Abstract
Keirin, or bicycle racing, is one of Japan’s public gambling businesses organized by local
governments. It saw a sharp decline in ticket sales during the economic downturn of the 1990s. This
decline led to many local governments leaving the field, resulting in a 50% decrease in the number of
Keirin businesses. Meanwhile, those that continued operations have seen a rapid recovery in sales
since the 2010s due to the advancement of the nationwide online ticket system. This paper analyzes the
revenue and expenses of Keirin businesses and aims to clarify the factors that led local governments to either continue or discontinue their efforts. The results show that those who decided to continue
their businesses were more proactive than those who chose to discontinue operations. This was
apparent in revenue generation strategies, cost reduction efforts, utilization of government support,
strengthening inter-municipal collaboration, and ties to the local economy. Local governments also
took steps to ensure that any business deficits were temporary. Furthermore, the decision to continue
or discontinue Keirin operations was not related to the size of the local government; notably, smaller local governments tended to continue their operations.
