Okura Holdings to discontinue operations of Nagasaki pachinko hall

A Japanese pachinko hall operator, Okura Holdings Ltd., said that it will shut a hall in Nagasaki City due to “deteriorating operating and financial performance” after the onset of the COVID-19 pandemic.

Okura will have only eleven halls when the K’s Plaza Ohato hall closes on January 14, 2024.

The decision was driven by K’s Plaza Ohato seeing a decline in customer traffic starting in January 2020, which led to a JPY58.5 million (US$405,000) deficit for the fiscal year that ended on June 30, 2023. Compared to other pachinko halls in the firm, management noted a delayed recovery in customer traffic, despite efforts to promote pachinko and pachislot games at the hall.

The management of Okura determined it would be more beneficial to focus resources on the group’s other potential pachinko halls because to the challenging operating environment, intense competition within the pachinko industry, and growing competition from other forms of entertainment in Japan. The building and land of the soon-to-close hall belong to the company, which may think about renting out the space in order to generate rental income.

According to Okura’s financial records for the fiscal year ending June 30, 2024, a “insignificant” loss on the sale of property, plant, and equipment is expected as a consequence of K’s Plaza Ohato shutting. The remaining eight halls of the group are spread throughout Japan’s Kyushu, Kanto, Kansai, and Chugoku regions.

Original story by: IAG