In recent years, sports betting has boomed in popularity as legislation in territories such as the US and Brazil has been liberalized and sports properties have become more receptive to a vast new revenue stream.
Japan has a population of over 120 million and high-profile professional soccer, baseball, rugby union, and more, as well as numerous mixed martial arts and kickboxing promotions. Despite this, the country’s heavily regulated sports betting industry is mostly limited to in-person horse racing wagering.
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The situation, however, may not always remain that way, and several firms are operating in the sports space in the country that are already anticipating a move to open up the sports industry in the country that could have a revolutionary effect on revenues.
Nandora, the operator of sports predictions platform FanCraft, is one such firm.
In a similar fashion to US sports betting giants such as FanDuel and DraftKings, which sprung out of fantasy sports and predictions gaming platforms into sports wagering upon legalization, Nandora, which is partnered with a number of the country’s professional sports leagues and teams, could leverage its position in the sports gaming industry and its connections with properties to move into sports betting.
To give an overview of where the Japanese sports gaming market stands and how it could move in the future, Nandora chief operating officer and chief financial officer Keigo Namiki spoke to Sportcal (GlobalData Sport) about the Japanese sports gaming industry and Nandora/FanCraft’s place in it.
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By GlobalDataWhat does Nandora bring to its partnerships with sports organizations?
“Our business model is fully legal and secure in Japan, as certified by a leading legal firm in the country. This certification helps Nandora/FanCraft earn the trust of our partners. Our 100+ partners use Nandora/FanCraft to boost their fan engagement through predictions.
“Nandora/FanCraft is also a sponsorable platform that partner teams use not only to upsell existing sponsorships but also to attract new sponsorship opportunities.”
Is future overseas expansion possible, given the popularity of sports gaming in international markets?
“We believe that future overseas expansion is feasible, particularly as we have the ability to develop an OEM app that can be tailored to meet the needs of different international markets. Our platform enables sports organizations to offer fans a wide variety of flexible prediction content, while also providing a new sponsorship opportunity.”
Why has sports gaming such as fantasy sports and predictions become so popular and why is it important for sports properties to leverage this space?
“Sports gaming in Japan was introduced over 100 years ago with the advent of sports predictions in horse racing in 1923. It later expanded to include motorboat racing, bicycle racing, and auto racing. Collectively known as Japan’s public sports gambling, this market is strictly regulated and has a total market size of $50 billion. Given this foundation, the potential legalization of sports betting in Japan could unlock a massive market.
“In the fantasy sports space, earlier attempts in Japan faced challenges such as technological limitations and insufficient user incentives. However, as sports organizations increasingly emphasize fan engagement, there is growing momentum to embrace innovative forms of entertainment such as fantasy sports and non-betting prediction-based content.
“This shift is particularly valuable for sports properties, as it enables them to engage fans before games and maintain their interest as part of their daily lives.”
Is there a strong crossover between sports gaming and sports betting?
“We believe there is a strong crossover between sports gaming and sports betting due to the quality of prediction content. On our platform, many fans from various sports properties engage with prediction content, even though it is not a betting service.
“The crossover exists because fans increasingly want to feel more involved in the games and enjoy making predictions as a way to support and engage with their favorite teams and players, regardless of whether they place a bet or not.”
How will the Japanese market react if the government were to legalize sports betting and is Nandora positioned to capitalize?
“Currently, sports betting is prohibited in Japan, but if the government were to legalize it, we anticipate strong interest from both domestic and international companies, as research suggests the potential market size could reach $45 billion.
“Our business model is currently based on sponsorships and is fully compliant with existing regulations. We are committed to creating value for stakeholders in the Japanese sports industry, including grassroots organizations, by building a sustainable ecosystem—regardless of how our business model evolves once the market opens.
What do you see as the future of the sports gaming space, are there new technologies or popular businesses coming through?
“The sports gaming space is evolving rapidly, with new technologies being introduced every year both in the Japanese market and globally. In Japan, for example, TGL has become a hot topic, and we are seeing an increasing number of sports tech businesses emerging, focusing on both competition and marketing innovations. Sports gaming, in particular, offers an excellent way to engage fans, and it’s becoming more integral to the sports entertainment experience.
“Looking ahead, the key to accelerating this trend will be building strong relationships with Japanese sports organizations. Leveraging new technologies will be crucial—not just to protect existing sports rights, but to expand and enhance them.
“The real opportunity lies in using tech to create new fan engagement opportunities, enhance live game experiences, and develop deeper connections between fans and teams. As the market matures, companies that can bridge the gap between sports and technology will be in a strong position to lead the way.”
