Gambling Laws in Korea vs Japan: A Complete Comparison

South Korea and Japan, two of Asia's largest economies and closest neighbors, have historically shared similar approaches to gambling regulation. Both nations maintained strict prohibitions on most gambling activities for decades. However, their regulatory paths have diverged significantly in recent years, with Japan moving toward liberalization while Korea maintains its restrictive stance.

This comprehensive comparison examines how gambling laws differ between these two nations, exploring the historical context, current regulations, enforcement approaches, and future trajectories of gambling policy in each country.

Historical Background: Shared Prohibitionist Roots

Both Korea and Japan have deep historical roots in gambling prohibition. In Japan, the Criminal Code of 1907 established penalties for gambling that remain largely intact today. Article 185 of Japan's Criminal Code prohibits gambling, with exceptions carved out through special legislation. Similarly, South Korea's Criminal Act, particularly Article 246, criminalizes gambling with limited exceptions.

The post-World War II period saw both nations reinforce gambling restrictions as part of broader social control measures. Korea's modern gambling laws emerged during the military government era, while Japan's gambling prohibition was reinforced during the Allied occupation.

Current Legal Framework: Diverging Paths

South Korea's Restrictive Approach

South Korea maintains one of the world's most restrictive gambling regimes for its citizens. The legal framework permits only limited exceptions to the general prohibition.

Legal gambling options for Korean citizens include state-run lotteries operated by the Korea Lottery Commission, sports betting through the Korea Sports Promotion Foundation (limited to certain sports with maximum bet restrictions), horse racing operated by the Korea Racing Authority, bicycle and boat racing in designated venues, and Kangwon Land, the sole casino where Korean citizens can legally gamble.

Korea operates 17 foreigner-only casinos, primarily in major hotels and tourist areas. These venues strictly prohibit Korean citizen entry, requiring passport verification for all guests. Violations by casino operators can result in license revocation and criminal prosecution.

Japan's Liberalization Path

Japan has taken a markedly different approach. While the Criminal Code still technically prohibits gambling, the government has created an expanding framework of legal exceptions. Traditional legal gambling in Japan includes horse racing through the Japan Racing Association, powerboat racing, bicycle racing (keirin), and motorcycle racing (auto race).

The transformative change came with the Integrated Resort (IR) Promotion Act of 2016 and the subsequent IR Implementation Act of 2018. This legislation authorized the development of up to three large-scale integrated resorts featuring casinos, hotels, convention centers, and entertainment facilities.

Regulatory Comparison Table

The Pachinko Question: Japan's Gray Zone

One cannot compare gambling in Korea and Japan without addressing pachinko, Japan's unique quasi-gambling industry. Pachinko parlors, numbering approximately 7,500 establishments across Japan, operate in a legal gray zone that has no equivalent in Korea.

Technically, pachinko avoids classification as gambling through a three-shop system. Players win steel balls that can be exchanged for prizes at the pachinko parlor. These prizes are then sold for cash at separate, ostensibly independent exchange shops. This separation technically complies with gambling prohibitions, though critics argue it represents de facto gambling.

The pachinko industry generates estimated revenues exceeding 15 trillion yen annually, employing hundreds of thousands of workers. Korea has no comparable industry, having maintained stricter interpretation of gambling prohibitions that prevent such gray-zone operations.

Online Gambling: Similar Restrictions

Both nations maintain strict prohibitions on online gambling. South Korea aggressively blocks access to offshore gambling sites and prosecutes both operators and users. Japan similarly prohibits online gambling, though enforcement has historically been less aggressive than Korea's approach.

Korea's National Police Agency conducts ongoing operations targeting illegal online gambling, with recent crackdowns resulting in thousands of arrests annually. Japan's enforcement, while present, has focused more on domestic operators than individual gamblers.

Neither country has moved toward online gambling legalization, though Japan's IR legislation has sparked discussions about potential future online extensions.

Enforcement Philosophies

Korea's Aggressive Approach

South Korea's enforcement strategy emphasizes deterrence through visible prosecution. The National Police Agency maintains a dedicated Cybercrime Investigation Division targeting illegal gambling. Penalties include imprisonment of up to three years and fines up to 20 million won for habitual gambling.

Notably, Korean law applies extraterritorially. Korean citizens who gamble habitually abroad can face prosecution upon return. This unique provision reflects the government's comprehensive approach to gambling prevention. For a detailed examination of how this extraterritorial jurisdiction affects Korean travelers seeking casino access, see our analysis of Korean gambling tourism and its legal implications.

Japan's Pragmatic Enforcement

Japan's enforcement approach is more pragmatic, focusing on organized crime involvement rather than individual gamblers. The tolerance of pachinko demonstrates a willingness to accept gray-zone activities when they operate within understood boundaries.

Japan's integrated resort legislation includes strict anti-money laundering provisions and organized crime exclusion measures, reflecting lessons learned from international casino jurisdictions.

Gambling Addiction Concerns

Both nations express concern about gambling addiction, though their responses differ. Research suggests Koreans may be particularly vulnerable to gambling addiction, with studies indicating Koreans are two to three times more likely to develop gambling problems compared to other populations.

Korea's Korean Center on Gambling Problems provides treatment and prevention services, while strict regulations aim to limit gambling exposure. Japan has established the Casino Administration Committee to oversee integrated resort operations and implemented citizen entry restrictions including mandatory admission fees and visit frequency limits.

For information about gambling addiction resources in Korea, visit our responsible gambling page.

Economic Considerations

Economic motivations have driven Japan's liberalization while Korea maintains restrictions despite potential revenue. Japan's integrated resort initiative aims to attract international tourists and boost regional economies. The Osaka IR, scheduled for opening in 2030, is projected to generate substantial tax revenue and create thousands of jobs.

Korea's Kangwon Land demonstrates the economic potential of citizen-accessible gambling. The casino generates over 1 trillion won annually, contributing significantly to regional development in the former mining area. However, the government has resisted expanding citizen casino access despite the demonstrated revenue potential.

Future Trajectories

Japan's Expansion Plans

Japan continues advancing integrated resort development. Osaka received the first IR license in 2023, with construction underway for a projected 2030 opening by MGM Resorts and ORIX Corporation. Additional licenses may be awarded for Tokyo and other regions. The success of initial IRs may influence future expansion of legal gambling options.

Korea's Uncertain Path

Korea shows no indication of significant liberalization. Proposals to allow additional citizen-accessible casinos have repeatedly failed in the National Assembly. The extension of Kangwon Land's monopoly through 2045 suggests continued restriction on citizen gambling access.

However, Korea's approach to esports and skill-based gaming may evolve as these industries grow. The distinction between gambling and competitive gaming remains contested, potentially opening regulatory gray zones similar to Japan's pachinko industry.

Frequently Asked Questions

Which country has stricter gambling laws, Korea or Japan?

South Korea has stricter gambling laws overall. While both countries historically prohibited most gambling, Japan passed the Integrated Resort (IR) Promotion Act in 2016 allowing large-scale casino resorts where Japanese citizens can gamble. Korea only permits one casino (Kangwon Land) for citizens, maintaining its restrictive approach.

Can Korean citizens gamble in Japan?

Yes, Korean citizens can legally gamble at casinos in Japan when the integrated resorts open. However, under Korean law, Korean citizens who engage in habitual gambling abroad may face prosecution upon return to Korea, with penalties of up to 3 years imprisonment or fines up to 20 million won.

Why did Japan legalize casinos while Korea maintains restrictions?

Japan legalized casinos primarily to boost tourism and economic development. The government views integrated resorts as economic drivers that can attract international visitors. Korea, in contrast, maintains restrictions due to concerns about gambling addiction among Korean citizens, with studies showing Koreans are two to three times more likely to develop gambling problems.

Is pachinko legal in Korea?

No, Korea does not have pachinko parlors. Korea maintains stricter interpretation of gambling laws that prevent the type of gray-zone operations represented by Japan's pachinko industry. Games resembling gambling are generally prohibited in Korea.

Which country is better for gambling tourism?

For tourists seeking casino gambling, Japan will offer more options once integrated resorts open (projected 2030 for Osaka). Currently, Korea offers 17 foreigner-only casinos in tourist areas. Japan's pachinko parlors offer a unique gambling-adjacent experience unavailable in Korea. Neither country permits online gambling.

Conclusion

South Korea and Japan represent contrasting approaches to gambling regulation in East Asia. According to International Association of Gaming Regulators (IAGR) classifications, while both nations share prohibitionist roots, Japan has embarked on a liberalization path through integrated resort legislation, while Korea maintains stringent restrictions with only minimal exceptions.

These differences reflect distinct policy priorities. Japan emphasizes tourism development and economic growth, accepting managed gambling as a tool for achieving these goals. Korea prioritizes citizen protection from gambling harms, maintaining restrictions despite potential economic benefits.

For researchers, policymakers, and observers interested in Asian gambling regulation, the Korea-Japan comparison offers valuable insights into how similar cultures can adopt divergent regulatory approaches based on different assessments of gambling's costs and benefits.