pachinko-related stocks are climbing as easing regulations and new technology lure more players.
(Bloomberg) — Japanese pachinko-related stocks are climbing as easing regulations and new technology lure more players.
Tsuburaya Fields Holdings Inc., a pachinko machine maker, has surged nearly 500% in the last 12 months, making it the top performer on the benchmark Topix. Manufacturers Gamecard-Joyco Holdings Inc., Mamiya-Op Co., and Daikoku Denki Co. have each rallied more than 90% as loosened Covid curbs and revamped technology spark a resurgence in the pinball-style game.
Officials have been relaxing virus measures that have been in place since 2020. Tokyo’s Metropolitan Police Department recently loosened its pachinko advertising rules for the first time in 10 years.
“Special demand in this area will continue for at least the medium term,” said Satoshi Kurihara, senior analyst at SBI Securities Co. Industry rules tend to rotate from being more to less restrictive every decade, and the current wave of regulatory relief should benefit pachinko makers, he added.
The rollout of so-called “smart” pachinko machines could also boost the game’s popularity. Such machines, which don’t physically pay out medals or balls like their traditional counterparts do, are aimed at streamlining play and making operation easier.
Sega Sammy Holdings Inc., which makes pachinko machines as well as video games, raised its full-year profit guidance in February. The company, whose shares are up 17% this year, said it expects smart pachinko to fuel further demand after such machines were introduced in November for slot-type games.
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