Japan is a country with a rich culture and a thriving economy. It has become a popular travel destination for tourists all over the world, known for its unique blend of traditional and modern influences. However, when it comes to gambling, Japan has a complex history and legal landscape that may be confusing for both locals and visitors.

In recent years, Japan has made significant changes to its gambling laws, causing much speculation and interest from the international community. With the upcoming 2020 Summer Olympics in Tokyo, many are curious about the current state of gambling in Japan and what potential impact these changes may have on the industry.

In this article, we will dive into the details of gambling laws in Japan, exploring its history, current regulations, and what the future may hold for the world of gambling in this fascinating country.

I. A Brief History of Gambling in Japan

To understand the current state of gambling laws in Japan, it is important to take a look back at its history. The roots of gambling can be traced back to ancient times in Japan, where games such as dice and card games were popular among the ruling class.

However, in the late Edo period (1603-1868), gambling was banned by the government due to concerns over social disorder and crime. This ban remained in place even after the country opened up to foreign influences in the late 1800s.

It wasn’t until 1907 that Japan legalized certain forms of gambling, such as bicycle racing and horse racing, to generate additional revenue for the government. Over the years, other forms of gambling were also legalized, including lotteries and pachinko.

II. Current State of Gambling Laws in Japan

Today, gambling in Japan is governed by the Criminal Code and the Law for Control of the Amusement Trade. Under the Criminal Code, gambling is defined as “the act of staking or risking something of value on uncertain events, such as games of chance and sports betting.”

The Law for Control of the Amusement Trade further restricts gambling activities by requiring operators to obtain a special permit from the government. The types of gambling that are currently allowed in Japan include horse racing, bicycle racing, powerboat racing, soccer pools, lottery, and pachinko.

A. Horse Racing

Horse racing is one of the most well-established forms of gambling in Japan. It is regulated by the Japanese Racing Association (JRA) and is the only form of sports betting allowed in the country.

The JRA was established in 1954 and operates ten racecourses throughout Japan. Punters can place bets at the track or at off-track betting facilities, where races from all over Japan are broadcasted.

B. Bicycle Racing

Bicycle racing, also known as keirin, was legalized in 1948 to support the reconstruction of Japan after World War II. It is regulated by the National Sports Authority and operates nine velodromes throughout the country.

Similar to horse racing, punters can place bets at the track or at off-track betting facilities. However, unlike horse racing, keirin is often seen as a form of entertainment rather than a serious gambling activity.

C. Powerboat Racing

Powerboat racing, also known as motorboat racing, is another form of gambling that was legalized in 1948. It is regulated by the National Sports Authority and operates five boat racing venues throughout Japan.

This form of gambling involves six boats competing in a race, with punters placing bets on which boat will come in first, second, and third place. Similar to horse and bicycle racing, there are also off-track betting facilities available for punters.

D. Soccer Pools

Soccer pools were introduced in Japan in 1960, making it the first form of sports betting to be legalized in the country. This form of gambling is operated by the Japan Soccer Pool Foundation and involves predicting the results of soccer matches.

Punters can purchase tickets with their chosen predictions at authorized retail outlets. The revenue generated from soccer pools is used to fund sports-related activities and projects in Japan.

E. Lottery

Lottery games have been legal in Japan since 1945 and are operated by the Ministry of Finance through various local governments. There are several types of lottery games available, including scratch cards, numbers games, and traditional draw lotteries.

Proceeds from lottery ticket sales are used for public welfare, such as funding disaster relief and educational scholarships.

F. Pachinko

Pachinko is a popular form of gambling in Japan that originated in the early 1900s. It is a combination of pinball and slot machines and is often seen as a form of entertainment rather than a serious gambling activity.

Although pachinko does not involve cash payouts, players can exchange their winnings for prizes, which can then be exchanged for cash at nearby redemption centers. In recent years, there has been much controversy surrounding pachinko due to its links to organized crime and potential for money laundering.

III. Recent Changes to Gambling Laws in Japan

In July 2018, Japan made significant changes to its gambling laws with the passing of the Integrated Resort Implementation Bill. This bill legalized land-based casinos, also known as integrated resorts, in certain designated areas in Japan.

The government’s decision to legalize casinos was primarily driven by the hopes of boosting tourism and stimulating economic growth. It is estimated that integrated resorts could bring in billions of dollars in revenue each year, making it a highly profitable industry for the country.

Under this new law, three integrated resorts will initially be allowed to operate in Japan. These resorts will include casinos, hotels, conference facilities, and other non-gambling amenities.

In addition, the government has also implemented stricter regulations for existing forms of gambling in Japan. Pachinko halls are now required to obtain a special certification from the government to ensure proper management and prevent money laundering.

IV. The Future of Gambling in Japan

The implementation of integrated resorts in Japan is expected to have a significant impact on the country’s economy and gambling industry. However, there are still many uncertainties and challenges that need to be addressed.

One major concern is the potential negative social effects of casinos, such as problem gambling and organized crime. To address these issues, the government has imposed strict regulations and limits on casino operations, including a limit on the number of visits per month for Japanese citizens and a ban on ATMs inside casino premises.

Another challenge is the delay in the development of integrated resorts due to the COVID-19 pandemic. The original plan was to open the first resort before the 2020 Tokyo Olympics, but with the postponement of the games, this timeline has been pushed back.

Overall, the future of gambling in Japan remains uncertain, but it is clear that the country is moving towards liberalizing its gambling laws to accommodate the growing demand for casinos.

V. Comparing Japan’s Gambling Laws with Other Countries

To understand the uniqueness of Japan’s gambling laws, let’s take a look at how they compare with other countries.

A. Australia

Australia is known for its relaxed attitude towards gambling, with its citizens having one of the highest gambling participation rates in the world. All forms of gambling are legal in Australia, with the exception of online casino gaming. Some popular forms of gambling in Australia include sports betting, lotteries, and casino gaming.

B. United States

In the United States, gambling laws vary from state to state. Some states, like Nevada and New Jersey, have legalized casino gaming, while others have more restrictive laws. Online gambling is also only legal in a few states.

The most popular form of gambling in the US is lottery games, with all but six states offering some form of lottery. Sports betting has also gained popularity in recent years, with several states legalizing it after a Supreme Court ruling in 2018.

C. China

In China, gambling is illegal except for a few forms that are controlled by the government, such as the national lottery and sports betting. However, Macau, a special administrative region of China, is known as the “gambling capital of the world” and offers a wide range of casino games to both locals and tourists.

VI. The Impact of COVID-19 on Gambling Laws in Japan

As mentioned earlier, the COVID-19 pandemic has had a significant impact on the development of integrated resorts in Japan. In addition, it has also caused major disruptions to the existing gambling industry in the country.

With social distancing measures in place and travel restrictions, many forms of gambling, such as horse racing and pachinko, have seen a decline in revenue. This has forced operators to find alternative ways to generate income, such as increasing online betting options.

Furthermore, with the postponement of the Olympics, the influx of tourists that was expected to boost the integrated resort industry has been delayed, causing uncertainty for investors and developers.

Conclusion

In conclusion, Japan’s gambling laws are complex and ever-evolving. From its ancient roots to the recent legalization of integrated resorts, Japan has come a long way in shaping its gambling landscape. While there are still challenges and uncertainties ahead, it is clear that the country is moving towards a more liberal approach to gambling.

Whether you are a local or a visitor to Japan, understanding the current laws and regulations surrounding gambling is crucial to ensure a safe and enjoyable experience. As the industry continues to grow and adapt, it will be interesting to see how Japan’s unique blend of traditional and modern influences will shape its gambling landscape in the future.