Article 1.　The horse racing may be held by the Government, by the prefecture, or by the city which has sustained serious damage from disasters and has been designated by the Prime Minister (hereinafter referred to as the designated city), under the provisions of this Law.

2.　The horse racing held by the Government shall be called the national horse racing and the horse racing held by the prefecture or by the designated city the local horse racing.

3.　Any person other than the Government, prefecture or designated city may not hold the horse racing issuing the betting ticket or anything similar thereto.

Article 2.　The race tracks of the national horse racing shall be eleven in number, that is:Sapporo, Hakodate, Fukushima, Niigata, Nakayama, Tokyo, Yokohama, Kyoto, Hanshin, Kokura and Miyazaki Race Tracks.

Article 3.　The race meeting of the national horse racing shall not be held more than twice a year at each race track; provided that, in case it can not be held twice a year at a race track owing to such an unavoidable reason as a natural calamity, it may be held thrice a year at its neighboring race track.

2.　The Government may, for the time being, hold the national race meeting four times a year at the Kyoto and Kokura Race Tracks until it becomes possible to hold the race meeting at the Hanshin and Miyazaki Race Tracks, notwithstanding the provisions of Par.1.

3.　The days of the race meeting in each term as mentioned in the preceding two paragraph shall not exceed eight days.

Article 4.　The Government shall raise the admission fee of between 30 yen and 100 yen in which the admission tax and the surtax of the admission tax in accordance with the provisions of the Local Tax Law (Law No.110 of 1948) are included from any visitor when the race meeting is held;provided that the Minister of Agriculture and Forestry may permit visitors to enter the race track free of charge within the limit of two thousand persons in each term.

2.　The admission tax and the surtax of the admission tax raised in accordance with the provisions of the preceding paragraph shall be delivered by the Government to the local public body concerned.

3.　During the period until the date on which the Local Tax Law becomes effective, in Par.1, "the Local Tax Law (Law No.110 of 1948)" shall read "the Admission Tax Law (Law No.44 of 1940)" , "the admission tax and the surtax of the admission tax" shall read "the admission tax" , and the provisions of Par.2 shall not apply thereto.

Article 5.　The Government may sell the betting ticket of which the face value is ten yen or twenty yen at its face value.

2.　The Government may sell the betting ticket which represents ten or one hundred chances of the betting ticket as mentioned in the preceding paragraph.

Article 6.　The betting method shall consist of the winning, placing and forecasting systems.

Article 7.　In the winning system, the horse of the first arrival shall be the winner.

2.　In the placing system, the horse of the first arrival in case the number of starters is no more than four when the betting ticket begins to be sold, the horses of the first and second arrival in case the number of starters is between five and seven, the horses of the first, second and third arrival in case the number of starters is more than eight, shall be the winner.

3.　In the forecasting system the set combining the horses of the first and second arrival in the order of arrival shall be the winner.

4.　In the forecasting system, in case the number of starters is more than seven, the ballot number may be placed on starters in accordance with the example as shown in Appendix No.1.

5.　In case the ballot number is placed in accordance with the provisions of the preceding paragraph, the said ballot number shall be deemed the number of the horse in the forecasting system.

Article 8.　The Government shall deliver to the holder of the betting ticket on the winner or placed horses as the dividend the amount of each betting ticket on the winner or placed horses concerned, plus such balance, which is to be divided into each betting ticket, as remained after deducting the amount calculated by applying Formula No.2 as provided for in Appendix No.2, from the amount calculated by applying Formula No.1 as provided for in Appendix No.2, to the net proceeds of the betting ticket (such balance as remains after deducting the amount to be repayed in accordance with the provisions of Art.12 from the total proceeds of the betting ticket. The same shall apply hereinafter.) as divided into parts in accordance with each method of betting.

2.　In case the amount calculated in accordance with the provisions of the preceding paragraph is less than the face value of the betting ticket, the amount of the dividend shall be represented by the said face value.

Article 9.　With regard to the net proceeds in the case of there being no holder of the betting tickets on the winner or any placed horse, the amount which remains after deducting therefrom the amount represented by 25 per cent of the net proceeds and the amount calculated by Formula No.2 as provided for in Appendix No.2, shall be repaid as dividends proportionated to each betting ticket to the holder of the betting tickets on the horses other than the winner or placed horses which have run the race concerned.

Article 10.　In delivering the devidends, if the amount calculated in accordance with the provisions of the preceding two Articles has any small pittance less than one yen, the small pittance shall be omitted.

2.　The amount arisen from omitting the small pittance as mentioned in the preceding paragraph shall be received by the Government.

Article 11.　The claim for the dividends as mentioned in the provisions of Arts.8 and 9 shall be extinguished by prescription in case it is not exercised for full one year.

Article 12.　If, after the betting ticket has been sold, the case which comes under any of the following Items has occured in respect to the race concerned, the betting on the said race shall be null and void:

2.　In any case as mentioned in the preceding paragraph, any person who has the said betting ticket may demand to the Government redemption of the ticket at face value in exchange for the said betting ticket.

3.　The claim as mentioned in the preceding paragraph shall be exercised within one year after the said betting ticket is been sold.

4.　In case such a horse as indicated in the ticket which has been sold (fellow one except either of horses indicated in the case where the horses of the same ballot number are combined to a set in the forecasting system), has not started, the same as the preceding three paragraph shall apply to the betting on the said horse, (or the combination to which the said horse belongs in the case of the forecasting system).

Article 13.　No person may enter his horse in any race of the national race meeting unless he has been registered by the Government.

2.　No person who comes under any of the following Items shall be registered:

Article 14.　No person shall enter his horse in any race of the national race meeting unless it has been registered by the Government.

Article 15.　Any person who wishes to enter a horse wearing his own color in a race of the national race meeting shall register the color with the Government.

Article 16.　No person other than the trainer or jockey who has obtained the licence of the Government as provided for by Ministerial Ordinance shall train or ride any horse for any race of the national race meeting.

Article 17.　With regard to the registration and licence as mentioned in the preceding four Articles, the Government may raise the registration fee of less than five thousand yen and licence fee of less than five hundred yen.

Article 18.　The Government may raise the special registration fee of less than ten thousand yen from owners who wish to enter their horses in the races of the national race meeting which is provided for by Ministerial Ordinance.

2.　The special registration fee raised in accordance with the provisions of the preceding paragraph shall be appropriated to a part of the prize for such races as mentioned in the preceding paragraph.

Article 19.　The number of the race tracks at which the local race meeting is to be held shall be no more than six in Hokkaido and no more than two in each prefecture.

Article 20.　The race meeting held by the prefecture shall not be held more than four times a year at each race track;provided that in case it can not be held four times a year at a race track under such an unavoidable circumstance as a natural calamity or others, the prefectural governor may, on obtaining the permission of the Minister of Agriculture and Forestry, hold it five times a year at a neighboring race track.

2.　The race meeting held by a designated city shall not be held more than twice a year at each designated city.

3.　The days of the race meeting in each term as mentioned in the preceding two paragraphs shall not exceed six days.

Article 21.　The prefecture or designated city shall raise the admission fee of between 5 yen and 50 yen from any visitor when the race meeting is held;provided that the prefectural governor or the mayor of the designated city may permit visitors to enter the race track free of charge within the limit of six hundred persons in each term.

Article 22.　The provisions of Arts.5 to 17 inclusive shall apply mutatis mutandis to the local horse racing;provided that in Arts.5, 8, 10 and 12, "Government" shall read "prefecture or designated city" ;in Art.9, "25 per cent" shall read "29 per cent" ;in Arts.13 to 16 inclusive, "Government" and "national horse racing" shall read "prefecture or an association of prefecture" and "local horse racing" respectively;in Art.16, "trainer or jockey" shall read "jockey" and in Art.17, "Government" shall read "prefecture or an association of prefecture."

Article 23.　The Minister of Agriculture and Forestry may issue an order to the prefecture concerned of suspension of local horse racing, in case the prefecture has held the local race meeting in contravention of this Law or any other order issued in pursuance of this Law.

2.　The prefectural governor may issue any order to the designated city concerned of suspension of the local horse racing upon obtaining the recognition of the Minister of Agriculture and Forestry, in case the designated city has held the local race meeting in contravention of this Law or any order issued in pursuance of this Law.

Article 24.　The Minister of Agriculture and Forestry may direct any necessary order for the purpose of maintaining the order at the national race track or securing fairness of the race of the meeting.

2.　Matters necessary for maintaining order at the local race track or securing fairness of race shall be provided for by Cabinet Order.

Article 25.　The Minister of Agriculture and Forestry and the prefectural governor may respectively make the prefecture and the designated city deliver any report concerning the opening, close, and account of the local race meeting and other matters which are deemed necessary, or inspect the document or book concerned.

2.　The prefectural governor shall submit to the Minister of Agriculture and Forestry the report concerning the report received in accordance with the provisions of the preceding paragraph or the result of inspection thereof.

Article 26.　The Board of Audit may, in case the Board deems it necessary to do so, audit the account and finance of the prefecture or the designated city with regard to the local horse racing.

2.　In case the audit as mentioned in the preceding paragraph is to be make, the Board of Audit shall notify the persons concerned thereof.

Article 27.　No matter what name he may assume, no person shall be allowed to do any act which evades the provisions of Art.1, Par.3.

Article 28.　Any student or minor shall be prohibited from buying the betting ticket.

Article 29.　The same as in the preceding Article shall also apply to any case which comes under any of the following Items:

Article 30.　Any person who comes under any of the following Items shall be liable to penal servitude not exceeding five years or a fine not exceeding one hundred thousand yen:

Article 31.　Any person who comes under any of the following Items shall be liable to penal servitude not exceeding three years or a fine not exceeding fifty thousand yen:

Article 32.　Any person may, in case he has violated the provisions of the preceding two Articles, be liable to both penal servitude and a fine in consideration of the circumstances.

Article 33.　Any person who comes under any of the following Items shall be liable to a fine not exceeding twenty thousand yen:

Article 34.　Any person who has contravened the provisions of Art.28 shall be liable to a fine not exceeding one thousand yen.