Sports betting and the law in Japan.

• Author: Yamazaki, Takuya
• Position: ARTICLES - Report

The current situation concerning the introduction of sports gambling (soccer betting) into Japan

With sports betting in Japan, the situation at present is that "Toto" (soccer betting) is the only form of gambling being promoted.

Soccer betting, the sole form of sports gambling in this country, commenced nationwide from the start of the 2001 J-League season, and is now in its 8th consecutive year of operation. Participants (gamblers) get the chance to personally predict the results of the J-League games. Also with tickets priced from just 100 yen per bet, it is both reasonably priced and convenient. Furthermore, the media coverage of the recently introduced 1 billion yen jackpot has resulted in ticket sales successfully passing the 60 billion yen mark in the jackpot's inaugural year.

However, after witnessing the successful start in soccer betting ticket sales, revenues since 2002 have been declining year upon year. In fact sales in 2006 were just 130 billion yen, falling to a quarter of the level of that reached in the inaugural year1. There has been much negative opinion expressed as to whether soccer betting should continue. Since September 2006, a new way to bet on soccer game results, called "Big" was established. This is where a computer predicts all the results randomly, and if the better gets a win and carry over (this is the situation when there is no better who correctly predicted all results, the prize money is then carried over for the next round of betting), the highest prize money that can be won is 6 billion yen.

Since its launch "Big" has triggered new interest in Japanese soccer betting. In 2007 Big posted 50 billion yen in sales for 2007, and then went on to make history in 2008 (December's sale total is still to be counted) by achieving a figure of 90 billion by the end of November.

The objective of this type of Japanese soccer betting is to assist in the promotion of sport. However, on the other hand there have been criminal laws introduced to regulate this area, in particular laws intended for the public management of gambling. Basically, the objective of these laws is not to divert the existing funds devoted to the promotion of sport, but to ensure that a new system can be brought forward to guarantee that such funds are managed appropriately. To raise capital for the above mentioned system special laws were brought in to authorise public gambling, as gambling in general is prohibited by the Japanese criminal law. Another reason behind the introduction of Toto was to provide funding for projects which the government itself could not supply.

Below, for the purpose of presenting a more detailed understanding of the Japanese soccer betting system, there is an analysis of how the criminal law regulates gambling, or more specifically, the sale of betting tickets. There is also an examination on how gambling, particularly the system for betting ticket sales, is approved by special laws.

The Law System Governing Betting and the Lottery in Japan

Gambling, that is to say, the wagering of one's assets, is akin to relying on the result of extrinsic circumstances2. Furthermore, the actual act of gambling is, in essence, putting other peoples' assets at risk. These ideas pose a threat to the custom of which the prosperous Japanese economy is based on, namely that of working hard to maintain a good livelihood. The criminal law system in Japan recognizes these concepts and that incidental to gambling comes the risk of theft and corruption in society. Therefore, strict regulations have been laid down to prevent and defend against such criminal activity3.

Private gambling and lotteries in Japan are basically prohibited by chapter 2 section 23 of the Fundamental Japanese Criminal Law. More specifically: article 185 covers gambling; article 186 covers habitual gambling, the creation of gambling groups, colluding to profit from gambling and gambling locations; and article 187 covers the sale of lottery tickets.

Articles 185, 186 and 187 are now covered below:

Firstly, article 185--anyone caught gambling can be sentenced to either a small fine or a penalty of up to 500,000 yen. However, this law is not only limited to people who gamble things for pleasure, it also regulates situations where 2 or more people together try to profit illicitly from influencing the outcome of a betting game. This law covers all types of items which are gambled (please note however, that items such as food, drink and tobacco, which are wagered for insignificant amounts are not criminalised under the Fundamental Japanese Criminal Law).

Secondly, article 186. Provision (1)--habitual gamblers, if caught can be imprisoned for up to 3 years. Provision (2)--people who run gambling houses, form groups to plot gambling tactics or start betting rings, if caught, can be sentenced to between 3 months and 5 years in prison. Paragraph 1 of article 186 covers the gambling situations stipulated in article 185, but those of a more serious nature. Paragraph 2 of article 186 covers situations where people, although not gambling personally, open gambling houses or become so called "bookies".

Finally, article 187. Provision (1)--people, who sell lottery tickets illicitly, if caught, can be sentenced to a maximum of two years in prison and/or a penalty of up to 1,500,000 yen. Provision (2)--people, who act as a broker (even they do not gain commissions) from illicit lottery ticket sales, if caught, can subject to a maximum of 12 months in jail and/or a fine of up to 1 million yen. Provision (3)--this covers situations where people who have not committed offences under provisions (1) and (2) but who have traded lottery tickets, can be given a small financial penalty and/or a fine of up to 200,000 yen. Paragraph 1 of article 187 aims to prevent situations where people have attempted to influence the outcome of lotteries through issuing manipulated tickets, selling tickets or even actually drawing them in a lottery. Paragraph 2 of article 187 aims to prevent cases where, although not selling or purchasing tickets directly, people act as brokers in the illicit trading of tickets. Paragraph 3 of article 187 covers situations where people illicitly transfer or assign lottery tickets.

As considered above, in Japan every private act of gambling or sale of lottery tickets is strictly prohibited by the criminal law. However, after the Second World War, publicly run gambling was allowed, under the auspices of the Japanese government, and is recognized by special laws for the promotion of regional economies, industry and manufacturing (4). The types of public run gambling authorized are as follows: Horseracing; Bike Racing (now referred to as Keirin); Motorbike Racing; Motorboat Racing; the Lottery; Loto; and Scratch Cards.

In the next few chapters, there will be an analysis of the various types of public run gambling. This analysis will cover the legal regulations, criminal sanctions, management, use of proceeds, the methods of betting and the objectives behind public run gambling.

The Special Laws which Govern Public Gambling Horse Racing

The law governing horse racing in Japan is the Horse Racing Act 1948 (now referred to as the HRA) (Showa Period 23rd year, law number 158).

As stipulated in horse racing law, the institutions charged with controlling horse racing matters are the Japan Racing Association (now referred to as the JRA) and the Prefectural Governments of Japan (now referred to as the Prefectural Governments) (article 1 of the HRA). However, the Minister of Public Management, Home Affairs, Posts and Telecommunications (now referred to as the Home Affairs Minister) and the Minister of Agriculture, Forestry and Fisheries (now referred to as the Agriculture Minister), through consultation, are responsible for administering special fiscal matters for particular economic zones, including municipalities (now referred to as the Municipalities) (article 1 paragraph 2 of the HRA).

The JRA has responsibility for enacting national horse racing matters The National Racing Association (now referred to as the NRA) is the body charged with administering horse racing matters on a regional level for the Prefectural Governments and the Municipalities (article 1 paragraph 5 of the HRA).

The horse racing regulatory authority for both the JRA and NAR is the Ministry of Agriculture, Forestry and Fisheries of Japan (now referred to as the MAFF) (article 25 of the HRA). However the MAFF has granted the responsibility for ensuring that horse racing meetings are properly regulated [including: the registration of horse owners (article 13 of the HRA), horses (article 14 of the HRA), and the licensing of trainers and jockeys, these requirements are stipulated in a MAFF Supplementary Order], on a national level to the JRA and on a regional level to the NAR (article 22 of the HRA). Please note that the NRA was also established to ensure that regional horse racing matters are administered smoothly and fairly, alongside promoting improvements in horse breeding and livestock maintenance (article 23 paragraph 10 of the HRA) (5).

Regarding the sale of horse racing tickets for the JRA, the only parties permitted to do this are the JRA, and also Prefectural Governments and private individuals (article 5 paragraph 1 of the HRA and article 3 paragraph 1 of the HRA [Supplementary Provision]) which are specifically entrusted by the JRA (article 3 paragraph 2 of...