The “Three-Store System” in Pachinko:
In Japan, the pachinko industry operates under a unique system known as the “three-store system,” which allows players to exchange their winnings for cash without directly violating Japan’s gambling laws. Here’s how it works:
- Pachinko Parlor (First Store): Players play pachinko at a pachinko parlor, where they win small metal balls. These balls are the prize and are considered a form of currency within the parlor.
- Exchange Counter (Second Store): Instead of receiving cash directly, players exchange the balls they’ve won for special tokens or “prize tickets” at an exchange counter inside the pachinko parlor. This step is key because gambling laws in Japan prohibit gambling directly for cash.
- Specialized Shop (Third Store): The tokens or prize tickets can then be taken to a nearby, independent shop that specializes in buying these tokens. This shop will exchange them for cash. The shop is not technically part of the pachinko parlor but is often closely linked to the pachinko business, and this indirect exchange loop keeps the process within legal boundaries.
This system effectively allows players to convert their pachinko winnings into cash, while circumventing Japan’s gambling restrictions.