Integrated Resorts
Things took a slightly more favorable turn for gambling enthusiasts in 2016 and 2018, when the Integrated Resort Promotion Law and the IR Implementation Law were introduced.
Naturally, the introduction of these Acts attracted enormous interest both domestically and abroad. This is understandable, as the legislation allows licensed private entities to operate integrated resorts that include casinos. Online gambling, however, remains illegal under these statutes.
As a result, casino services are available only within designated areas of integrated resorts, and only if the area is authorized by the Minister of Land, Infrastructure, and Transport. All gambling activities within these casino areas are overseen by the Casino Administration Committee. In other words, stand-alone casinos cannot obtain a license and operate legally in Japan.
Under the provisions of the Integrated Resort Implementation Law, there is a cap on the number of IR areas, currently set at three. Each integrated resort may host only one casino. Licenses are valid for three years and can be renewed for another three-year term.
To mitigate problem gambling, the Japanese authorities have introduced several measures. Anyone who wants to enter a casino area within an integrated resort must pay an entry fee of ¥6,000. Additionally, visitors are limited to three visits per week or ten visits within 28 days; this limitation does not apply to non-Japanese residents.
Betting on motorcycle races, horse races, motorboat races, bicycle races, sports promotion lotteries, and lottery ticket sales are all controlled and operated by the public or quasi-public sector in offline form. Japanese football pools are also permitted under special laws.
Recently, the idea of legalizing sports betting has been discussed, but no decisions have been made so far. Social and skill-based games, whether digital or offline, are likewise unregulated.
Online Gambling in Japan
To ensure strict governmental control over gambling activities and to prevent problem gambling, authorities limit player access to casino games exclusively to specially designated areas within integrated resorts. In other words, online casino activities offered by local operators outside these areas are prohibited.
That said, there are a few exceptions: Japanese players can bet on certain sports events provided they are self-regulated and operated by municipal bodies or the national government.
Controversy arises when it comes to overseas casinos, as the current gambling-related legislation does not address such platforms. It is also unclear what penalties Japanese citizens may face if they are caught playing at these casinos. Nevertheless, in 2016 several Japanese players were convicted of illegal gambling for betting at offshore online casinos.
Social and skill-based games are likewise not specifically regulated online. However, when skill games or competitions without elements of chance offer excessive prizes, they may be banned by the Fair Trade Commission or the Consumer Affairs Agency.