Most gambling is prohibited, but exceptions exist for public sports betting, lotteries, pachinko, and licensed casinos in integrated resorts. Online gambling is illegal.
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Most gambling is prohibited under Japan's Penal Code, with only specific exceptions allowed by special laws.
The Integrated Resort (IR) Laws of 2016 and 2018 legalized casinos only within licensed land-based IRs.
Online casino gambling is illegal in Japan, including using offshore sites, and is actively prosecuted.
Publicly operated betting on horse, bicycle, motorboat, and motorcycle races, plus lotteries and pachinko, are legal exceptions.
Casino licensing, regulation, and oversight are handled by the Japan Casino Regulatory Commission, established in 2020.
Japanese nationals face strict casino entry limits and a mandatory entrance fee to deter addiction.
Private, unlicensed gambling is a criminal offense, with penalties ranging from fines to imprisonment.
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Legislation
Primary Legislation
Japan’s gambling legal framework is defined by strict prohibitions with specific statutory exceptions. The core structure consists of the following primary laws:
Penal Code of Japan (Act No. 45 of 1907): The Penal Code is the fundamental legal instrument prohibiting gambling activities in Japan. Chapter 23 (Articles 185–187) criminalizes most forms of gambling, including both participation and the operation of gambling venues. However, it provides limited exceptions for activities deemed to be for “momentary amusement” or those specifically authorized by other statutes.
Public Sports and Lottery Laws: Several special laws carve out exceptions for state-sanctioned gambling activities:
Horse Racing Act: Legalizes and regulates pari-mutuel betting on horse racing under government control.
Motorboat Racing Act: Permits betting on motorboat races, also under strict government oversight.
Bicycle Racing Act: Governs betting on keirin (bicycle racing), similarly operated by public authorities.
Auto Racing Act: Allows betting on motorcycle racing, again under public sector management.
Act on the Administration and Operation of Public Lotteries: Authorizes and regulates the sale and operation of government lotteries.
Pachinko Regulation: Pachinko, a popular gaming activity, is technically not classified as gambling under Japanese law due to its unique structure, but it is regulated under the Entertainment Establishments Control Law and related ordinances.
Integrated Resort (IR) Legislation:
Act on Promotion of Development of Specified Complex Tourist Facilities Areas (IR Promotion Act, 2016): Establishes the legal foundation for introducing casino gaming within integrated resorts (IRs) in Japan.
Act on Development of Specified Complex Tourist Facilities Areas (IR Implementation Act, 2018): Sets forth the regulatory framework for the operation, control, and oversight of casino gaming within approved IRs, including the types of permitted games and the structure of casino business operations.
Regulatory Authority
Oversight and enforcement of gambling laws in Japan are divided among several government bodies, each with distinct responsibilities according to the type of gambling activity:
National Police Agency (NPA): The NPA is the principal authority responsible for enforcing the Penal Code’s gambling prohibitions, investigating illegal gambling, and maintaining public order.
Japan Casino Regulatory Commission (JCRC): An independent administrative agency established to regulate, supervise, and license casino operations within Integrated Resorts. The JCRC is tasked with ensuring compliance with the IR Implementation Act, conducting suitability checks, and overseeing casino-related activities and equipment.
Ministries and Local Authorities:
The Ministry of Agriculture, Forestry and Fisheries and the Ministry of Land, Infrastructure, Transport and Tourism oversee public sports betting (horse racing, motorboat, bicycle, and auto racing) through designated public corporations and local governments.
The Ministry of Internal Affairs and Communications supervises the operation of public lotteries.
Local police and municipal authorities regulate pachinko parlors and other amusement businesses under the Entertainment Establishments Control Law.
License Types
Types of Gambling Licenses in Japan
Casino Business License (Integrated Resort - IR): The only form of private gambling license currently available in Japan is for casino operations within Integrated Resorts (IRs). These licenses are highly limited and strictly regulated. Initially, a maximum of three IR areas can be approved, each with one casino operator. As of now, only one casino business license (Osaka IR) has been granted.
Public Gambling Activities: Other legal gambling activities, such as horse racing, bicycle racing, powerboat racing, motorcycle racing, lotteries, and pachinko, are exempt from the general gambling prohibition. However, these are operated exclusively by government-related entities or local authorities and are not subject to a commercial licensing system for private operators.
Casino Business License Application Process
Eligibility: Only companies incorporated under the Japanese Companies Act (typically a kabushiki kaisha or godo kaisha) are eligible to apply. There are no residency or nationality requirements for ownership, but all shareholders, officers, directors, and persons of significant influence (5% or more ownership) are subject to rigorous background checks.
Application Steps:
The local government must first obtain approval for its IR Area Implementation Plan from the national government.
The approved IR operator then submits a casino business license application to the Japan Casino Regulatory Commission (JCRC).
The JCRC conducts a thorough examination, including:
Background checks for criminal and organized crime links
Assessment of financial soundness and business viability
Evaluation of social credibility and integrity of the applicant and all key personnel
Review of anti-money laundering and responsible gambling measures
Applicants must submit detailed documentation as required by the JCRC.
The examination period is not publicly specified and may vary depending on the complexity of the application.
Duration, Renewal, and Revocation
License Duration: The casino business license is valid for three years.
Renewal: Licenses must be renewed every three years. Renewal is contingent on continued compliance with all regulatory requirements and maintenance of integrity and suitability. The IR Area Implementation Plan itself is authorized for ten years, with renewal required every five years and subject to approval by the local municipal council.
Revocation: The license may be revoked if the IR Area Implementation Plan is revoked, if the casino facility provider’s license is revoked, or if the operator fails to maintain compliance or integrity.
Licensing Costs and Financial Requirements
Application and Examination Fees: Applicants must pay all costs associated with the examination process. The JCRC calculates and notifies the estimated examination cost, which the applicant must pay by a designated date. If actual costs exceed the estimate, the applicant must pay the shortfall. Failure to pay results in dismissal of the application.
Estimated Costs: While specific amounts are not always published, industry estimates suggest initial licensing fees and related costs can range from approximately $20,000 to $120,000, with additional recurring fees for maintaining the license (e.g., around $25,000 per renewal cycle). The actual costs depend on the scope and complexity of the background checks and regulatory examinations.
Financial Soundness: Applicants must demonstrate sufficient net worth and financial stability to operate a casino business, including detailed business plans and financial projections.
Key Requirements for Obtaining and Maintaining a Casino License
Strict exclusion of organized crime: Any ties to criminal organizations result in immediate disqualification.
Comprehensive background checks for all major shareholders, officers, directors, and related parties.
Robust anti-money laundering (AML) and know-your-customer (KYC) procedures.
Effective measures for responsible gambling and prevention of gambling addiction.
Periodic reporting to the JCRC, including lists of shareholders and voting rights holders.
Continued compliance with all operational, financial, and social responsibility standards set by the JCRC and relevant local authorities.
Summary Table: Casino Business License (IR) in Japan
Aspect
Details
Type
Casino Business License (IR)
Eligible Entities
Japanese-incorporated companies (KK or GK)
Application Authority
Japan Casino Regulatory Commission (JCRC)
License Duration
3 years (renewable)
Renewal Conditions
Compliance review, municipal council approval for IR plan
Application Fees
Estimated and actual examination costs (variable, typically tens of thousands USD)
Loss of IR plan approval, non-compliance, criminal links
Other forms of gambling (public sports betting, lottery, pachinko) are operated by public or quasi-public entities and do not involve a commercial licensing system for private operators.
Gambling Tax
Tax Rates for Different Types of Gambling Operations
Casino Operators (Integrated Resorts - IRs):
Casino gaming operations within licensed Integrated Resorts are taxed on Gross Gaming Revenue (GGR).
The standard tax rate is 30% of GGR.
An additional 15% of GGR is levied on the portion of GGR generated from Japanese residents, making the effective rate for domestic play 45% of GGR.
GGR is defined as total wagers minus total payouts to players.
These are not taxed in the same way as private operators. Instead, a significant portion of turnover (betting handle) is allocated to government funds, local governments, and public-interest projects.
The effective "tax" or government take varies by game but typically ranges from 20% to 30% of turnover after prize payouts and operational costs.
Lotteries:
Lotteries are operated by local governments or government-related entities. The proceeds after prize payouts and operational expenses are allocated to public funds; there is no separate operator tax.
Pachinko:
Pachinko parlors are not taxed as gambling operators but are subject to standard corporate and consumption taxes.
Type
Tax Basis
Tax Rate
Notes
Casino (IR)
Gross Gaming Revenue
30% (foreigners), 45% (Japanese residents)
Additional 15% on domestic GGR
Public Gambling (Racing, etc.)
Turnover (after payouts)
20–30% (effective government take)
Proceeds to public funds
Lottery
Turnover (after payouts)
N/A (public allocation)
Operated by government
Pachinko
Corporate/consumption tax
Standard rates
Not taxed as gambling
Tax Reporting and Payment Requirements
Casino operators must calculate and report GGR monthly to the Japan Casino Regulatory Commission.
Tax payments are generally due on a monthly basis, with detailed breakdowns required between revenue from Japanese residents and foreign visitors.
Operators must maintain detailed accounting records and submit them for periodic audits by the regulatory authority.
Failure to report or pay taxes accurately can result in administrative penalties, fines, or revocation of the casino license.
Public gambling operators (racing, lottery) remit proceeds directly to government-designated accounts according to statutory formulas.
Tax Incentives, Exemptions, and Special Provisions
There are no significant tax incentives or exemptions for casino operators under the current regime.
Casino operators are not subject to additional annual license fees beyond the gaming tax.
Public gambling (racing, lottery) is exempt from corporate tax on gambling proceeds, as all net proceeds are allocated for public benefit.
Pachinko parlors, while not taxed as gambling operators, are subject to ordinary business taxation and do not receive special gambling-related tax incentives.
Prohibited Individuals
Age Restrictions and Identification Requirements
The minimum legal age for participation in all permitted gambling activities in Japan is 20 years old, which aligns with the legal age of adulthood in the country.
Operators of authorized gambling activities, such as public sports betting, lotteries, and pachinko, are required to verify the age of participants. Identification checks are standard practice to prevent underage gambling, particularly at physical venues.
For any future casinos within Integrated Resorts (IRs), strict identification and age verification procedures will be mandatory, including the use of government-issued photo ID to ensure compliance with age restrictions.
Prohibited Activities and Game Restrictions
Most forms of gambling are strictly prohibited under the Japanese Penal Code, with only a few exceptions allowed by special laws.
Prohibited activities include:
Private or unlicensed casino games (such as poker, roulette, blackjack, etc.)
Online casino gambling, regardless of whether the operator is based overseas or domestically
Unlicensed betting or wagering on sports or events beyond the permitted public races
Operation of gambling establishments without official authorization
The only legally permitted gambling activities are:
Pachinko and pachi-slot machines (regulated as amusement, not gambling, but subject to specific restrictions)
Future land-based casinos, but only within licensed Integrated Resorts (IRs) and under strict regulatory oversight
All other forms of gambling, including private games and unauthorized online gambling, are criminal offenses subject to fines and imprisonment.
Advertising and Marketing Limitations
Advertising of unauthorized or illegal gambling activities, including online casinos, is strictly prohibited.
Promotion of legal gambling activities (such as public sports betting, lotteries, and pachinko) is subject to strict content, placement, and audience restrictions to prevent targeting minors and vulnerable individuals.
Operators must avoid misleading or aggressive marketing tactics and are required to include responsible gambling messages in their advertising materials.
Any advertising for future casino operations within IRs will be tightly regulated, with restrictions on the scope, medium, and content to protect public order and prevent excessive gambling.
Responsible Gambling Requirements and Player Protection Measures
Operators of permitted gambling activities must implement measures to prevent problem gambling, including:
Providing clear information about the risks of gambling and avenues for seeking help
Offering self-exclusion programs and support for individuals who wish to restrict their own gambling
Training staff to identify and assist problem gamblers
Monitoring player behavior for signs of excessive or harmful gambling
For casinos within Integrated Resorts (once operational), there will be mandatory responsible gambling programs, including:
Entry restrictions for individuals identified as problem gamblers or those who have self-excluded
Limits on casino visits and spending for residents of Japan
On-site counseling and support services for gambling addiction
Public awareness campaigns are periodically conducted to educate citizens about the legal status of gambling and the risks associated with illegal or excessive gambling.
Geographic and Location Restrictions
Physical casinos are only permitted within government-approved Integrated Resort (IR) areas. As of now, only Osaka Prefecture has a confirmed IR project, with others under consideration.
Each IR area may have only one casino, and the casino’s floor space is limited to a maximum of 3% of the total IR area.
All other casino-style gambling venues outside licensed IRs are strictly prohibited.
Pachinko parlors and other permitted gambling venues must operate in compliance with local zoning and distance requirements, including restrictions on proximity to schools and other sensitive locations.
Online gambling operations are entirely prohibited for operators and players within Japan, regardless of the location of the website or server.
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Timeline
Year/Date
Event
13th Century
Gambling is banned in Japan; severe penalties including execution are imposed for violations.
Early 1700s
Certain forms of gambling are legalized, allowing limited betting on specific activities.
April 24, 1907
The Penal Code of Japan is enacted, broadly prohibiting gambling except for certain exemptions such as “momentary amusement.”
1948
Public Sports Betting Laws are introduced, legalizing parimutuel betting on horse racing, bicycle racing, motorboat racing, and motorcycle racing under government oversight.
Post-World War II (1940s)
Pachinko emerges and becomes widespread; it is classified as a game of amusement rather than gambling, thus circumventing gambling bans.
1964
Public Lottery Law is enacted, legalizing government-run lotteries in Japan.
2016
The Integrated Resort Promotion Act is passed, initiating the process to legalize casino gambling within integrated resorts (IRs).
July 27, 2018
The Act on Development of Specified Integrated Resort Districts is enacted, officially legalizing licensed casino gambling in designated integrated resorts.
2020
The Casino Administration Committee is established as the national regulatory authority to oversee integrated resorts and casino operations.
2023
Japan enacts the Basic Act on Countermeasures for Gambling Addiction, introducing a national framework to address gambling-related harm, including measures covering pachinko and other legal gambling activities.
Requirements
Software Certification and Technical Standards Requirements
Casino gaming machines and systems must comply with strict technical standards set by the Japan Casino Regulatory Commission (JCRC). This includes requirements for randomness, fairness, and security of all gaming equipment and software used within the casino areas of Integrated Resorts (IRs).
All gaming equipment, including electronic gaming machines, must undergo independent testing and certification by approved testing laboratories to verify compliance with regulatory standards before deployment.
Any updates or modifications to certified gaming software or hardware require re-certification and approval from the JCRC prior to implementation.
Operators must implement robust monitoring and control systems to ensure ongoing compliance with technical standards, including real-time monitoring of gaming activities and system integrity.
Data Protection, Privacy Measures, and Server Location Requirements
Operators are required to implement comprehensive data protection measures in line with Japan’s Act on the Protection of Personal Information (APPI), ensuring the confidentiality, integrity, and availability of customer and operational data.
All personal and sensitive data collected from customers must be securely stored, with access strictly controlled and logged.
Data servers hosting gaming and customer information must be located within Japan to ensure regulatory oversight and facilitate inspections by authorities.
Operators must have protocols for timely detection, reporting, and mitigation of data breaches, including notification to affected individuals and the JCRC as required.
Anti-Money Laundering (AML) and Know Your Customer (KYC) Procedures
Casino operators must establish and maintain robust AML programs in accordance with Japanese law and JCRC guidelines. This includes comprehensive risk assessment and internal controls to detect and prevent money laundering and terrorist financing.
Mandatory KYC procedures require the verification of customer identity before allowing participation in gaming activities. This includes collecting and validating government-issued identification and, where necessary, additional documentation to confirm address and source of funds.
Operators must implement transaction monitoring systems to detect suspicious activities, with protocols for escalating, investigating, and reporting such activities to the relevant authorities without delay.
Regular staff training on AML and KYC obligations is required, and operators must maintain detailed records of all AML-related activities and reports.
Financial Reporting, Auditing Standards, and Record-Keeping Requirements
Operators are required to submit annual financial statements and quarterly operational reports to the JCRC and the Minister of Land, Infrastructure, Transport and Tourism.
Financial statements must be prepared in accordance with Japanese Generally Accepted Accounting Principles (J-GAAP) or International Financial Reporting Standards (IFRS), as specified by the authorities.
Operators must engage independent external auditors to conduct regular audits of financial and operational records, with audit results submitted to the regulatory authorities.
Detailed records of all gaming transactions, customer interactions, and compliance activities must be maintained for a minimum period specified by the JCRC, and must be readily accessible for inspection.
Technical Implementation Requirements for Responsible Gambling Tools
Operators must implement technical systems to enforce entry restrictions for Japanese nationals, including limits on the number of casino visits per week and per month, as required by law.
Self-exclusion and third-party exclusion mechanisms must be available, allowing individuals or their families to request restrictions on casino access. These systems must be integrated into access control and surveillance systems to ensure effective enforcement.
Responsible gambling information and assistance must be prominently displayed on gaming devices and throughout casino premises, with multilingual support where appropriate.
Operators are required to provide real-time monitoring and intervention systems to identify and assist individuals exhibiting signs of problem gambling, including automated alerts and staff intervention protocols.
e-Gov Japan (eLaws) - Official government portal for Japanese laws, including the Penal Code, IR Promotion Law, and IR Implementation Law (Japanese language)
Japan Casino Regulatory Commission (JCRC):
Shiroyama Trust Tower, 12th and 13th floors, 4-3-1 Toranomon, Minato-ku, Tokyo
Phone: 03-6453-0201
National Police Agency (NPA):
2-1-2 Kasumigaseki, Chiyoda-ku, Tokyo 100-8974, Japan
Phone: +81 3-3581-0141
English Information
Consumer Affairs Agency (CAA):
Central Government Building No. 4, 1-6-1 Kasumigaseki, Chiyoda-ku, Tokyo 100-8958, Japan
Phone: +81 3-3507-8800
English Information
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Gambling regulations are subject to change. The information provided on this page was accurate at the time of publication, but may not reflect the current regulatory landscape. Always consult official sources for the most up-to-date information before making any gambling-related decisions.
