by Steve Norton

CEO, Norton Management

While betting on certain sporting events in Japan is legal and casinos are not yet, Pachinko games are available everywhere in Japan. These games are not supposed to be gambling, and the Pachinko Parlors only give out gifts to winners. But these gifts, or the Pachinko balls themselves, are easily exchanged for cash at neighboring stores; so in effect this is gambling. And frequently the exchange of balls or merchandise can be made at a street vendor or adjacent store, often owned by the Pachinko Parlor's operator. But because of the gray nature of the business, these companies cannot be traded on the Japanese Exchange.

The amount wagered is enormous, estimated at $185 billion in 2014, having declined from around $300 billion 20 years ago. Pachinko was developed as a children's game in 1920, but became popular for adults after World War 2. But like Las Vegas, the mob or the Japanese yakusa, have been involved in ownership of some parlors, and been accused of taking kickbacks at others.

Currently some 333,000 persons are employed at over 12,000 parlors; and these parlors which once were primarily filled by chain smoking older males, are now adding non-smoking areas and buffet food services to attract women and younger

players. Currently about 16 percent of the Japanese public now play Pachinko.

Two manufacturing companies, Konami and Sega, are now producing slot machines as well as pachinko games; and Sega is actually building its own casino in Incheon, South Korea; possibly readying itself for a Japanese casino bid.

Some versions of the Pachinko games offer a flipper, like a pinball game, that might bring the question of skill into the conversation.

If Japan wants to have destination casino resorts, like in Singapore, to be operating by the 2020 Olympic Games, they must move quickly. But the Buddhist group of

the Legislature has concerns about compulsive gambling by the local population.

Perhaps Japan should look carefully at the Singapore Legislation, which requires a daily or annual entry fee for the resident population; requiring visitors to show a foreign passport or other form of identification.