Dec 06 (News On Japan) - Japan is best known for sushi, samurai and the iconic Mt. Fuji. Sports betting isn’t the first industry associated with the country.
However, with the government changing its stance on gambling (albeit slowly), will offshore sportsbooks look to move into Japan as a result?
Current Structure Lacks Clarity
The Japanese government acknowledges ancient traditions and customs. As such, gambling and betting can be seen as taboo and unethical by older and select people in the country – therefore, many gambling activities were outlawed in the nation for many years. However, by the same merit, pachinko, the Japanese gambling pastime, has always been celebrated as a national treasure.
Local Legislation Allows ‘Public Sports’ Betting
Kōei kyōgi is the Japanese phrase for ‘public sports’. This refers to four different sports that can be gambled on legally: horse racing, bicycle racing, powerboat racing, and asphalt speedway motorcycle racing. If sports bettors want to bet on the outcome of these sports, they can head to a local shop or booth selling tickets for these wagers. The local governments usually set the rules and odds for these, so players shouldn’t expect to get too rich from these activities. Between 2020 and 2023, the number of players is said to have grown by around 60%, showing that the Japanese public has a surging interest in sports betting.
Some of these booths operated by TOTO (and some select other brands) also accept sports bets on specific soccer matches, which have become particularly interesting as Japan has performed well in recent international soccer tournaments. In some cases, baseball bets will also be accepted, but we don't currently have all encompassing examples of offshore sportsbooks for Japanese players at this stage, certainly not in the conventional sense.
Online Gambling Still Illegal in Japan Amid Ambiguity
Officially, Japanese law does not allow companies to operate online casinos or people to use them. However, there is little legislation on the finer details, i.e., whether it is still outlawed if the casino is hosted elsewhere or if Japanese players play on offshore sites. As such, this ambiguity has made it difficult to enforce the rules. Many companies and sports bettors skirt these rules.
However, one of the major pitfalls is that many Japanese banks will not allow transactions with gambling sites due to their non-legal status. Users must use an overseas account or another financial service for these pastimes.
In August 2024, a government spokesperson stated that it would be ‘cracking down’ on offshore sites from operating in Japan amid a report earlier in the year that many young Japanese people had encountered financial problems or made them worse after an upturn in gambling activity.
Domestic Sports Can Be Bet On...In Limited Forms
Remember earlier in the article that it said that some gambling shops and booths would allow customers to bet on soccer and baseball? Well, it’s relatively commonplace, but there are restrictions on what the bettor can predict. For soccer, this is known as ‘J League Pools’, where the gambling shop will offer customers the chance to bet on 10-15 fixtures from a wide range of games over a set weekend from the various tiers of Japanese football.
If a player accurately predicts all the results, they can win millions of yen—however, the odds are always the same, and players are only allowed to win a certain amount. In many ways, it replicates a lottery-style game. The exact process is allowed on baseball results. While soccer is popular with the newer generation in Japan, a lot of people prefer baseball, which therefore competes with soccer as the favorite for sports betting.
Some companies with persistence have been allowed to operate the same lottery-style betting system in foreign sports leagues, especially in football and baseball divisions. However, some sports bettors still long for the choice of markets that are available in other countries, such as being able to wager on the goal scorers, results, whether both teams will score, etc.
Illegal Sports Betting in Japan
There are plenty of dimly lit bars in Japan's seedy underbelly. Whether they are operating illegal rackets or simply wagering amongst themselves, there are certainly more than a few unlawful ways to bet on sports. The Yakuza operate a few illicit businesses that accept under-the-counter transactions, usually in cash.
However, it is not advised to participate in such activity due to the unknown consequences and the trouble that players could get into with both illicit parties and law enforcement. Anyone wandering around Roppongi or Kabukicho in Tokyo for long enough will undoubtedly come across some shady-looking establishment.
In 2030, the government plans to eradicate these establishments by opening its first land-based casino in Osaka, which, in theory, will attract gamblers who are going to illegal establishments.
