Japan's prediction markets use shopping vouchers to bypass gambling laws

Prediction markets are quietly taking root in Japan through alternative reward models that use shopping vouchers and loyalty points instead of cash payouts, circumventing the country's strict gambling laws that continue to block global platforms Polymarket and Kalshi. Japanese operators are adapting regulatory gray-zone tactics similar to those that allowed the pachinko industry to flourish despite long-standing prohibitions on real-money betting, Bloomberg reported. The development reflects a broader pattern in Asian markets where tighter controls on traditional betting have prompted locally tailored compliance structures. Polymarket and Kalshi have surged into the global mainstream, Japan and neighbors like China have maintained more restrictive frameworks that shut out these CFTC-registered venues.