Jul 16 (News On Japan) - The Japanese iGaming market is somewhat complicated. Certain forms of gambling and online gambling are legal, but only when established and run by the government and their parties.
Recent law changes, in 2016 and 2018, did little to clear up the confusion and, if anything, only made matters less clear.
Despite that, the country has an online gambling industry worth more than $6 billion annually and the country has one of the highest revenues per player of any nation in the world.
Use Of Offshore Casinos
As you can see from this online casino list by TechReport, while there are a lot of offshore casinos specifically targeting Japanese players, there are no legal online casinos established in the country. Online gambling expert, Ryohei Kiriyama advises players to use caution when gambling online in Japan as the laws are prone to change.
Because it is, strictly speaking, illegal for Japanese citizens to partake in iGaming while in the country, many players use crypto gambling websites. Crypto gambling offers anonymity and privacy, preventing authorities from tracing player details.
Laws On Physical Gambling
Physical casinos are illegal in Japan, although some parties have attempted to lobby the government to change this. This means all forms of casino games and slots are illegal, as well as poker and bingo. Some sports betting, including offline and online, is permitted but only where the events and the betting are run by the Japanese government or municipal bodies.
The same is true of lotteries, with online government lotteries proving popular as a result. Social and skill games are not prohibited, but any that include large prizes might find themselves banned and the organizers punished under the law.
Recent Law Changes
Until 2016, all forms of gambling and betting were illegal if provided by private companies or individuals. 2016 saw the introduction of the Integrated Resort Promotion Law, and in 2018, the Integrated Resort Implementation Law was introduced. These saw regulated gambling permitted within Integrated Resorts, but still prohibited online gambling.
There are currently only three areas where Integrated Resorts can be established and the license application is somewhat long-winded. The new laws and the subsequent establishment of Integrated Resorts have seen the average spending of overseas tourists increase. Operating casinos outside these regions still leads to arrest.
Online Gambling Laws
Despite these changes to physical gambling laws, online gambling remains largely prohibited. It is illegal for iGaming casinos to be established within Japanese territory, and it is illegal for Japanese players to gamble at any online casinos when they are on Japanese soil. And, in recent years, Japan has been cracking down on these laws, arresting large groups of players for enjoying gambling online.
Offshore And Cryptocurrency Websites
As a result of these arrests and the current prohibition, Japanese players have to use overseas casinos and many use anonymous sites including those that accept cryptocurrency. These sites do not require users to submit their personal details, while crypto payments are also made anonymously, enabling players to remain under the radar.
Otherwise, these types of casinos operate the same and provide the same games and services as other casinos. Players can deposit and withdraw funds, albeit to a cryptocurrency wallet, and they can enjoy a range of casino table games, slots, and even live poker, in some cases.
Japan has a love of video gaming, but because of current laws and the prohibition of online gambling, this has not yet carried over to iGaming. Players who wish to play casino games, slots, and poker, must use offshore casinos, and many opt for the anonymity of cryptocurrency-based accounts. Although there are regular discussions between the government and other groups, there is no sign of the law changing in the immediate future.
