If you’re a huge Sega nerd, you probably did know this. But if you’re just a big fan of, say, Sonic, that’s never really looked into the company’s corporate history or other operations, you might not know that Sega and gambling games go way back. So what’s the story?
From the very founding of the company selling slots to US military based in Japan, to its takeover by pachinko slot machine maker Sammy Corporation in 2004, to the modern licensing of its game IPs to Western slot developers, Sega has been closely connected to gambling and slot games. This article will explore that history in detail, and look at the most recent moves by the legendary video game developer in the slot space.
Sega’s History with Slot Games and Gambling – The Origin Story
Sega actually got its start in business making slots for venues near US military bases in Hawaii. However, in 1952 the US Government outlawed slots in its overseas territories, so the company moved operations to Japan. There it merged with several local companies and began making coin operated arcade games and pachinko machines. By the 1970s it began making videogames.
Pachinko games are kind of like a vertical pinball machine, usually used for gambling. They fill a similar role to slots in Western casinos. The games usually give small physical prizes, which can then be exchanged off-site for cash – thereby not violating Japanese gambling laws.
Whilst the pachislot machines are common in Japan, the majority of Sega’s titles in this genre aren’t available in Western markets. However, you can play licensed tie ins with Sega videogame IPs, along with thousands of other slot games and casino table games, at top-tier online casinos like Jackpot City.
When Sega was bought out by pachinko maker Sammy Corporation in 2004, the company put Sega’s videogame expertise to work developing then-new screen-based pachinko games that were even more like western slot machines.
Some Examples of Sega’s In-House Gambling Games
Sega developed the Hokuto no Ken pachinkoslot game, or Fist of the North Star, which is based on a very popular manga. This pachislot series is the best selling ever in Japan, with around 31 million units sold since 2004.
To put that in context, the Sonic series has sold over 3.5 billion units across all of its 100-plus titles since the 1980s. However, that is just sales volume. Pachinkos continue to make money over the lifetime of the machine, unlike old school videogames. In fact, there are only a couple of Sonic games with microtransactions, meaning the two business models aren’t exactly comparable.
Over the years Sega has produced pachislots based on video game IPs like:
- Virtua Fighter
- Sonic
- Bayonetta
- Persona
- Phantasy Star
- Jet Set Radio
Yes, There’s a Sonic Slot – Sega IP’s Licensed to Slot Games
Most of the above games aren’t available on the western market at all, or even anywhere outside of Japan, as pachinko games and pachislots just aren’t popular or known enough to justify it.
However, being a global business involved in gambling anyway, it only makes sense that Sega has tried to use its videogame IPs in the western gambling market.
Multiple large American and European slot developers have licensed Sega titles to make online slot games. That includes their flagship IP, Sonic. The super fast blue hedgehog has appeared in a few slot games over the years, but not particularly recently. The most notable being 2016’s Sonic Boom by legendary Swedish developer NetEnt.
Other slot games using Sega video game IPs include Aristocrat’s Golden Axe, NetEnt’s House of the Dead and Sega Sammy’s own Persona 5 Reels, a limited release slot machine for physical casinos.
The Golden Axe slot was hugely popular in US casinos for many years, and has been rumoured for an online slot revival for years – but it hasn’t happened yet.
Recent Moves in the Market and What Comes Next
Sega Sammy continues to see pachislots as a key part of its revenue. In yearly financial reports, it makes up around 30-40% of Sega’s global business and the company wants to see that grow.
Sega Sammy is also trying to utilize its gambling tech knowledge and strong R&D department to position itself as a business to business services provider in the gambling market. In 2025 it completed its $141 million takeover of Dutch online gambling platform Stakelogic, which will further its goals in this international market.
The most recently released slot game for Sega was only for physical casinos. It’s Genesis Atmos cabinet holds various slot games, including some by Stakelogic, but also its own in-house game Railroad Riches. This slot has been popular at US casinos since it released in January 2024.
In terms of videogames, Sega continues to do relatively well although it is by no means dominates the video game sales charts as it once did. The last Sonic game, Sonic Racing Crossworlds sold okay, but the most recent massive success was 2022’s Sonic Frontiers which sold 4.5 million units – the most for a Sonic game since the 1990s.
The Total War Series (published by Sega but made by Creative Assembly) continues to sell well with new releases, but the companies best-selling IP of recent years has been RPG game Persona. The 5th installment – Persona 5 Royal – sold 7.5 million copies, more than any Sonic game since the 90s.
