Zona de Azar Japan – Okura Holdings to Close Nagasaki Pachinko Hall Amid Slow COVID-19 Recovery

Japan.- 11th January 2024 www.zonadeazar.com Okura Holdings Ltd, a prominent operator of pachinko halls in Japan, has announced the closure of one of its halls in Nagasaki City due to the “deteriorating operating and financial performance” since the onset of the COVID-19 pandemic.

The closure will bring Okura’s total number of operating halls down to 10.

In a recent filing, Okura revealed a decline in customer traffic at its K’s Plaza Ohato hall since January 2020, leading to the decision to cease operations from January 14, 2024. The hall reported a loss of JPY58.5 million (US$405,000) for the fiscal year ending June 30, 2023.

Management stated, “Although K’s Plaza Ohato gradually managed to regain customer traffic in the year ended 30 June 2023, as compared with some of the Group’s other pachinko halls, the recovery of customer traffic at K’s Plaza Ohato is still at a slow pace despite the Group’s continuous effort in promoting its pachinko and pachislot games.”

Considering the challenging operating environment, intense competition in the pachinko industry, and rising competition from alternative forms of entertainment in Japan, Okura decided to focus its resources on the more promising pachinko halls, such as SENKURA Dejima (formerly known as Big Apple. Dejima), located near K’s Plaza Ohato.

Okura mentioned its ownership of the relevant land and building and is contemplating renting the premises upon closure to generate rental income.

The closure is expected to result in an “insignificant” loss on the disposal of property, plant, and equipment, to be recorded in the financial results for the year ending June 30, 2024.

The group’s remaining 10 halls are situated in the Kyushu, Kanto, Kansai, and Chugoku regions of Japan.

Edited by: @MaiaDigital www.zonadeazar.com