G3 MARKET UPDATE - JAPAN ONLINE GAMING
Fully legal online gambling is operated by a number of governmental entities which run the lottery, a football lottery, horse racing, boat racing, bicycle racing, local horse racing and motor-cycle racing.
Although Japanese players could arguably be breaking the law by playing online players in Japan are not hindered from betting online. However in most cases they need to use non credit card payments such as Pay pal or E- wallets such as Neteller to play.
Japan Online Gambling
While players can gamble via offshore sites without fear of prosecution the government has on occasion taken steps against online gambling. But these cases are rare and there have only been a few cases where online operators located in Japan have been arrested and handed down suspended sentences.
However the government presented its view concerning online gambling in 2013, stating that gambling via offshore sites from Japan is illegal. In 2016 a number of players playing in Japan via an offshore site in the UK (Smart Live Casino) were convicted of illegal gambling. Te site was in Japanese and the dealer was Japanese casino meaning that the service was targeted specifically at Japanese people. No action was taken against Smart Live Casino and those players accused of breaking the law received extremely light sentences.
OUTLOOK
Gambling is generally prohibited in Japan unless special dispensation has been
granted under law. The Penal Code applies to both land-based gambling and online gambling but there is no statute that specifically regulates online gambling. While there is some discussion about
whether or not online gambling is illegal, strictly speaking gambling citizens placing bets via offshore sites while in Japan are acting in contravention to the Penal Code. However online gambling remains a grey area and the government very rarely intervenes.
P80 NEWSWIRE / INTERACTIVE / MARKET DATA
A very large number of offshore sites are already targeting the market via Japanese language versions of their sites. Te online market will continue to be unregulated in the short term as there seems little impetus for now to address online gambling laws. Offshore operator will continue to offer their most popular and well known games to Japanese players. However targeting the market exclusively only to Japanese players could well lead to government intervention so operators need to be wary. All the same Japanese customer service and availability during Japanese non working hours is advantageous and bonuses in local currency are being offered by a small number of companies. Operators offering a special focus on sports popular in Japan such as baseball and the top division of the Japan Professional Football League would stand out as well as well there is little emphasis on Japanese sports.
Casino style gambling will become increasingly popular once the resort casinos are up and running. However the Japanese government will not begin considering proposals for integrated resorts from municipalities and prefectures until 2021. In addition advertising restrictions will mean that advertisements for casino style gambling will not be permitted on TV or in the media.
OPERATORS IN THE JAPANESE MARKET
A very large number of offshore operators target the market with a great many sites offering their services in Japanese. A number are optimised for the Japanese market, offering manga style themes while a very small number accept local currency and offer bonuses in Yen. Some (but very few) offer online customer support in
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