Gambling in Japan: The Dilemma of Opportunity vs. Risk
Osaka is all set to build Japan's first casino
The year 2030 is set to transform Japan’s relationship with gambling. Osaka Prefecture and Osaka City plan to open a new integrated resort (IR) that will include a casino on the artificial island of Yumeshima. Sharing the same site designated for the Osaka-Kansai Expo, this will be Japan's first casino. Approved in 2023 after years of heated debate, the plan aims to propel Osaka into a global economic and tourism hub.
Japan’s stance on gambling has been paradoxical. While gambling is largely prohibited, exceptions such as horse racing, boat racing, and lotteries, thrive under the watchful eye of the government. Pachinko, a type of gambling game where players receive balls as winnings that they then exchange for various goods of value, is also permitted. They can be entered easily and are found in almost all major towns and cities.
In contrast, online gambling is illegal, even on foreign sites. Those caught operating online casinos face imprisonment for three months to five years, and customers may also be penalized, facing fines of up to 500,000 JPY. People might unwittingly participate in online gambling and find themselves in legal trouble. There has also been planned criminal activity; recently, three individuals were arrested for facilitating illegal online gambling. They allegedly operated a payment service that converted cryptocurrency for customers gambling on overseas online casinos, targeting Japan as a growth market, particularly for online casinos.
According to a survey by the Ministry of Health, Labor and Welfare, an estimated 3.2 million people in Japan suffer from gambling addiction. Following the Coronavirus pandemic, the use of online gambling increased, with young people particularly affected. Some became addicted to online casinos, incurred debt, and were forced to take on dubious part-time jobs.
Promotions in this arena operate within a gray area. A seemingly innocuous advertisement for the free version of the online casino site Vera John featured the captain of Japan’s national football team, Maya Yoshida, as its spokesperson. The ad was frequently broadcast during the Qatar Asian Cup, enticing young people and soccer fans to try the gaming site, promoting the message that users could enjoy casino-style games free of charge. However, this was essentially a way to attract customers to the actual site.
Gambling laws vary widely around the world. It is legal in places like Macau, several European countries, and many U.S. states. A 2023 study by the American Gaming Association suggested that the casino gambling industry in the United States generates $329 billion annually in economic activity. However, gambling also results in significant financial losses. A report published in 2017 by H2 Gambling Capital, a data consulting firm in the gaming industry, listed the top five countries with the highest gambling losses: the United States ($116.9 billion), China ($62.4 billion), Japan ($24.1 billion), Italy ($19 billion), and Australia ($18.3 billion). On a per capita basis, Australia reported the highest average losses at $1,052, followed by Singapore at $674 and Ireland at $501. Australia was also the first country to deregulate its gambling industry in the 1980s, allowing licensed pubs and clubs to operate slot machines.
The Osaka government positions its casino plan as a key driver for economic growth. Although the IR will be managed by private firms, the project is promoted by various stakeholders, including the Osaka government. Inspired by success stories like Las Vegas and Macau, the city hopes to attract tourists and investors while generating jobs and tax revenue. The plan also mentions measures to combat gambling addiction but critics question their adequacy.
Debates surrounding the gambling industry present a multifaceted range of pros and cons. Supporters emphasize economic benefits such as revenue generation, tourism, and entertainment, while critics focus on social concerns like addiction, decreased productivity, and financial difficulties. The discourse surrounding gambling is intricate, but it is evident that gambling has a long history in human culture and is unlikely to disappear anytime soon. How Japan navigates this balance remains to be seen.
Selected Sources
https://www.nhk.jp/p/gendai/ts/R7Y6NGLJ6G/blog/bl/pkEldmVQ6R/bp/pnAJ5jkxpq/
https://apnews.com/article/casinos-gambling-economy-taxes-sports-betting-slots-928163c8820213aa3d15f2358f2d09d9
https://www.reuters.com/article/opinion/-idUSKBN2QV0E5/
https://www.pref.osaka.lg.jp/o080010/irs-kikaku/gaiyou/index.html
https://japannews.yomiuri.co.jp/society/general-news/20240820-205947/
https://www3.nhk.or.jp/lnews/nagasaki/20231227/5030019772.html