Explaining Japan’s Casino Law and its Impact on the Gaming Industry

Games

Written by:

Reading Time: 4 minutes

The vast majority of gambling activities have been outlawed in Japan for a good number of years. Pachinko, purchasing lottery tickets, and participating in various sports betting were the only alternatives.

At the end of the 2010s, many politicians began to recognize the benefits of legalizing various types of gambling. As a direct consequence, the new Japanese gambling law that authorizes casinos in the manner of resorts has been approved.

This page will discuss the many legal aspects of gambling in Japan and answer any questions. Therefore, continue reading to learn about the new casino bill, the many possibilities for i-Gaming, sports betting, and the Japanese lottery.

The Institutional Structure of Laws and Regulations

Gambling is prohibited under current Japanese legislation under Article 185 of the Penal Code, except for wagering on something for momentary amusement, specific events, or sports permitted under special laws. This concerns the “four public sports” + a few more entertainment activities, including:

  • Bicycle racing
  • Powerboat racing
  • Horse racing
  • Motorcycle racing
  • The public lottery
  • Japanese Football Pools

They’re all run by local governments or government corporations. In order to run these gambling operations, licenses are necessary, and the legislation stipulates that these licenses can only be issued to municipal governments or businesses affiliated with the government.

What Are the Legal Elements Required for An Activity To Be Regarded As Gambling?

Even though the Japanese Penal Code does not provide a statutory definition of “gambling,” the term is generally understood to mean “placing things of value against the outcome of events where the outcome is uncertain because it is subject to the element of chance.”

In other words, “placing things of value against the outcome of events where the outcome is uncertain because it is subject to the element of chance.” It is possible to compare playing a game of skill to gambling at a casino, like https://kamikajino.jp/casinos/casino-me/, because the winner of the game is ultimately determined by chance.

In Japan, gambling was described to have been carried out by just promising to deposit a bet, according to a judgment handed down by the Court of Great Judicature on April 19, 1925. Additionally, the decision said that it also concerned:

  • The actual offering of stakes
  • The result of the activity that was to have been decided upon
  • The winnings that were to have been distributed
  • The action of placing a wager on something for the sake of amusement

If one of the components mentioned earlier is lacking, the activity will often not be regarded as gambling and, as a result, will not be required to have a gambling license. Free games, in which a player is not forced to deposit a bet, as well as games in which nothing of value is rewarded (such as virtual rewards or ‘extra play’ that cannot be traded for other goods), are not considered to be gambling because of this reason.

Gambling Services Provided by Offshore Providers

A discussion in the Japanese Diet Act over the question of whether or not internet gambling should be considered illegal took place on November 1, 2013. Next, in 2016, there was a case in which several Japanese players were convicted of illicit gambling for participating in an online gambling game that an offshore online gaming service provider was distributing through a server outside of Japan.

In this particular instance, it was mentioned that the relevant gaming website had been providing descriptions written in Japanese since September 2014. It was available from the early evening until after midnight Japan time. In addition, a dealer must be a Japanese person, and users can communicate with a dealer in Japanese.

Efforts to Legalize

There were discussions inside the administration of Japan’s Liberal Democratic Party (LDP) about the possibility of opening casinos to increase tourism. It is still against the law in Japan to run a casino, and the recent story involving sumo wrestlers wagering on baseball has brought international attention to the issue.

In the year 2000, former Mayor Ishihara proposed constructing casinos in Odaiba; however, despite the significant level of enthusiasm shown by the people, the project did not receive complete approval.

One concern presented against the advances was that because Japanese people are not accustomed to gambling, they would be more likely to become addicted. Floating casinos provide another avenue that might be pursued in Japan to expand the gaming sector of the country’s economy. Ishihara has been a strong proponent of the concept of gambling on boats.

In 2015, Japanese lawmakers presented the Integrated Resort (IR) Enabling Act to the Diet, which marked a significant step forwards in the country’s efforts to legalize casinos.

Legalization and Bidding

The Japanese Diet unanimously passed a measure in July 2018 that legalizes the operation of casinos nationwide. Three casinos will be built in integrated resorts (IRs) style and located in three separate cities.

The IRs will come with limitations, including limiting the number of times a Japanese resident may visit a casino to three times per week or ten times per month, respectively. In addition, there will be a 6,000 yen admission fee for Japanese tourists, which is intended to deter addiction.

The “Request for Proposal” (RFP) procedure was initiated in 2019, with Osaka as the pioneering city. Following is a list of the five firms that submitted applications for integrated casino resort licenses in Osaka:

  • Wynn Resorts
  • Genting Singapore
  • MGM Resorts
  • Las Vegas Sands
  • Melco Resorts

In light of the postponement of the Tokyo 2020 Olympics and the ongoing global coronavirus outbreak, Las Vegas Sands decided on May 13, 2020, to withdraw its application to operate an IR in Japan.

Casino Administration Committee

The Japanese government officially constituted the Casino Administration Committee on January 7, 2020. As an independent government department, its primary responsibilities include supervising and managing Japan’s IR operators. Michio Katamura serves in the role of chairman. It will have the authority to award and cancel casino licenses and probe casino operators and personnel associated with the industry.