Gambling Laws in Japan

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

Which Types of Gambling Are Legal in Japan?

Laws in Japan mean only specific games can be played and limited sporting events can be bet on. Anything that falls outside of the government's list is deemed illegal. However, as with many other countries worldwide, there are grey areas.

Wagering on Offline and Online Casino Games

Until recently, top casino games familiar in Western countries, such as blackjack, roulette, baccarat and slots were generally unavailable due to legal restrictions. 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, the International Resort Promotion Law (2016) has 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 also lead to an overhaul of current online casino gaming laws.

The Japanese government currently tries to dissuade citizens from playing at foreign online gambling sites. However, from a legal standpoint, no current law makes online gambling illegal.

Playing Poker With Real Money

Poker only becomes illegal when it's played with money, though the absence of casinos in Japan means there are no venues for games. Online poker can be found at the numerous foreign sites that allow residents to join though.

Betting on 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 and plenty of offshore sites which accept residents in Japan. Again, while the government tries to discourage the activity, playing online is not explicitly illegal.

Purchasing Lotto Tickets, Scratchcards and Other Instant Win Games

Lottery games are hugely popular in Japan, with the country's government-subsidised lottery run by Toto. Draws 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 tickets to win cash prizes via scratchcards, the daily Numbers 3 and Numbers 4 games, the twice weekly Lotto and the quarterly Jumbo Lottery. Takarakuji tickets can now be bought online, which is deemed legal in current laws.

Pachinko Gambling

Perhaps the most popular form of gambling in Japan is Pachinko. A pinball-type game involving balls sent through an elaborate maze of pins. To comply with gambling laws, prizes can only be 'paid' in merchandise. However, many parlours sidestep this requirement by setting up shops next door at which you can redeem your prizes for cash.

The popular game doesn't translate well to online gameplay though. Several Japanese casino game developers have successfully created online casino slots with a pachinko theme. These attract a respectable following of players in the country.

Japan: Is Sports Betting Legal?

There are four designated 'public sports' on which betting is legal in Japan. These are horse, bicycle, motorbike and powerboat racing. Some Toto booths also allow residents to bet on football matches. Most sports betting is provided by the Japanese Racing Association (JRA), but many government organisations offer 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 government brings in a lot of revenue from sports betting thanks to a 10% to 20% rake on every bet. Since it's not explicitly illegal, online sports betting is popular with residents who want to bet on a broader range of markets from around the world.

What's the Minimum Legal Age to gamble in Japan?

Though the age of adulthood in Japan was recently lowered to 18, participants must be at least 20 to gamble. The only exception is Pachinko, which those aged 18 or over can play.

Japans Gambling Tax Regulations

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

History of Gambling Laws in Japan

These date back to around 1907 when the country's Criminal Code made most forms of gambling illegal. The only exceptions were those offered by the Japanese Racing Association, which was formed in the same year and a few others 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.

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. 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 activities are also regulated under unclear language.

• Only a few specific activites are legally permitted, including Pachinko, lotteries and the public sports of horse, bicycle, motorbike and boat racing.

• In terms of online gambling, there is currently no law that states the activity is illegal. Many residents join the numerous online casinos and sports betting sites for their gambling entertainment.