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1. Market overview
Where the market sits, who runs it and under what law.
Gambling business in Japan
Japan is a country that has a special approach to gambling. A limited list of types of gambling is allowed in the country. Its main part consists of specific national entertainment such as pachinko or mahjong, in addition, players are given the opportunity to place bets on certain types of races. Anyone over the age of 20 can play in both land and online casinos.
Most modern casino games are currently banned in Japan. Paradoxically, the Japanese are the most adventurous. It is almost impossible to find empty halls to play Pachinko. In addition, slot machines are widespread in Japan.
Despite the official ban on gambling, bypasses are widespread in Japan. For example, with pachinko machines, toys that give out winnings and souvenirs, you can often find exchange offices not far from the halls. In them, players can exchange the prizes won for the cash equivalent. According to statistics, about 15 million Japanese visit Pachinko Halls every year.
Japanese gambling legislation
Currently, the Japanese Criminal Code provides for liability for organizing and participating in gambling. These provisions are set out in Articles 185, 186 and 187. In their opinion, the organizer of gambling can receive up to 5 years in prison, and the participant up to 3 years. Here is a list of legal types of gambling available to Japanese residents. :
- Pachinko and Pachyslot;
- Lottery;
- Bets on horse, bicycle, car and motorcycle racing.
- Currently casino games, sports circles and slot machines (except Pachinko) are banned.
At the end of 2016, the Japanese parliament approved a bill that would legalize gambling. Nevertheless, according to experts, the development and implementation of the licensing system will take more than one time, and Japanese casinos will open their doors to their first visitors by 2020. Gambling was legalized for two reasons:
The 2020 Olympics are planned in Japan and the existence of legal gambling establishments would be a powerful additional tool to attract tourists.
Macau and Singapore, where gambling is fully legal, have become the most sought after tourist destinations in the region.
Thus, in making the decision to legalize gambling, the government was guided by the idea of attracting additional revenue from foreign visitors.
Gambling licensing in Japan
At the moment, the only type of license for private companies is a permit to open a hall with pachinko machines. It can be obtained by a company run by a person who has no criminal record and is not affiliated with the Mafia. Before opening the hall, the police check all the slot machines in accordance with the required technical requirements. Pachinko halls can not be located near the following facilities:
- Schools;
- Higher education institutions;
- Public libraries;
- Medical institutions;
- Kindergartens.
There is no special license for this type of activity, but it must be renewed periodically. The halls are not accessible to persons under 18 years of age.
Online casinos in Japan
Under current Japanese law, there is no legal definition of online gambling. There are also no rules governing this gaming segment. It is not yet possible to obtain a license to operate the site, which provides the ability to gamble remotely.
Although there is a fine for participating in gambling, this measure practically does not apply to online casino players. The most popular gaming site in Japan is Netkeiba.com, which is dedicated to betting on racing results.
The most popular online casino is Bitcasino.io. This is the first virtual gambling house to use Bitcoin as its main currency. In second place is Verajohn.com Casino.
The most popular slot machines in Japan
Pachinko or pachislot is the only legal slot machine that exists in Japan. By its very nature, it is a cross between a pinball and a classic video cut. During a pakislot game, the player cannot win with real money. In the game halls you can find cars based on such popular games as Silent Hill and many more. There are more than 10,000 Pachinko halls in the country.
In online casinos, Japanese players most often prefer the following slot machines:
- Gonzo quest;
- Starburst;
- King of Dragons;
- The big bad wolf;
- Aloha! The cluster pays.
Pachinko emulators are also available on the internet, but they are not so popular among the Japanese. Eastern board game Mahjong is also popular in Japan. It is an analogue of Craps, often played on the streets. Despite the official ban, mahjong underground halls are prevalent in the country, most of which are controlled by the yakuza. There is also an official professional league of Mahjong in Japan.
Game developers
The manufacturer, named Konami, has long been the largest in Japan. In 2005, the company moved its headquarters to Las Vegas. He started working back in 1969. The manufacturer specializes not only in gaming machines, but also in video games. It was this company that created such bestsellers as Dance Dance Revolution, Silent Hill Horror Series, the first computer tactical spy game Metal Gear, and more.
The following events are popular among the slot machines under the Konami brand:
Ancient Dragon;
- The shores of China;
- African diamonds;
- Rocky;
- Chip City.
Prospects for the development of gambling in Japan
The prospects for the Japanese gambling business can be promising. Leading representatives of the international gambling market have already expressed a desire to start working in Japan. There is information that the first toy house in the country will be opened by the American operator Sands. According to the head of the corporation Sheldon Adelson, the project is planned to invest about $ 10 billion. According to industry analysts, the gambling business contributes $ 25 billion annually to the Japanese budget.
It is planned that the construction of casino hotels will be carried out mainly in Tokyo. According to the Secretary General of the Cabinet of Ministers of Japan Yoshihide Suga, the share of profits from gambling houses will be received not only for the period of the Olympics, but also after its completion.
The current Japanese laws do not give special freedom to players and operators, however, after the adoption of the law on legalization, the situation should have changed radically.
- Region
- Asia-Pacific
- Legal status of gambling
- Restricted
- National regulator
- No single regulator is named in the source; unlicensed gambling is policed under the Criminal Code, and pachinko halls are subject to police technical checks before opening.
- Regulator website
- Under verification
- Key legislation
- Articles 185–187 of the Criminal Code, under which organising gambling carries up to 5 years' imprisonment and participating up to 3 years. A bill approved by the Japanese parliament at the end of 2016 would legalise casino gambling, though the source notes the licensing regime was expected to take considerable time to implement, with casinos potentially opening by 2020.
- Minimum player age
- 20
2. Allowed verticals
What may be offered, and whether it needs a licence.
| Vertical | Status | Licence required | Notes |
|---|---|---|---|
| Slots / gaming halls | Permitted with a licence | Yes | Pachinko and pachislot are the only legal slot-style machines; operators need a hall permit, which must be periodically renewed, but no distinct "licence" category exists. All other slot machines are banned. |
| Lottery | Permitted | No | Listed among the legal forms of gambling in the source. |
| Land-based casino | Prohibited | No | Banned under the Criminal Code at the time of the source. A bill approved in late 2016 aimed to legalise casino gambling via a future licensing system, with casinos potentially opening by 2020. |
| Sports betting | Restricted | No | General sports betting and sports pools ("sports circles") were banned; only bets on horse, bicycle, motorboat and motorcycle racing are permitted. |
| Online casino | Prohibited | No | No legal definition of online gambling existed under Japanese law at the time of the source, and no licensing route was available, though enforcement in practice did not target individual online players. |
3. Licensing framework
What a licence is, what it costs and what the holder must have in country.
- B2C licensing
- Under verification
- B2B licensing
- Under verification
- Licence term
- Under verification
- Application fee
- Under verification
- Annual fee
- Under verification
- Local presence required
- A pachinko-hall operator must have no criminal record and no affiliation with organised crime (named in the source as "the Mafia"); halls are inspected by police before opening and may not be located near schools, universities, public libraries, medical institutions or kindergartens.
- Share capital required
- Under verification
5. Technical requirements and compliance
What has to be certified, recorded and kept inside the border.
- Certification and game testing
- Under verification
- Responsible gambling
- Pachinko halls are not accessible to persons under 18, despite the general gambling age in the source being 20. Winnings at pachinko are formally non-monetary (toys or tokens), exchanged for cash at separate, informally tolerated exchange offices near the halls.
- AML regime
- Under verification
- AML and KYC
- Under verification
- Server and data localisation
- Under verification
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Planning to enter Japan?
A regulatory assessment reads Japan's regime against your own products, licence class and corporate structure, and says what follows for each: what you may offer, what you must hold, what it costs and what will change.
Who wrote this
- Last reviewed
Regulatory Intelligence disclaimer
Information is provided for general regulatory intelligence purposes and should not be treated as legal advice for a specific transaction or business model. Regulatory requirements may change and should be confirmed before market entry or implementation.