Japan’s esports shielded from the impact of Gambling Laws

Japan’s esports ecosystem, which has been steadily expanding, received renewed clarity following a detailed legal assessment by Nishimura & Asahi, one of the country’s leading law firms. The attorneys stated that recent enforcement measures targeting illegal online gambling and money games are not expected to disrupt the structure or legality of esports tournaments. Their analysis highlights that compliance remains achievable when organisers ensure that prize pools are not funded directly or indirectly through participant entry fees. Instead, sponsorship-driven prize money continues to be the recommended structure under Japan’s Penal Code.

Prize regulations have also evolved. Historically limited by the Premiums Act, esports prize pools were capped at JPY 100,000 unless considered compensation for services. Regulators now recognise that professional gameplay offers entertainment value, allowing significantly higher prize amounts. This shift also extends to participants emerging from open qualifiers, provided certain structural measures such as issuing professional licenses or formal participation agreements are in place.

Organisers must still navigate a multifaceted compliance landscape that includes copyright licensing, broadcasting permissions, entry-fee rules and personal data protection. Visa processing also remains a critical challenge for international competitors, with past delays preventing players from participating in major events.

Despite the complexities, the outlook for Japan’s esports industry is largely positive. Clearer guidelines on prize structures, entry-fee usage and event classifications have reduced uncertainty and created a more stable environment for large-scale tournaments. As Japan prepares for significant upcoming events, continued regulatory clarification is expected to support further industry growth.