Local media has reported that startups in Japan are skirting regulations and offering prediction market trading, even though there is no framework in Japan for these offerings, as in the US.
Homegrown platforms launched by Gen Z entrepreneurs allow users to wager on multiple events and, afterwards, trade the points they earn for monetary rewards such as gift cards.
Players can choose between binary or multiple-choice outcomes, but unlike Polymarket and Kalshi, money doesn't change hands.
These Japanese platforms operate on a non-monetary basis. The non-monetary tokens won can be exchanged for gift coupons or retail loyalty points.
The indirect payout system mimics strategies used in Japan’s $100bn pachinko industry, which relies on legal loopholes to operate pinball machines and remain within the law.
Miraima, Japan’s largest trading platform, has amassed close to 1 million monthly users since its November debut, driven by interest in recent sporting events such as the World Cup. Its players place wagers based on points earned from watching in-app ads or playing app games.
When a Miraima user wins a bet, they can use those points to either place another bet or convert them into digital awards such as Amazon gift cards or PayPal payments.
Responding to the adoption of such platforms and anticipating long-term opportunities, it is rumoured that Polymarket has recently appointed a local lobbying representative to campaign for Government approval for its operations.
A spokesperson for Japan’s Justice Ministry refused to comment on the legality of such platforms, explaining that each case will be reviewed separately under Japan’s Penal Code, which generally prohibits gambling.
Earlier this month, South Korean police began investigating local customers of Polymarket on suspicion of illegal gambling
