Online Gambling Laws in Japan

Japan is an interesting country when it comes to gambling laws. Those in the country can legally enjoy a small set of permitted gambling activities, most of which offer tax-free winnings. On the other hand, there isn't any law stating that online gambling is illegal. Let's take a closer look at gambling laws in Japan.

Gambling Regulation by Casino Type

Generally speaking, gambling laws in Japan mean only specific games can be played, and limited sporting events can be bet on, with anything that falls outside of the government's list being deemed illegal. However, as in many other cases worldwide, there are grey areas. Here, we look at Japan's gambling regulations by activity to determine what is and isn't legally permitted in the country and where those that fall outside the legal framework lie.

Casino Games

Until recently, top casino games familiar in Western countries, such as Blackjack, Roulette, Baccarat and slot games found in land-based casinos, are generally unavailable in Japan due to legal restrictions. For the most part, this is because these games involve varying degrees of luck, which is frowned upon in the country. As a result, there are currently no land-based casinos in Japan.

However, recently passed laws, such as the International Resort Promotion Law (2016), have paved the way for creating Japan's first land-based casinos. Thought to be driven by the country's need to create new revenue streams amidst a struggling economy, these developments could lead to an overhaul of online casino gaming laws.

The Japanese government currently tries to dissuade citizens from playing at the numerous online casinos operating outside of Japan but serving the country's residents. However, from a legal standpoint, no law makes online gambling illegal.

Poker

Generally included in the list of illegal games in Japan, poker is not found to any great degree in the country unless it's for play money. The absence of casinos in Japan means there are no venues for poker games. However, the expectation is that as the country starts to develop its first land-based casinos, the law will be updated to allow for limited poker games.

Online poker games can be found at the numerous online gambling sites that allow Japanese residents to join. As mentioned above, although the Japanese government does not recommend this kind of online gaming, no laws prohibit it.

Bingo

Bingo is another popular game that is usually not found in Japan. Again, a lack of casinos in the country means there isn't anywhere for these games to be played. This is expected to change once the country's first land-based casinos have been built, which many predict will change the gambling landscape in Japan.

Of course, there are many fans of online bingo gambling in Japan, and these players can enjoy the number calling the action of their favourite game at one of the many online casinos that accept Japanese members. Again, while the government tries to discourage the activity, playing online bingo games is not explicitly illegal.

Lotteries

Lottery games are hugely popular in Japan, with the country's government-subsidized lottery run by Toto. Lotteries ran in the country for several hundred years before the government stopped them in 1842, but they were relaunched in 1945.

Today, many players buy Takarakuji (lottery) tickets to win cash prizes via scratch cards, the daily Numbers 3 and Numbers 4 games, the twice weekly Lotto 6 and Lotto 7 draws and the quarterly Jumbo Lottery. Takarakuji tickets can now be bought online, making the country's lottery games one of the few explicitly legal offline and online for real money.

Pachinko

Perhaps the most popular form of gambling in Japan is Pachinko, a pinball-type game involving balls sent through an elaborate maze of pins, aiming to land these balls into specific holes or catches in exchange for prizes. To comply with Japanese gambling laws, prizes can only be merchandise. However, many pachinko parlours sidestep this requirement by setting up shops next door at which you can redeem your pachinko prizes for cash.

Pachinko is currently one of the few legal gambling activities in Japan. Still, many speculate that pachinko parlours will see a drastic decline in footfall once the country's land-based casinos have been developed.

The popular game doesn't translate well to online gameplay. Still, several Japanese casino game developers have successfully created online casino slots with a pachinko theme, which attracts a respectable following of players in the country.

Japan Sports Betting Laws

There are four sports, designated 'public sports,' on which betting is legal in Japan: horse racing, bicycle racing, motorbike racing and powerboat racing. Some Toto booths also allow Japanese residents to bet on football matches. Most sports betting is provided by the Japanese Racing Association (JRA), but many local government organizations offer their own sports betting opportunities.

Sports betting in Japan is restricted to parimutuel betting, whereby a proportion of all bets is used to pay the winners (in contrast to the fixed odds betting provided by most Western sportsbooks). The Japanese government brings in a lot of revenue from the country's sports betting thanks to a 10% to 20% rake on every bet. Since it's not explicitly illegal, online sports betting is popular with Japanese residents who want to bet on a broader range of sports from around the world.

Gambling Age Restriction

Though the age of adulthood in Japan was recently lowered to 18, participants must be at least 20 for many forms of gambling. The only exception is Pachinko, which those aged 18 or over are legally permitted to play as the country does not recognize the game as a form of gambling.

Tax Regulation

Players can enjoy tax-free winnings for the few legal gambling activities in Japan. These lenient Japanese gambling tax regulations are down to the fact that, in most cases, the government takes a cut of all bets.

History of Gambling Laws in Japan

Japan's gambling laws date back to around 1907, when the country's Criminal Code made most forms of gambling illegal, except those offered by the Japanese Racing Association, which was formed in the same year, and a few other exceptions as specified by the government. Having outlawed lotteries in 1842, the government brought them back in 1945 to bring much-needed revenue into the war-torn country.

Boat races found their way to Japan from the US in 1952, and by 1980, they had been added to the small list of permitted gambling sports. In 2001, football betting was legally allowed to be offered by Toto in the country.

2016 saw the enactment of the Integrated Resort Promotion Law, which paved the way for the government to allow the development of land-based casinos in the form of Integrated Resorts (IRs). Disruption due to COVID-19 led to delays, but the government seems keen to continue its plans.

Key Facts

Japan's online gambling laws are generally unspecific. Indeed, the country's offline gambling activities are regulated under somewhat undefined and unclear language, with exceptions for the activity defined as a person who bets a thing provided for momentary entertainment, which could be applied to all forms of gambling.

Still, only a few specific forms of gambling are legally permitted in Japan, including Pachinko, lotteries and the public sports of horse racing, bicycle racing, motorbike racing and boat racing. In terms of online gambling, there is currently no law that states the activity is illegal, with many residents of Japan joining the numerous online casinos and sports betting sites for their gambling entertainment.