Oh, so now we're at the "pachinko isn't gambling because you have to go across the street to get cash for your prizes" argument. Knew we'd eventually get there.

You see, in Japan, pachinko parlors are "technically" not gambling because you exchange your winnings for cheap toys, similar to exchanging tickets at the Chuck E Cheese counter. Except there's a store directly across the street from the pachinko parlor that buys those toys for, well wouldn't you know it, the exact amount of your winnings!

And since it's "not gambling" in the eyes of the law, it's not damaging, right?

https://academic.oup.com/alcalc/article-abstract/49/suppl_1/i17/105541

Conclusion. This study revealed that the prevalence of pathological gambling, especially among men, was much higher in Japan than in other countries. Pachinko was very popular and was strongly suggested to have contributed to this heightened prevalence.

Oof.

Yes, it's still gambling even if you have to access a grey market to obtain fiat currency. Why? Because obtaining fiat currency isn't a defining factor of gambling.

Where will you take those goalposts next?