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Public gambling in Japan has a long history, having developed in the form of horse racing, bicycle racing, boat racing, and auto racing. In recent years, Internet voting and improved facilities have made it so popular among a wide range of people.

This article describes the historical background of public gambling, its role in society, and its impact.

What is Public Gambling in Japan?

Public gambling in Japan is explained under the following headings.

  • Definition of Public Gambling in Japan
  • History of Public Gambling in Japan
  • Characteristics and Legality of Public Gambling

Knowing each of these details will definitely deepen your knowledge of public gambling. Please check them out.

Definition of Public Gambling in Japan

Public gambling in Japan is a legal gambling business operated by local governments or special government corporations for the purpose of obtaining general revenue.

Japanese law prohibits gambling between individuals under Articles 185-187 of the Penal Code.

However, exceptionally, only gambling sponsored by local governments or government-related organizations is legally operated.

Specifically, horse racing, bicycle racing, boat racing, and auto racing are known as “public sports” and are representative forms of public gambling in Japan.

Public gambling is more than just a form of entertainment; it serves as an important source of revenue to support local finances.

For this reason, it is common for local governments to operate directly as the organizer and use the proceeds for public services and infrastructure development.

The definition of public gambling also includes the aspect of “competitive sports,” which includes horse racing, bicycle racing, and other events themselves. These events are managed by local governments or government-funded special corporations, and are positioned as sports competitions.

Worldwide, it is rare to find a system in which gambling is operated exclusively by the government or local governments, as is the case in Japan. In other countries, gambling sponsored by private companies is often legal, but in Japan, the “government” is responsible for its operation.

Such a system is a unique feature of the Japanese gambling industry, which is deeply involved in the local economy and public services. It is operated by local governments and government agencies, with the objective of having revenues contribute to the development of local communities.

History of Public Gambling in Japan

Japan’s public gambling, including horse racing, bicycle racing, boat racing, and auto racing, were all legislated in order to secure financial resources after World War II.

Horse racing is a representative example of public gambling. The history of horse racing in Japan developed from the end of the Edo period to the Meiji period (1868-1912), and in 1923, the Horse Racing Law was passed and horse racing, including betting elements, was officially launched.

Bicycle racing began to operate as a public sport in 1948, when the Bicycle Racing Law was enacted to promote the bicycle industry.

Auto racing and boat racing have a history dating back to 1950 and 1951, respectively, under the Small Motor Vehicle Racing Law and the Motorboat Racing Law.

Nowadays, online sales through the Internet have made it easier for people to participate in public gambling.

On the other hand, the risk of dependence has become an issue, and is still being debated. It remains to be seen how public gambling will change in the future.

Characteristics and Legality of Public Gambling

Public gambling in Japan is governed by special laws. Therefore, it is legal gambling as it is not subject to gambling charges.

Laws such as the Horse Racing Law, the Bicycle Racing Law, the Motorboat Racing Law, and the Small Motor Vehicle Racing Law are in place to ensure that each sport is operated legally. This ensures that the organizers of each sport have the necessary legal foundation to operate and that transparency is maintained.

Furthermore, public gambling is managed and operated by the ministries and agencies with jurisdiction. For example, the Ministry of Agriculture, Forestry and Fisheries oversees horse racing, the Ministry of Economy, Trade and Industry oversees bicycle and auto racing, and the Ministry of Land, Infrastructure, Transport and Tourism oversees boat racing.

As a result, operations are strictly controlled to ensure that illegal activities are controlled and proper management is maintained. Public gambling, with its economic and social significance, will continue to play an important role in Japan as legal entertainment.

Types and Overview of Public Gambling in Japan

There are four types of public gambling in Japan

  • Horse racing
  • Boat Racing
  • Bicycle racing
  • Auto racing

This section provides a thorough overview of each. If you are not familiar with public gambling, this is a good opportunity to learn more.

Horse Racing

Horse racing is one of the oldest forms of public gambling in Japan. It is operated legally under the Horse Racing Law.

Its origins are ancient, and worldwide, the United Kingdom laid the foundation for horse racing as we know it today. Horse racing was first introduced to Japan in 1862, when the British Army held a horse race in Yokohama.

From there, the culture of horse racing spread to Japan, where it is now operated under two systems: the Japan Racing Association (JRA) and the Japan Racing Association (JRA).

Types of Horse Racing

  • Central horse racing (JRA): There are 10 race tracks throughout Japan, with the four major tracks in Tokyo, Nakayama, Hanshin, and Kyoto as the main tracks.
  • Regional horse racing: Sponsored by local governments and held at regional racetracks throughout Japan.

There are two types of race formats: flat and steeplechase, with distances ranging from 800m to 3,600m. In the steeplechase, obstacles are set up on the course, and jumping over them is a thrilling part of the race.

In such races, tickets can be purchased as part of the betting process. There are many types of tickets, including “single bet,” in which the bettor guesses the first-place finisher, “baren,” in which the bettor guesses the first and second finishers, and “trifecta,” in which the bettor predicts the positions of up to three horses.

Odds (dividend multipliers) vary depending on the degree of difficulty, and especially in the “trifecta” and “WIN5,” there is a high possibility of very high payouts.

Horse racing, which contributes not only to the appeal of racing but also to local finances and welfare programs, will continue to enliven Japan’s gambling culture.

Boat Racing

Boat racing is a sport using motorboats. Along with horse racing, bicycle racing, and auto racing, it is classified as a “public sport” sponsored by local governments.

The history of boat racing is relatively new: Japan’s first boat race was held in 1952 at the Omura Boat Racecourse (Nagasaki Prefecture).

However, motorboat racing itself, which is the basis of boat racing, had already been held as an amateur sport in Japan in the 1930s. Later, local governments introduced boat racing as a source of revenue to support postwar reconstruction, and it established itself as a public sport.

The main feature of such boat races is that only six boats can participate in each race, which is said to have a higher target ratio than other events.

The rules are three laps of the water surface, each lap being 600 meters, with the first boat to reach the finish line being the winner. It is an exciting sport that tests players’ abilities, as the timing of the start and the skill of turning have a great impact on the winner.

Boat racing, like other public sports, is increasing in popularity every year. In fiscal year 2009, the sales of boat races amounted to approximately 1.2 trillion yen and the number of users exceeded 280 million.

Bicycle Races

Bicycle racing is a form of public gambling in which seven or nine riders race around a mortar-shaped bicycle track, called a bank, to predict who will finish first.

Races are held 365 days a year at 43 bicycle racetracks across Japan. It can be enjoyed from early in the morning until late at night, allowing many fans to experience bicycle racing at any time of the day.

Bicycle racing was born in 1948, when the first race was held at Kokura Bicycle Racetrack in Kokura, Fukuoka Prefecture, to raise money for postwar reconstruction. The bicycle racing boom soon spread throughout Japan, so much so that bicycle racetracks were built one after another throughout the country.

And bicycle racing, a sport that originated in Japan, was adopted as an official event at the 2000 Sydney Olympics as “keirin. Japanese bicycle racers have been active in world competitions, and the sport is gaining a growing reputation both in Japan and abroad.

One of the features of bicycle racing is that races are held every day, 365 days a year, at a bicycle racing track somewhere in Japan, with morning, day, night, and midnight races available throughout the day.

The most popular type of bet is the “trifecta,” in which the first through third place finishers are placed in the same order, and the odds are 1/504 (1/210 for a seven-car field), which is difficult to beat but offers high payouts.

There are also multiple ways to bet, such as “triplet,” in which the bettor guesses the first three car numbers in random order, and “two-car single,” in which the bettor guesses the first and second car numbers in random order.

A portion of the proceeds from bicycle races is used for a wide range of social contribution activities, including manufacturing industry, sports promotion, and social welfare. It is not just a form of entertainment, but a form of gambling that contributes greatly to the development of society.

Auto Racing

Auto racing is a motor sport in which contestants compete at speeds of up to 150 km/h (150 mph). Auto racers compete for the first place on a special track on special motorcycles.

The origin of auto racing dates back to 1910, when a “motorcycle race” was held at Shinobazu Pond as a sideshow to a bicycle race. Later, it was held at Naruo Racecourse in 1914 and Meguro Racecourse in 1915, and it was expected to spread as a motorcycle sport.

However, due to fuel shortages caused by the Sino-Japanese War, the sport was temporarily banned. Later, following the success of bicycle racing as a sport with betting in 1948, a gambling element was introduced to auto racing.

In 1950, auto racing was first held as a public gambling event at Funabashi Auto Race Track in Chiba Prefecture, attracting nearly 100,000 spectators and establishing itself as one of the most popular forms of public gambling in Japan.

The competition consists of six to eight bikes running eight laps around a track measuring 500 to 600 meters per lap, with the fastest rider reaching the finish line being the winner. Riders are ranked into three categories, S, A, and B, according to their performance, and their ranks are reviewed every six months based on the results of all races.

The thrilling nature of the competition has attracted a great deal of attention, and the most popular betting method is the trifecta, in which bettors place their bets on the first three finishers in the same order and can expect to receive large payouts.

The combination of speed, thrill, and betting elements makes public gambling uniquely appealing.

The Relationship Between Public Gambling and Economic Impact

The following is an overview of the relationship between public gambling and the economic impact of public gambling.

  • Economic Impact of Public Gambling
  • Community revitalization and use of gambling proceeds
  • The social positioning of public gambling

The above information will help you understand the existence of public gambling. If you are interested, please read through to the end.

The Impact of Public Gambling on the Economy

Public gambling affects the Japanese economy in many ways. These impacts are broad in areas such as tax revenue, employment, and the tourism industry.

In public sports such as horse racing, bicycle racing, boat racing, and auto racing, a portion of the betting money is paid to the national and local governments in the form of tax revenues and earnings. This tax revenue is used to fund public works projects such as education, welfare, and infrastructure development, contributing to the development of local economies and the financial stability of the country.

The public gambling industry also creates many jobs. The operation of racetracks, bicycle and boat racing tracks requires a large number of employees, and jockeys, trainers, and facility staff make a living.

In addition, peripheral industries related to gambling, such as the food and beverage industry and the tourism industry, are also fostered, making a significant contribution to the local economy. This has led to the revitalization of local communities and the promotion of employment in rural areas.

Thus, public gambling has a significant impact on the Japanese economy. They will continue to play a role in stabilizing the economy.

Community Revitalization and Usage of Gambling Revenues

Public gambling proceeds are widely used to finance regional development and public works projects.

Uses of Public Gambling Proceeds

  1. Expenses for holding races
  2. In order to hold public games, costs are required for the maintenance of stadiums and race operations. This includes stadium repairs, facility improvements, security, etc.
  3. Prize money for athletes
  4. A portion of the wagering money is used to pay prize money to the athletes participating in the race. Prize money is a motivating factor for athletes and contributes to improving the quality of racing.
  5. Facility Maintenance and Repair
  6. Proceeds are also used to repair and renovate stadiums and surrounding facilities. This ensures the safety of the facilities and provides a comfortable environment for users.
  7. Payments to Associations and Organizations
  8. Payments to associations and organizations that oversee various sports are also important. They ensure the development of the industry as a whole and maintain transparency in the operation of the games.
  9. Payments to Publicly Operated Games
  10. A portion of the proceeds from public gambling is paid to the national and local governments. It is used as a financial resource for public projects, and is utilized for various social infrastructure development and welfare programs.
  11. As described above, the proceeds from public gambling are used for the development of local communities and public works, and have great social significance.

Social Positioning of Public Gambling

Public gambling has a special place in Japanese society. It refers to four types of events: horse racing, bicycle racing, boat racing, and auto racing, and is a legal form of gambling recognized by law.

Therefore, unlike regular gambling, it is organized by the national and local governments, and the proceeds are returned to the public interest.

On the other hand, public gambling also poses social problems. In particular, gambling addiction is a major issue.

The economic and mental burden caused by gambling addiction is a serious problem for individuals and families. For this reason, the national and local governments are working to combat addiction and have established prevention programs and counseling services.

Thus, while public gambling has social significance, it faces challenges such as addiction problems. How to deal with public gambling and give back to society will be an important theme for the future.

Latest News on Public Gambling in Japan and Current Regulations

This section describes the latest news on public gambling in Japan and the current state of regulations.

  • Recent Regulatory and Legal Changes
  • Differences between public gambling and online casinos

This is what you should check to avoid being misled by misinformation. If you are concerned about public gambling, please refer to this page.

Recent Regulations and Law Reforms

Recent moves to amend regulations and laws in public gambling have focused on measures against gambling addiction and the protection of minors.

In particular, concerns about online gambling have been growing, and the government and related agencies are in the process of strengthening regulations.

In fact, in 2022, approximately 80% of all public gambling was conducted via Internet voting. As a result, the number of users and sales doubled.

However, this convenience has also led to an increase in gambling addiction, and countermeasures are required.

The lowering of the age of adulthood from 20 to 18 in 2022 has also had an impact on gambling regulations.

In line with this change, laws related to public sports, such as the Horse Racing Law, the Bicycle Racing Law, and the Small Motor Vehicle Competition Law, have also been revised. The age at which the purchase or transfer of voting tickets is prohibited has been changed from “minors” to “persons under 20 years of age.

As a result, although the age of majority is now 18, participation in public gambling continues to be prohibited for young people under the age of 20.

Differences between Public Gambling and Online Casinos

There are differences between public gambling and Japan’s recommended online casinos in terms of return ratios, game play, and business models.

Differences in Redemption Rates

The rate of return is an important indicator of how much of a player’s bet is returned in the form of winnings. Each type of gambling has a different rate of return.

Casino

  • The rate of return is high, about 90-98%, and many games favor the player, such as blackjack and baccarat. In some cases, the rate of return is over 100%, giving players a very high winning percentage.

Public Gambling

  • Horse racing, bicycle racing, boat racing, and auto racing have reduction rates of approximately 74-75%. The reason for the high deductibility of public gambling is that it is used to pay for operating expenses and social programs.

And public gambling takes place in physical stadiums or specific facilities. Online casinos allow players to play anywhere, anytime, as long as they have access to the Internet.

Thus, another difference between public gambling and online casinos is whether it is safe to play or not.

Conclusion

Public gambling in Japan is an important source of revenue for local and national governments. It is used for local infrastructure development, social welfare, and sports promotion, and has a significant impact on the economy and society.

However, public gambling also has issues such as low return ratios and addiction risk. Players must be aware of the risks before they enjoy the game.

This is an area where future regulations and social issues must be addressed while contributing to regional revitalization and securing public resources. We will continue to keep an eye on developments in public gambling in Japan.