Entering Japan’s Gaming Market: Legal Issues Around Social Casino and Sweepstakes
September 25, 2025
Key Words: Market Entry Japan, Social Casino Japan, Sweepstakes Japan, Gambling Law Japan, Penal Code Article 185, Unfair Premiums Act Japan, Payment Services Act Japan, Act against Unjustifiable Premiums and Misleading Representations Japan, Prepaid Payment Instruments Japan, Specified Commercial Transactions Act Japan, Consumer Protection Gaming Japan.
Introduction[1]
Japan is one of the most attractive yet legally complex markets for the global gaming industry. The market is characterized by a highly engaged user base, advanced smartphone penetration, and a cultural familiarity with game-like experiences such as pachinko and gacha. At the same time, Japan is also home to some of the strictest gambling prohibitions among developed countries, creating a uniquely challenging environment for operators of “social casino” or “sweepstakes” models. While these models have expanded rapidly in other jurisdictions, their status under Japanese law depends on careful legal structuring.
This article provides an overview of the legal landscape in Japan, clarifies the boundaries between entertainment and gambling, explains the compliance framework for sweepstakes, and outlines practical steps foreign operators must take when considering entry into the Japanese market.
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[1] This communication is provided as a service to our clients and friends and is for informational purposes only. It is not intended to create an attorney-client relationship or constitute an advertisement, a solicitation, or professional advice as to any particular situation. Further, the legal framework related to gaming, sweepstakes, and related consumer protection laws in Japan is subject to frequent amendments and evolving regulatory interpretations. Readers are strongly encouraged to verify the most up-to-date information and seek advice from counsel before taking any action.