In Japan, local startups have begun launching prediction market platforms to circumvent the gambling ban by replacing real money bets with virtual points, according to Bloomberg.
Users earn points for registration and watching advertisements, which can then be exchanged for gift cards from Amazon and payments through services like PayPay and Rakuten for accurate predictions. The founders of these platforms argue that betting with points does not fall under the local gambling prohibition, as players are not risking anything of value.
The largest of these platforms, Miraima, has attracted nearly 1 million monthly users since its launch and, according to its founder, is already profitable through partnership commissions from advertising and app installations. Similar applications have also been launched by the startup POYP and mobile game developer Gumi.
The article notes the pachinko industry, valued at around $100 billion, which has long operated on a similar scheme of indirect payouts. Some lawyers believe that these platforms operate under a sweepstakes model and may fall under its regulation.