Japanese government quashes reports of sports betting legalisation
Economy minister and chief cabinet secretary both dismiss claims draft bill revealed in potential major turning point for Asian country
The Japanese government has poured cold water on reports the country is set to lift a ban on sports betting.
Reports from sections of the Japanese press claimed the Ministry of Economy, Trade and Industry (METI) have revealed a draft bill for the potential greenlighting of sports betting.
The draft bill included proposals for online sports betting, as well as key factors in its approval, including redirecting funds to sports club and boosting advertising revenue.
However, the chief minister for METI, Koichi Hagiuda, insisted that no such proposal is in place and that plans to hold discussions later in the year remain on track.
In a press conference, Hagiuda said: “There is no fact that the Ministry of Economy, Trade and Industry is taking the lead and wanting to realise it [legalisation of sports betting] immediately.”
Instead, METI and the Japan Sports Agency will convene at the Sports Future Development Conference in July to discuss the merit of lifting the ban on sports betting.
Hagiuda continued: “We are planning to resume discussions in light of the changes in the global sports industry structure due to [Covid-19] and digitalisation, but we are considering the specific start time and selection of the agenda.”
Hirokazu Matsuno, chief cabinet secretary, reaffirmed the government’s stance and confirmed plans to legalise sports betting were premature.
He said: “The Ministry of Economy, Trade and Industry is holding a study group on sports, but there are no plans to present a proposal to lift the ban on sports betting. No specific consideration has been made and comments are withheld.”
Japan is one of the largest online grey markets in the world, with legal gambling options limited to a few options, including horseracing.
The market is dominated by the quasi-gambling pachinko palours, while plans to build a handful of land-based casino resorts has rumbled on for years.
Japan has proved a fertile trading ground for some online operators, most notably Gamesys, which is now part of US casino group Bally’s.
The operator noted that in 2020, revenue derived from Asia (mostly Japan) jumped to 30% from 22% of total group revenue in 2019.
Additionally, Asia returned £218.3m in revenue for the firm in 2020.
At the time, Gamesys said: “Our operation in Japan has gone from strength to strength during 2020. Not only does it represent the fastest major growing market in percentage terms across the group, it has also delivered the most growth in absolute terms.”
Elsewhere, affiliates such as Catena Media have also had success in Japan, with the Malta-headquartered firm reporting a doubling of revenue from Japan’s online casino market in 2021.