Current gambling regulations in Japan

Historical situation

Because of its historical, cultural and legal background gambling in Japan is a rather complex matter. Japan has long lived with strict anti-gambling laws, and its gambling regulations are something of a hot topic. The Japanese government has been wary about allowing casinos out of concern that they will fuel addiction and other social problems. Nevertheless, recent trends suggest a growing acceptance of gambling outside the traditional context.

In Japan, according to Mybet Japan online casino, gambling is mostly banned because of the Criminal Code (Article 185) with only exceptions for betting on horse racing, bicycle racing and certain motor sports. Pachinko parlour also provide another means to making money besides its recreational aspect. Pachinko parlours do not offer cash prizes, but winners can exchange their prizes for tokens or items, which can then be exchanged for money at a different location, skirting the edge of the law.

Japan gambling laws

The Criminal Code bans all casino gambling, but the 2016 Integrated Resort (IR) Promotion Law and the 2018 IR Implementation Law legalized some forms of casino-style gambling in Japan. The IR laws allow the establishment of integrated resorts that are large-scale complexes showcasing not only casinos but also hotels, conference rooms and entertainment facilities. Attracting tourists and bringing economic development to the regions are among objectives of these government approved resorts. At present the government intends to license 3 integrated resorts — one each for Osaka, Yokohama and Nagasaki.

At the same time, measures to prevent related social problems such as gambling addiction should be put in place when new integrated resorts are introduced. This will involve a cap of three visits to casinos per week and ten times per month — which allotment is less than what some Japanese citizens hope for. Japanese residents must pay an entry fee of JPY 6,000 (approximately USD 55), whereas foreign tourists can enter for free. The goal is to prevent problem gambling among residents while promoting tourism.

In addition, there is very strict regulatory licensing for casino operators. That includes, for example, a provision that the casino floor area in integrated resorts (a type of licensed resort) must be limited to 3% and the gross sales from gaming required under various regulatory frameworks are allowed in no event to surpass an amount equal to two and one half percent used by organizations designated by UDAAP prevention measures against gambling. Operators should also have strong know-your-customer (KYC) controls in place to deter money laundering.

However, public opposition has been substantial in Japan over the implementation of integrated resorts. However, critics claim that the government is underestimating the potential social problems of gambling addiction. The government has established the Casino Management Commission to supervise integrated resorts and ensure they are operating in accordance with regulations so that issues such as problem gambling can be dealt with.

Japan is a strict gambling country and the legalization of integrated resorts represents a significant change in its stance on gaming issues. Some obvious restrictions are imposed by the government but casino visits may still be allowed under control in compliance with very strict regulations. The arrival of integrated resorts is portrayed as a move towards liberalizing Japan's gambling laws, but concerns over issues like problem gambling persist. Therefore, the prospects for Japanese gambling are also expected to remain limited.