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Japan – Sega Sammy Holdings’ profits fall by 91 per cent

By - 17 May 2021

Japanese pachinko and casino operator Sega Sammy Holdings who is also a supplier for the industry, saw a 90.7 per cent drop in profit to Y1.27bn (US$11.6m for the financial year ended March 31.

The company’s a joint venture partnership with Korea’s Paradise Co in South Korea’s Paradise City, saw guest levels plunge by 45.5 per cent with net sales falling 39.7 per cent to JPY6.32bn (US$57.7m).

The company said: “In the resort industry, demand for both domestic and overseas travel was dropped, resulting in a drastically reduced number of tourists due to the impact of COVID-19 and travel restrictions imposed by each country. The recovery in domestic tourism demand was observed during “Go to Travel Campaign” launched by the national government in July 2020, but travel demand has once again been sluggish mainly due to the suspension of the campaign announced in December 2020 and restrictions on economic activities following the declaration of a state of emergency that was issued again in January 2021.”

Regarding the pachislot and pachinko industry, pachinko halls across the country suspended their operations in the first quarter of the current fiscal year in response to the declaration of a state of emergency from government and requests from local governments due to the spread of COVID-19.

Sega Sammy said: “Pachinko hall operators’ purchasing motivation was significantly dropped in the first half of the current fiscal year with the extension of the deadline to remove the machines based on former standards due to the impact of COVID-19. In this environment, for pachinko machines, some of new standard machines are gaining popularity. Also, for pachislot machines, the introduction of Type 6.1, the new standard machines has begun.”

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