![]() ![]() The parlor and the exchange center must have zero ties to one another. For example, if you ask a pachinko parlor employee where to find a prize exchange center, they won’t tell you. While this system works, it only works if pachinko parlor employees follow strict rules. Since pachinko stores don’t fall under the gambling laws, the same tax rules don’t apply. If you win money through a form of state-run gambling (e.g., horse racing), you’ll pay taxes on any proceeds. The system has another benefit for gamble- oops, sorry pachinko players: winnings aren’t taxed like gambling winnings. Rather, they call under the laws regulating entertainment, nightlife, and the sex industry (風営法 fuueihou). This means that, legally, pachinko parlors don’t fall under the country’s laws regulating gambling. ![]() ![]() In other words, the “pachinko parlor” isn’t running a gambling operation because it’s not exchanging your ticket for money – just “prizes”.
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