Most Popular eSports Bookies in Japan

Additionally, an esports school for high school students (known as eSports High School) was established. eSports High School is essentially promoting itself as a trade school for the rapidly expanding and vibrant game media industry. Competitive pro gamer is just one of the many options on its list of possible careers for graduates, including streamer, game developer, virtual YouTuber, gaming journalist, programmer, esports pundit, and 3-D CG designer.

Fortunately, this all changed. When the world entered the 2000s, long gone were the days when gambling and having fun were linked to negative connotations, such as violence, public disturbance, and riots. Nowadays, gambling in Japan is organized, and having fun is no longer associated with crime. And nowadays, esports betting has become part of the picture.

This significant change to gambling also has to do with the popularity of the internet in Japan. Decades ago, it was challenging for most people in the country to access the internet. But as of the 2000s, that challenge was no more. Nowadays, a person can go almost anywhere and access the internet. And the easier the access to the internet is, the more people will want to access esports betting sites.

The support of the Japanese government for esports betting can seem overwhelming. NTTe-Sports, the competitive gaming subsidiary of telecommunications corporation NTT, and Tokyo Verdy's e-sports spinoff (which plays games outside the sports genre as well) support eSports High School, with members of Verde active in student education.

If the concept of a gaming high school is perplexing, keep in mind that high school in Japan is not part of the obligatory education system, and high schools with a trade school-like component to their curriculum are not uncommon. "Professional gaming, as a vocation, is incredibly challenging, and therefore our goal is to provide students with abilities that can be applied not just in competitive gaming, but in a variety of ways," the eSports High School website states.

Future of esports in Japan

Looking ahead, the fate of esports and esports betting in Japan is about to get better. Of many things, this is linked to the fact that Japan is a country that embraces change. The Japanese people, who tend to be lifelong learners, are also worth crediting for this optimistic outlook on esports and the betting industry's future.

In 2022 and beyond, a clarification of the legal status of esports betting in the country would undoubtedly aid the industry's development. It remains to be seen whether the Japanese government, which has hitherto been hesitant to legalize many various types of betting, will move to explain the situation.

Given the popularity of esports like Call of Duty: Modern Warfare, League of Legends, CS: GO, and Overwatch in particular, as well as the unique characteristics of the Japanese market in terms of the most popular esports titles, some clarity on esports betting would be quite beneficial.

Esports betting and gambling tax laws are a little complicated. Winnings from horse racing are taxable, but only if you win more than $500,000 per year. You also can't deduct the cost of losing bets from your winnings. You must pay tax on your earnings even if you lose $600,000 in bets in a year.

Note that while only restricted esports betting is permitted in Japan, the tax code does not handle wagers on other sports. Because the Japanese government does not regulate sportsbooks that operate in the country, it is doubtful that any taxes will be withheld. It's essential to speak with an accountant about your tax position.

Earlier, it was mentioned three Japanese legislative laws re-shaped the esports market. The following are those laws:

1. Fueiho

Under this law, "Game Centers" (i.e., amusement arcades) are subject to particular laws under the Fueiho (described as a business where the owners equip the arcade with slot machines, TV games machines, or other entertainment facilities in a partitioned space and allow guests to play the game).

Suppose a business is subject to the Fueiho. In that case, it must obtain permission to operate from the Prefectural Public Safety Commission and adhere to several restrictions, including limiting business hours, restricting access to minors, and prohibiting the payment of prize money to players if they hold competitions.

2. The Premiums Act

The Premiums Act prohibits businesses from charging exorbitant premiums in exchange for their services. In Japan, the main question with esports was whether the prize money paid by the game's publisher for the competition was considered Premiums for the publisher.

If an esports competition's prize money is subject to the Premiums Act, the amount of prize money cannot exceed the lower of I 20 times the transaction's value; or (ii) 100,000 Japanese Yen (about $900).

3. The Penal Code

Gambling is severely regulated in Japan, and anyone who gambles or runs a gambling facility faces criminal charges. Betting is defined as follows in the Japanese Penal Code:
"Betting a property on a competition whose outcome is determined by chance."

This applies not only to esports betting but also to esports competitions. When players in an esports competition pay registration costs to the competition's organizer, and the prize money includes the registration fees (which is almost always the case), paying registration fees might be construed as betting. Because you are "betting a property on a contest whose outcome depends on chance" by paying the fees, you are "betting a property on a contest whose outcome depends on chance."

Bettors can use both Neteller and Skrill to make a deposit. Both are online e-wallets that may be used to make purchases online. A person can transfer money from their bank account to their Skrill or Neteller account and then use those funds to make a deposit.

Bitcoin and other cryptocurrencies are other possible alternatives for some bookmakers. A bettor can transfer funds directly from their bitcoin wallet to their esportsbook if that bookmaker accepts bitcoin. Bitcoin incurs miner fees, yet it is one of the most secure solutions available outside e-wallets. E-wallet and bitcoin deposits are rapidly processed, and bettors can begin wagering right away.