Online gambling in Japan is a gray area where regulations are not clear. The first thing you should know is that it’s legal to bet on public sports, soccer toto, and government-run lotteries in Japan. These are pretty much almost the only online gambling activities that are currently legal for Japanese bettors. That means betting on online casino games is technically prohibited for Japanese gamblers – think online poker, slots, and table games, among other games of chance.
Despite this, Japanese people still access online casino games offered by overseas operators. These casino sites are, unfortunately, not licensed or regulated by any Japanese government regulatory agency. Most of these Japan-facing gambling websites offer traditional casino games (such as, web-based bingo, poker, and slot games), along with Japanese exotics — pachinko, pachislo, Mahjong, and the likes. The same goes for overseas-operated mobile gaming websites.
Overview of Online Gambling in Japan
Japanese government authorities regulate legal gambling – most notably the Ministry of Economy, Trade, and Industry for Soccer Toto and Japan Racing Association for most racetracks. Unlike in the majority of other countries with umbrella regulations, Japan has put into motion rigorous standards that govern mostly offline gambling activities. That’s especially true when it comes to pachinko parlors, boat racing, and lotteries.
That said, the land-based gambling industry in Japan is massive. As William Norman Thompson – the author of Gambling in America – notes, the revenue raked in by the Japanese gambling market equals that of the USA. That’s despite Japan having a population that’s half that of the United States. That means Japanese gamblers plunk down twice that of their American counterparts.
The most interesting part is that Japan doesn’t feature any Western-style casinos within the island. Instead, there are over 25,000 gaming centers, most of which are pachinko parlors. They don’t offer gambling in the traditional Western sense – they claim to provide entertainment with non-cash prizes. There’s a strict ban on game-of-chance gambling in Japan, something that extends to online gaming.
Speaking of online gambling, the Japanese market is pretty small yet growing. That’s particularly true when compared to brick-and-mortar gambling. The same can be said of the size of the Japanese online gambling market in comparison to other countries. The online gaming revenue in Japan is estimated to be about $6,84 bn, which accounts for a mere 15% of the $45,6 bn for the overall gambling market.
The Japanese Online Gambling Market
It doesn’t surprise many that the online gambling scene in Japan is not massive like pachinko parlors. The country only allows betting online on public sport and lotteries. The FAFSA plays the role of writing and enforcing rigorous standards around this online recreational activity. It’s quite interesting that Japanese people can only wager on J-League games and horse/boat/motor racing events taking place in Japan.
Although these strict regulations prohibit online gambling in Japan, this hasn’t stopped foreign gambling sites making their services accessible to Japanese gamblers. However, they operate under a legal gray area that has long been overlooked by the government officials. Just recently, Japanese authorities cracked down citizens uploading money and playing on overseas casino websites. They have gone ahead and imposed fines on those caught gambling on foreign gambling sites.
The good news is that the Japanese government has indicated that it might regulate and legalize online gambling. Most politicians are interested in using the extra money from online gambling to close the revenue gap in the national budget. Some also think that legalizing it will help curb illegal gambling and prevent addiction – it’s a shame that little to no progress has been made so far to legalize online gambling in Japan.
The Numbers Don’t Lie in the Japan Online Casino Market
The Japan online casino market is among the most lucrative in the gambling industry.
- Most operators now offer exclusive services for the Japan online casino market. The increasing interest is an indication of the revenues they anticipate.
- A Japanese gambler spends up to ¥ 30,000 or $263.16 per gambling session. The figure is higher than the global average of $261 or ¥ 29,754.
- The Japan online casino market contributes over ¥ 30 trillion in annual gross domestic product to the country.
- The government is slowly flexing its grip on gambling. Reports indicate that it will allow land-based operators provided they meet the requirements.
- Japan is the leader in online gambling technology. For example, the first mobile-based gambling platforms started their operations in Japan.
- Arguably, the Japan casino market is the third-largest in the industry. Currently, the US market ranks first, with Macau taking second place.
Legal Forms of Online Gambling Per Japanese Government
As mentioned, online gambling has long been a gray area when it comes to the law in Japan. Although some Japanese residents have been arrested and fined or cautioned before for gambling at overseas casino sites, there’s no clear legal framework. Nothing has been clarified by the police or government officials on online gambling in the past. The arrests have been made mostly as a cautionary move for the rest of the gambling public.
The only online gambling that is legal and regulated in Japan focuses on the four public sports. Japanese citizens can therefore legally bet online on motorboat, motorcycling, bicycling, and horse racing. Online wagering on these sports is self-regulated and operated by the government or municipal agencies. This also goes for soccer toto and lotteries, most of which are run by municipal and provincial bodies.
(1) Casino Gaming (Prohibited)
Casino gaming is widely acknowledged as games of chance in the eyes of the Japanese government. These games of luck are illegal under Article 185 of the Japanese Penal Code. The Japan Casino Regulatory Commission plays the role of writing and enforcing the rigorous standards/regulations around this gambling activity in a land-based setting.
Online casino gaming in Japan covers traditional games of chance – think video poker, slots, and table games. If you’re an avid player of blackjack, baccarat, or slot machines, the Japanese law doesn’t allow you to bet on them online. Some overseas sites still make casino gaming accessible to the Japanese public, but it is technically illegal. Crackdowns on citizens that play online casino games have become rampant and often attract arrests.
The same gambling laws apply to online poker, bingo, and keno. Online betting on them is illegal and may get you arrested as a Japanese citizen. No local company is allowed to offer games of chance in Japan. They cannot participate online in poker tournaments like WSOP.
(2) Racing Betting (Allowed)
Japanese citizens can only bet online on…
- Motorboat races
- Bicycle races
- Horse races
- Motorcycle races
The most crucial condition is that these races must be self-regulated and operated by either municipal agencies or the government in Japan. That means you can only bet on races arranged and sanctioned by the government. Thus, Japanese gamblers cannot place bets on international races, be they F1 Grand Prix, Cheltenham Gold Cup, or the Derby. It’s a smart move because betting on only Japanese races supports the local racers and ensures the money goes back to the public.
(3) Sports Betting
The Japanese government has recently talked about legalizing sports wagering in its entirety. At the moment, citizens can be legally online on sports pools and soccer toto (another word for a 13-game jackpot that covers 13 J-League matches). The goal of legalizing online sports betting on J-League is to promote the national league and spark interest in football and other sports loved by the Japanese.
(4) Fantasy Betting
Betting online on fantasy sports is not allowed in Japan. This is equivalent to DFS, the type of online betting that brands like DraftKings and Yahoo! Sports popularized. Although DFS betting is prohibited for Japanese players, it’s allowed if the prizes are provided by a 3rd party sponsor.
(5) Lottery Betting
Online lotteries are only allowed for Japanese bettors if they are provided by a municipal body – be it a government-designated city or a prefecture. Many prefectures have taken their lottery sales online since 2018 and they pay out some of the most humongous jackpots in Asia Pacific. Take the Jumbo Takarakuji, for instance – its tickets are available 5x each year and the prize pool can reach ¥1,5 bn.
The tickets for the BIG toto by Sports Promotion Lottery are issued on the web to all Japanese citizens 18+. The massive national lottery is run by the Japan Sports Council under the watchful eyes of the MEXT (Ministry of Education, Culture, Sports, Science and Technology).
The Laws Pertaining to Online Gambling in Japan
We must mention right out of the gate that online gambling in Japan is a gray area in terms of whether it is legal or not. Only a few gambling options are permitted by the Japanese jaw, and these are most betting on public sport. Most Japanese gambling laws go as far back as the late 1900s, when residents were only allowed to wager on just two events – bicycle racing and horse races.
The Japanese government later brought in boat and motor racing to the fold. This essentially created the so-called 4 public sports that are accessible for pari-mutuel betting in Japan. Gambling in and of itself goes deep into the Japanese colorful heritage and history, as lotteries have been part of the culture since the mid-1700s. Gambling was temporarily banned in Japan in 1842 but decriminalized in the aftermath of WW2.
Toto is the only company that has received a valid license to offer legal gambling in Japan. The portal is licensed to offer sports betting on soccer pools on the 4 public sports and J-League. Each Toto wager is set at 100 yen and covers a soccer jackpot bet on 13 J-League games – the prize money shared among the winners.
Wagering on overseas bookmarkers and casinos makes up the biggest chunk of online gambling action in Japan. This is essentially an unregulated black-market for online gambling. There’s no legal framework or laws that govern how Japanese players should engage with overseas gambling sites. In fact, government agencies have recently started cracking down on Japanese people who gamble on foreign websites.
The Casino Bill which has already gone into effect in Japan not only establishes IR resort casinos but will also set the stage for legalization of online gambling in the country. The strict prohibition of internet gambling on games of chance in Japan has caused the government to question its stance in recent years. There have been talks to fully recognize, legalize, and regulate the online gambling market to curb runaway addiction. It’d help perk up the government coffers with additional revenue, especially during the post-Covid-19 recovery period.
If the Japanese government ultimately legalizes American-esque online and IR casinos, this would help address the growing debt crisis. In late 2013, the Japanese lawmakers started to put plants into action. While not much has happened in terms of legalization, more and more Japanese are embracing online gambling. The legality of the overseas online gambling operators that target Japanese remains in limbo.
Online Gambling in Japan Frequently Asked Questions (FAQs)
Does Japan allow online gambling?
YES. Japan does allow online gambling, but only for specific forms…
- Lottery betting – You can bet online on lotteries run and self-regulated by municipal bodies or the Japanese government
- Race betting – You can wager online on any of the four “public sports” – namely, motorcycle racing, horse racing, motorboat racing, and bicycle racing. Keirin is where you bet on the outcome of a nine-person bicycle race.
- Football – You can bet across all levels of competition under the Japanese Football Association.
- Social gaming – This covers friendly gambling with no money’s worth or prize in money. It could be a game of online poker among friends or a bingo game to raise money for a charity.
That being said, other forms of online gambling are not allowed in Japan …
- Casino games of chance – Casino slots and table games (most commonly blackjack, roulette, and baccarat)
- Online poker
- Online bingo games
- Sports fantasy betting
Is GGPoker legal in Japan?
NO. GGPoker is technically illegal in Japan. Both online and land-based poker games are prohibited under Article 185 of the Penal Code. In the eyes of the law, poker is seen as a game of chance just like casino gaming. The Japan Casino Regulatory Commission plays the role of writing and enforcing the rigorous standards/regulations around offline and online poker.
With that being said, GGPoker is still accessible as an overseas gambling site to Japanese poker players. They can sign up, deposit money, and play with little resistance. No Japanese player has been arrested, fined, or cautioned for playing poker on GGPoker. In fact, Japan has its own poker team on GGPoker and it allows players to deposit with Yen.
Is online gambling legal in Japan?
The direct answer is YES and NO. Yes, online gambling is legal in Japan in only some specific forms. Japanese players can legally bet online on so-called public sports…
● Horse racing – Japan has a variety of racecourses where you can attend and place a bet on your favorite horse. The Tokyo Racecourse is the most famous venue.
● Bicycle racing – Keirin is where you bet on the outcome of a nine-person bicycle race
● Powerboat racing – Motorboat races can be legally wagered on in Japan as long as they are operated and self-regulated by the Japanese government or a municipal body. In a lot of cases, these powerboat races are run and independently regulated by prefectures and government-designated cities.
● Motorcycle race – The same goes for motorcycle races run and self-regulated by prefectures, designated cities, and/or the Japanese government
● Football – You can bet across all levels of competition under the Japanese Football Association.
● Lotteries – Just like public sports, you can bet on lotteries online in Japan. The tickets for these prefecture or government-run lotteries are generally sold online several times each year. The pot prize can balloon into billions of yen.
Gambling online in the traditional Vegas-style is not legal in Japan. Article 185 of the Japanese Penal Code prohibits games of chance. By definition of the law, any online casino site, bingo, and poker are not legal in Japan.
Are there any online casinos in japan?
YES. There are many overseas online casinos that serve the Japanese market. NetBet is among the best Japan online casinos, along with Pinnacle, Spin Palace, Casumo, NetBet, and Vera&John Casino. The only big downside is that they operate under a largely gray area when it comes to regulation and licensing. The government has been arresting online casino users since 2022.