How gambling is regulated in Japan and South Korea

Japan: "ban + narrow exceptions" and a course towards online control

Legal basis and what is allowed

The general prohibition is enshrined in the Criminal Code; only "public" bets are allowed: horse racing (JRA/NAR), cycle track (keirin), motorboats and motorcycles, as well as lotteries and toto football pool. Online rates are allowed only within the framework of these state/municipal products.

Outside of exceptions, online casinos are considered illegal for players and operators, even if the site is licensed abroad. Law enforcers regularly suppress such services and their advertising.

IR casino: small, slow, under the microscope

Since 2018, a package of laws on integrated resorts (IR) has been in effect and the Japan Casino Regulatory Commission (JCRC) has been created (2020). Today, only Osaka IR is approved; the remaining licenses are planned to be renewed for selection. The first launch of the complex is expected around 2030.

Pachinko - "gray white" phenomenon

Pachinko/pachislo are legally designed as entertainment with prizes. A "three-shop" exchange device allows you to convert a "special prize" into cash at a separate kiosk without formally violating the ban on cash payments in the hall.

Course 2025: tightening online and advertising

In September 2025, amendments to the basic law on combating addiction came into force, which, among other things, prohibit advertising of online casinos and strengthen the suppression of illegal online; there were the first detentions for promoting offshore casinos.

Conclusion on Japan. Only "public betting" and lotteries are legal; IR-casino - piece project under total supervision; online casino - an active preventive zone. Operators should think B2B (content/payments/responsible play) and tourism around IR, not mass B2C.

South Korea: A'tourism model' and sweepstakes for all

Framework and regulators

Policy coordination is carried out by the National Gambling Control Commission (NGCC); the law explicitly lists legal channels: casinos, horse racing, bicycle and motor boats, lotteries, Sports Toto and bullfighting.

Casino: "for foreigners" plus one exception

There are 17 casinos for foreigners and the only casino for citizens is Kangwon Land, created as a tool for the development of the former mining region. Mode for locals - hard (restrictions on visits, limits); in 2024-2025, the government pointwise changed the parameters and zoning. Online casinos for citizens are prohibited.

Betting and lotteries: legal but under tight supervision

Sports Toto and sweepstakes (horses, bicycles and motolodoks) are legal as instruments of the state program for the development of sports under the National Sports Promotion Act and special laws on bicycle/motorboat racing. Fighting the illegal online betting market is a priority. The idea of ​ ​ Esports Toto is being discussed, but this is still the subject of political debate.

Trend 2025: talking about a "single window"

Experts point to the fragmentation of supervision and propose a more unified regulatory system to support the country's tourism strategy.

Output by RC. The base is tourism and limited local access to gambling, with legal betting and Sports Toto. Online casinos are illegal; the state's stake is on control and targeted reforms, not on broad liberalization.

Comparison on one page

Practical conclusions for business

B2C operators are online: in both countries - "red light." In Japan, only government products (public bets/lotteries); in RK - Sports Toto/sweepstakes in the established form.

B2B providers: chance - in the infrastructure of responsible play, anti-fraud, payment security, advertising compliance and in tourism around IR/casino.

Marketing: no promises of "easy money," age filters, localization of disclaimers; in Japan from 2025 - a strict ban on advertising online casinos.

Japan and South Korea prefer managed narrow legality: a minimum of tolerances, a maximum of supervision. In Japan, these are "public" bets, lotteries and piece IR projects with a tough course against online; in the Republic of Kazakhstan - tourist casinos, one facility for local, Sports Toto and sweepstakes. For companies, this means: B2B solutions and compliance technologies are valued here more than attempts at "fast" B2C online.