Regulatory Landscape of Online Gambling in Japan

The rapidly growing landscape of online gambling in Japan has become a topic of significant interest, not only for enthusiasts of chance but also for businesses seeking opportunities in the country. However, the legal situation regarding gambling in Japan is as complex as in India.

In this article, we delve into the regulatory framework governing gambling in Japan, the current legal landscape, and recent police enforcement actions.

Gambling Laws in Japan

Japan has strict laws regarding gambling. Chapter 23 of the Criminal Code of Japan prohibits most forms of gambling, including the private sale of lottery tickets and organized gambling. However, there are some exceptions to this rule such as public sports, lottery, and pachinko.

Public Sports

Public sports, such as horse racing, bicycle racing, powerboat racing, and asphalt speedway motorcycle racing, are allowed by special laws and are regulated by local governments or governmental corporations

Lottery

Lotteries, known as Takarakuji in Japanese, are held by prefectures or large cities regularly throughout the calendar year. Each lottery ticket is sold for 100 to 500 yen, and the top cash prizes are usually 100 million yen or more. The Takarakuji law stipulates that the entire prize pool for any given lottery is to be less than 50% of total sales, with the rest going to local government organizations and charities.

Pachinko

Pachinko is a popular pinball-like game in Japan. It is not considered gambling under Japanese law due to historical, monetary, and cultural reasons. Players can exchange their winnings for prizes of different values at a booth in the parlor.

Money cannot be awarded at pachinko parlors, as this would violate the criminal code. However, players almost always exchange pachinko balls for special tokens, usually slips of gold encased in plastic, and then “sell” them at a neighboring shop for cash.

Legal Status of Online Casinos

Online casinos are in a legally gray area in Japan. Although they are not explicitly prohibited by law, the government has stated that it considers them to be illegal. This means that there is no clear legal framework for online gambling in Japan, and players who participate in it may be at risk of prosecution.

According to Hideki Nakata, an editor of onlinecasinojapan.com, online gambling remains popular in Japan despite the legal ambiguity. There are still many Japanese players who continue to access overseas-based online casinos.

Police Enforcement

In recent years, the Japanese police have stepped up their enforcement efforts against online casinos, making several high-profile arrests in 2023. These arrests include a popular YouTuber who promoted online casinos and the CEO of a payment agent that was used to process payments to and from online casinos.

The arrests have sent a strong message to the Japanese public that online gambling is illegal. Despite cases of people being arrested at online casinos but not prosecuted, the police’s arrests and widespread reporting have led to the public’s perception that online casinos are illegal, even though they are legally gray. The police are likely trying to stop the growth of online casino users through this kind of impression management.

Conclusion

The regulatory landscape of online gambling in Japan is complex and constantly evolving. While online casinos are not explicitly prohibited by law, the government has stated that it considers them to be illegal.

In recent years, the Japanese police have stepped up their enforcement efforts against online casinos, making several high-profile arrests. While this has sent a strong message to the public that online gambling is illegal, it is likely that the police are also trying to stop the growth of online casino users through impression management.

The future of online gambling in Japan is uncertain. The government may eventually introduce a regulatory framework for online casinos, but this is not expected to happen anytime soon. In the meantime, Japanese players who participate in online gambling should be aware of the legal risks involved.