However, they can be legally traded to the parlor for so-called 'special prize' tokens (特殊景品 tokushu keihin), which can in turn be 'sold' for cash to a separate vendor off-premises. Pachinko balls won from games cannot be exchanged directly for money in the parlor, nor can they be removed from the premises or exchanged with other parlors. Gambling for cash is illegal in Japan, but the widespread popularity of low-stakes pachinko in Japanese society has enabled a specific legal loophole allowing it to exist.

Modern pachinko machines have both mechanical and electrical components. Pachinko parlors are widespread in Japan, and usually also feature a number of slot machines (called pachislo or pachislots) so these venues look and operate similarly to casinos. Pachinko fills a niche in Japanese gambling comparable to that of the slot machine in the West as a form of low-stakes, low-strategy gambling. Pachinko ( パチンコ) is a mechanical game originating in Japan that is used as an arcade game, and much more frequently for gambling. A modern pachinko machine A pachinko parlor in Tokyo

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