Betting Regulations in Japan 

Betting regulations in Japan are among the most complex in the world. Under the Penal Code of Japan, most forms of gambling are technically prohibited and can result in serious criminal penalties. 

However, there are several legal exceptions regulated by the Japanese government, national and local governments, and special laws that allow certain forms of gambling under strict laws and close supervision.

From sports betting to pachinko parlors and takarakuji lottery tickets, gambling in Japan follows a unique legal framework deeply influenced by Japanese culture, economic goals, and growing interest in the casino industry. 

History of Gambling in Japan

Gambling in Japan has existed for centuries and is closely tied to Japanese culture, social customs, and regional traditions. Early forms of gambling began in the Edo period when people played chance-based games at festivals, markets, and temple gatherings. Many of these early games were technically prohibited, but they were tolerated because such activities were linked to local entertainment and cultural events.

By the late 19th and early 20th centuries, the Japanese government began tightening gambling laws and restricting casino activities, leading to the development of the modern criminal code and penal code, which formally identified illegal gambling and criminal penalties. During this period, traditional games like mahjong became widespread, and underground gambling places operated despite stringent laws.

In the post-war era, the creation of regulated sports—including horse racing, bike racing, and boat racing—marked a major shift. These activities were legalized as public sports, generating revenue for national and local governments and creating legal exceptions within otherwise strict gambling laws.

The growth of pachinko parlors in the 1960s and 1970s dramatically expanded Japan’s gambling sector. Pachinko eventually evolved into pachislot and modern slot machines, contributing to Japan becoming one of the world’s largest gambling markets—despite the fact that most forms of casino gambling remain illegal under Japanese law.

Today, the history of gambling in Japan continues to evolve as the country moves toward regulated casino operators and integrated resort developments. This transition reflects a combination of economic goals, tourism ambition, and careful consideration by lawmakers, who balance traditional concerns with interest in expanding the casino sector under the rising sun. 

Japan’s Betting Regulations: Gambling Laws and Legal Framework 

Japan relies on an interconnected framework of national legislation to regulate gambling and determine what is legal or illegal under its betting regulations. The basic act that serves as the foundation is the Penal Code, which clearly prohibits most forms of gambling and establishes criminal penalties for illegal gambling operations. 

The Takarakuji Law governs national and prefectural lotteries, including scratch cards and convenience-store lottery tickets, while the Public Sports Law defines the legal structure for government-approved sports betting, such as horse racing, boat racing, bicycle racing, and auto race wagering.

In recent years, the Integrated Resort Promotion Law introduced a new framework for legal casino operators, allowing casino gambling inside regulated resort complexes while attempting to reduce gambling addiction among Japanese residents.

These rules operate alongside additional requirements enforced by the National Police Agency, local governments, and administrative bodies that supervise sports, prize pool distribution, and enforcement of taxation rules.

Regulatory oversight also involves the Ministry of Internal Affairs, which works with national and local authorities to supervise revenue distribution, administrative procedures, and compliance with laws related to gambling. 

Japanese authorities also monitor the movement of criminal proceeds and enforce restrictions on casino activities through licensing rules and close examination of corporate ownership to prevent illegal gambling or involvement of organized crime.

Although many of these laws formally prohibit online casinos, mobile gambling apps, and illegal online gambling, enforcement remains challenging due to offshore servers, private sector operators, and foreign websites that target Japanese people and foreigners.

In some cases, internet service providers receive requests to block unlicensed gambling platforms, but these measures are not always effective, and illegal casino services continue to operate online. 

Illegal Gambling in Japan

Under Japan laws, illegal gambling refers to activities that involve staking money or cash prizes on casino games, online casinos, or gaming activities not specifically approved by the national and local governments. The Penal Code treats casino activities, private gambling events, and illegal online gambling as criminal offences. 

Gambling becomes illegal when wagers are solicited from unspecified persons, meaning the general public, rather than a private group engaged in non-commercial recreational play. 

Foreigners should also be cautious, as illegal online gambling sites operate outside Japanese jurisdiction. Even if these online casino sites are accessible from Japan, placing bets may still violate the Criminal Code depending on the online gambling activity and winnings involved. 

Criminal Code and Penalties

According to the gambling laws under the Criminal Code and Penal Code, engaging in unsanctioned gambling may lead to criminal penalties, imprisonment, or fines. Japanese authorities can prosecute operators and participants. 

Mahjong parlors, private poker rooms, and unauthorized online casinos fall under illegal activities unless no cash prizes are exchanged.

Is Online Gambling Legal in Japan?

Japan treats online gambling and online casino sites as generally illegal unless they involve government-approved sports. Internet casinos operate offshore, targeting Japanese people and foreigners, but such online gambling activities often violate Japanese law. Many countries face similar challenges, but Japan is particularly strict. 

Legal Gambling Operations in Japan: Horse Racing, Motorcycle Racing, Auto Racing, Bicycle Racing, Boat Racing, etc.

Gambling in Japan is partially legal thanks to a set of legal exceptions. While the Penal Code bans gambling place operations and casino games, Japan allows several government-regulated gambling activities, including:

• Horse racing
• Bicycle racing
• Boat race betting
• Motorcycle racing
• Powerboat racing
• Sports promotion lottery (Toto) 
• Scratch cards 
• Lottery 
• Pachinko
• Pachinko parlors 

Many sports events are organized under special laws that allow betting on competitive activities while regulating revenue distribution to governments. 

Horse racing is currently the most widespread form of legal gambling in Japan. It is regulated by the Japan Racing Association and the Japan Sports Council, while non-JRA tracks operate under local governments.

Bets are allowed at racetracks, mobile gambling apps, and authorized online portals. Foreigners can legally place bets at these venues, including JRA and local racecourses.

Legal sports extend beyond horse racing. Motorcycle racing, powerboat racing, and bike racing are sports authorized by laws that allow bettors to wager on outcomes through official booths and mobile gambling sites.

In Japan, a given lottery is treated as a government-approved activity under the Takarakuji system, which allows residents to purchase tickets within designated prefectures and participating cities. 

Integrated Resort and Casino Licenses

In recent years, Japanese lawmakers introduced the Integrated Resort Promotion Law to legalize casino gambling under strict regulation. Japan will issue limited licenses, allowing casino operators to build resort complexes containing hotels, entertainment venues, and casino activities.

Future resort complexes are expected to offer regulated casino games, including table games and slot machines, but only within designated areas controlled by licensed operators.

Entry fees, visit limits, and identification checks aim to reduce gambling addiction. Japanese residents must present their My Number cards, while foreigners enter freely. Target regions include Osaka Prefecture and other major cities interested in the casino sector’s tourism potential. 

Japan Gambling Industry and Revenue

Japan’s gambling sector produces billions of yen every year through legal loopholes, sports betting, and pachinko parlours. 

Pachinko alone accounts for a massive share of entertainment spending, with many pachinko parlours operating like casinos—minus direct cash payouts. Many pachinko parlours now feature pachislot games and slot machines that further blur the line between amusement centers and casino-style gameplay. 

Japanese Culture and Gambling

Gambling in Japan is deeply influenced by Japanese culture, ethics, and societal caution about gambling addiction. Public awareness campaigns, restrictions on casino activities, and entry limitations for Japanese residents all reflect the cultural concerns surrounding problem gambling and gambling in Japan as a social issue.

FAQs about Gambling in Japan