State-run online casino, legalize long-shot gambling! World gambling money as Japan's revenue

While online casino users are being cracked down on, public gambling is legal and pachinko is tolerated. What is the contradiction here? Overseas, casinos and sports betting are state finances. Can Japan not change the idea that “gambling = bad”?

Issues in Japan's Gambling Regulations

Recently, news about online casino users being seized in Japan has become a topic of conversation. However, many people may notice a major contradiction: within Japan, gambling such as horse racing, boat racing, bicycle racing, and pachinko is legally operated, yet online casinos are stringently crackdown on.

Publicly Operated Gambling and Tolerated Gambling

Japan's gambling regulations are based on the Gambling Prohibition Act (Penal Code Articles 185 and 186), but publicly operated gambling (horse racing, bicycle racing, boat racing, auto racing) is an exception, and pachinko is tolerated. Meanwhile, online casinos and sports betting lack clear regulatory standards and are treated as being in a “gray zone.”

The Inconsistency of Gambling Regulations

This contradiction stems from a policy where gambling managed by the state is legal, while private or overseas gambling is illegal. In other words, the Japanese government is not banning gambling itself, but trying to eliminate gambling that is not under its control. However, this does not deter the public from gambling; instead it drives funds to overseas gambling markets.

Sports Betting Is Legal Worldwide

On the other hand, attitudes toward gambling differ greatly around the world. In many countries, gambling is not prohibited but is properly managed and used as national tax revenue.

Sports Betting

In particular, sports betting is a rapidly legalized area. For example, in the United States, the Supreme Court legalized sports betting in 2018 and many states introduced licensing systems. Professional leagues like the NFL and NBA are involved and growing. In the United Kingdom, bookmakers (bet365, William Hill, etc.) operate legally under government supervision and serve as a source of tax revenue.

Public Enterprise as Well

In EU countries such as France, Germany, and Spain, operations run under government licensing systems, and in Singapore and Hong Kong government-managed sports betting is legalized, with a portion of revenue allocated to social welfare and sports promotion.

In these countries, the policy is not to ban gambling but to ensure proper management and taxation to secure profits, resulting in substantial tax revenue.

Japan Should Promote Sports Betting as Well

Japan faces fiscal difficulties due to a declining birthrate and an aging population and needs to find new revenue sources. Therefore, shouldn’t it align with global trends by legalizing sports betting and creating a system to attract funds from both domestic and international sources?

This could boost revenues for J-League and professional baseball. If sports betting is legalized, domestic sports leagues like J-League and professional baseball could directly benefit. Like the Premier League (UK), a collaboration between sports and the betting industry could lead to league development.

Sports Revenue and Gambling Tax

Taxation on gambling could also improve finances. Like horse racing and pachinko, sports betting could be taxed to increase national revenue. As in Singapore, part of the profits could be returned to social welfare and sports promotion.

Enforcement against illegal gambling could also be strengthened. Currently, many Japanese people use overseas bookmakers, but cracking down on illegal gambling is difficult. If Japan creates a legal sports betting market, it will be easier to eliminate and regulate illegal operators.

Japanese Sports Going Global

Moreover, it would enable exploration of international markets. Japanese sports enjoy global popularity, and there are many overseas fans. If we create “J-League Official Sports Betting” or “Japan Pro Baseball Official Bookmaker” and “Sumo Wrestling Officially Certified Bookmakers,” it could attract investment and bets from abroad.

Traditional Japanese Gambling: Nagahando

Inbound tourism still holds potential. Japan has a traditional gambling culture called Nagahando, and if incorporated into casinos, it could create a unique Japanese gambling venue. It could be a distinctive casino that stands out worldwide.

Using online live broadcasts could attract overseas viewers who want to experience it in Japan. Dressed in traditional attire and performing Nagahando on tatami mats could create a new form of gambling that includes cultural elements unique to Japan and become a major attraction for tourism.

Conclusion: Gambling is Not Evil

In Japan, there is a saying that symbolizes “bad people” who drink, gamble, and buy, and the image of gambling as “bad” is strong, but this is just the influence of past culture and regulation. In many countries, gambling is enjoyed as “entertainment” and is properly managed under government oversight.

Instead, Japan should utilize this system and build a mechanism to attract money from around the world. Then it could attract funds not only from the domestic market but also from global sports fans and investors, becoming a new growth area for the Japanese economy.

The time has come to rethink not only crackdowns on online casinos but also the fundamental “attitudes toward gambling.” The current stance of “keep it banned and leave it” merely channels funds overseas and offers little advantage to Japan.

Use Public Gambling as a Revenue Source

Japan should align with global standards, manage gambling properly, and build a system that generates profits. Casinos exist around the world and are a major source of tourist income, so it is clear that Japan cannot ignore this trend from an economic perspective. Especially by leveraging inbound demand, casino-driven tourism revenue could increase and invigorate the economy.

Rather than simplistic ideas like raising taxes for budget shortfalls, Japan should consider how to attract money from overseas. If the state leads in revenue generation, domestic burden can be reduced while fiscal health improves. Including the legalization of sports betting and exploring new revenue models to encourage funds from international markets is truly a necessary policy.