The Current Situation Surrounding Online Casinos Laws in Japan
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Gambling is illegal in Japan, except for horse racing and pachinko. The law makes a few exceptions to placate the public. Authorities are considering relaxing the ban on gambling to promote tourism. The current situation surrounding the online casinos in the country is discussed.
Gambling is illegal in Japan under Article 185 of the Penal Code. Anyone who operates a business that provides this kind of entertainment faces a minimum of three months in jail and a maximum of five years in prison. Pachinko generates around 16.03 trillion in income annually.
The existing regulations in Japan restrict gambling to activities that are considered "monetary enjoyment" or governed by other rules. Even for approved forms of gambling, the service provider has to get permission from the appropriate authorities. Supreme Court of Japan has determined that money cannot be considered 'amusement'
Gambling is defined as betting on the result of a game of chance to fight for a reward in the form of property or asset. The Old Supreme Court ruled in 1911 that the "result of the game" generally refers to a victory in a contest of chances. Japanese law prohibits playing any game that depends on chance.
Online casinos are banned in Japan. The National Diet declared internet gambling illegal in 2013. Online gambling is illegal regardless of the service provided.
In 2013, the Liberal Democratic Party and a cross-party coalition introduced a bill to the National Diet calling for the legalization of casinos. The Act for Development of Specified Complex Tourist Facilities Areas was signed into law in July 2018, but it will become effective in January 2019. Gambling is allowed under this law only in certain areas of Japan.
The 2019 Enforcement Order states that the combined floor space of all IR casinos in a resort must be less than 3%. The license has a maximum duration of three years under the Act before it mustbe renewed. Foreigners are welcome to visit the facility an unlimited number of times at no charge. Japanese people will be required to pay an entrance fee of around 6,000 each time they enter and leave.
There will be unprecedented shifts in the Japanese gaming market as a result of the recent reforms. IRs will set up in Osaka, Nagasaki and Wakayama.
