How to start an online casino in Japan in 2026: gambling industry overview

Japan, an East Asian economic powerhouse with a population of almost 125 million, is well-known for its crowded cities, imperial palaces, national parks, temples, and shrines — but also for its citizens’ well-documented love of gaming and gambling. It’s no wonder that so many operators want to know how to start an online business in Japan.

Read to the end to learn why so many online casino operators view Japan as a country well worth investing in, despite the country’s strict regulations.

Overview of the gambling industry in Japan

Japan has one of the strongest economies in the world and its people are reputed for their love of gambling and betting, which attracts many operators to Japan’s online gambling market.

Just how big is the Japanese gambling market?

According to IMARC Group, a market research firm, the online gambling market was valued at approximately $4.5 billion in 2025, and is expected to reach $9.44 billion by 2030. These numbers include both online casino and online sports betting.

For a quick overview of Japan’s gambling industry and the local love of gambling, look at the country’s famous (and beloved) pachinko machines. The game is similar to pinball and runs more slowly than slots, but the winnings are items such as chocolate or cigarettes (so, technically, it's not gambling). The Japanese pachinko industry generates revenues of about $200 billion a year.

Pachinko lets Japanese players scratch a gambling itch without breaking the law: players often receive prizes instead of money, but the prizes can be converted into cash at kiosks around the corner from the pachinko parlor.

If we talk about Japan’s gambling trends 2025, apart from pachinko, Japan’s gambling market is very limited. The only legal options are lotteries and betting on horse, bike, motorcycle and powerboat races, all organized by the national monopoly. Land-based casinos are currently prohibited, but legislation is expected to change in the coming years to allow for casinos in integrated resorts.

Because of the limited legal opportunities for gambling in Japan, there remains a huge unsatisfied demand. As is often the case, illicit gambling rings abound, but Japan stands out in terms of scale. The online gray market is huge, with affiliates directing waves of players to offshore platforms that welcome tens of millions of visitors monthly. Japanese players spend about $40 billion each year on foreign sportsbooks, most often betting on soccer and baseball.

Japan online casino license and legislation

Are casinos legal in Japan? In 2016, Japan passed a bill that provided for the legalization of gambling in the country. This decision was made with the intention of attracting foreign players, thereby replenishing the country's budget. However, at the moment, there is no gambling license in Japan that operators can apply for.

According to the plan, there will be different rules for foreigners and residents of Japan. Residents will have to pay about 6,000 yen to enter a casino, and will be allowed a maximum of three visits to the gaming centers per week. In addition, a profit tax will be charged on gambling establishments in the amount of 15% of the total income. Slot machines will be able to occupy no more than 3% of the total area of the building.

Crucially, casinos will only be allowed as part of integrated resort (IR) facilities, which will feature casinos, hotels, and convention centers. Work on the first IR facility in Osaka has already begun.

At the moment, participation in illegal gambling, as well as the opening of land-based and online casinos, are criminal acts in Japan. Organizers of illicit gambling can be imprisoned for five years, and players can be jailed for up to three years.

While the number of individuals accused of playing on unlicensed casinos is still small, it’s growing; a record 279 individuals ran into trouble with the law in 2024, up from 107 the previous year, according to local news sources.

Japan players’ game preferences

For a successful casino startup, it is essential to adapt the content to local preferences.

Pachinko machines provide a template of the UX that Japanese players expect. Pachinko, integral to Japanese culture, can be described as a cross between pinball and slots. Pachinko parlors are famous for their atmosphere; visitors are greeted by bright lights and striking sound effects, such as jingling bells and whistles.

Online casino users expect a similar environment. While this level of audiovisual simulation is overwhelming for Western players, Japanese players find that the kaleidoscope of lights and symphony of sounds help them achieve a zen-like state of total focus.

Another cultural feature commonly seen on Japanese-oriented platforms is manga. Characters in the style of popular animation appear both as platform mascots and as characters in the plot of the games themselves.

Finding proven suppliers of quality games is a time-consuming and difficult process. After conducting a full and in-depth study of the market, operators engage in negotiations with each game provider — and for a full game portfolio, they need to cooperate with a wide range of them. As each contract includes its own fees, the costs (not to mention the time spent) can quickly add up.

However, you can save a lot of time and money by using a reputable aggregator. Doing so will not only offer a selection of new and innovative games through a single integration, but also regularly update the portfolio of game content.

Japan’s most popular sports to bet on

In Japan, the most popular sports for betting are horse racing, bicycle racing, and motorboat racing. Betting on these sports is controlled by the Japan Racing Association (JRA) and the National Association of Racing (NAR).

Japanese sportsbooks will also feature the country’s signature fusion of modernity and tradition; esports like CS:GO aren’t listed too far away from sumo wrestling. As for team sports, Japanese bettors love soccer, baseball, and basketball, though the most popular betting event is horse racing.

Online casino and sportsbook software

Finding quality software is essential for launching an online casino or sportsbook. The platform should not only be safe, reliable, functional, and user-friendly, but also visually attractive, because the first thing players will see is the design of the site. If they don’t like the aesthetic or if they find it difficult to navigate, chances are slim to none that they’ll bother signing up and playing.

Payment methods

Fast, smooth transactions are necessary for success in the gambling industry. The faster and easier it is for players to deposit and withdraw their winnings, the more loyal they will be to your platform. In addition, players need to provide a lot of ways to deposit, such as fiat currencies and e-wallets or cryptocurrencies.

In Japan, the authorities do not block payment systems, but some banks and payment processors can, so even though Visa and Mastercard are the usual solution, players also use e-wallets such as Neteller and Skrill.

They also look for ways to pay with cryptocurrency — another national passion: the country's crypto market is valued at approximately $1 trillion. It’s estimated that 2.31% of the population, nearly 3 million people, have some cryptocurrency. Bitcoin leads the way, as well as Ethereum. Ripple and XEM are also popular, as well as MonaCoin, Japan's own cryptocurrency.

To facilitate the integration of each payment system and reduce the paperwork generated by signing a separate contract with each vendor, you can use an aggregator to integrate all payment methods at once. For example, our Moneygrator solution combines 250 payment systems for different gambling markets in a single integration session.

Responsible gambling in Japan

Japan’s ministry of Health, Labor, and Welfare estimate that 3.6% of Japanese adults, or roughly 3.2 million people, are affected by problem gambling at some point in their lives — a much higher rate than other developed countries where gambling is regulated and problem gambling prevention measures are common.

In Japan, authorities are actively fighting against gaming and gambling addictions, as well as other addictions. Addiction treatment centers can be found in every part of the country. The largest addiction treatment facility in Japan — National Hospital Organization Kurihama Medical and Addiction Center, is located near the city of Yokosuka.

How Japan compares to other Asian gambling markets

To get a full picture of the gambling market in Japan, let’s compare it to other jurisdictions in the region. We always recommend starting with our interactive gambling regulations map and getting a free consultation with our lawyers to choose the market that suits your project the best.

How can Slotegrator help?

If the process of opening an online casino seems very confusing, complicated, and financially costly, that’s because it easily can be. Challenges such as creating a business structure, developing a platform, and dealing with international bureaucracy and regulations are just the beginning.

That is why many operators turn to aggregator companies, such as Slotegrator, to save time and money, avoid paperwork, and eliminate potential mistakes. In addition, instead of constantly negotiating with new game content providers, they can purchase a portfolio of 35,000 games from more than 180 developers in a single agreement.

We also offer the turnkey gaming platform solution to speed up the process of launching an online casino. In addition, our legal team is always ready to answer any and all questions about how to start an online gambling business in jurisdictions around the world.