On May 29, 2026, three individuals, including a Filipino national, were arrested in Kariya City, Aichi Prefecture, for operating a Filipino pub without the required entertainment business license. This case is particularly egregious, as the business operated illegally for six and a half years and generated approximately 200 million yen in revenue.
This incident serves as a critical reminder for business owners and HR managers who employ foreign nationals, as well as foreign residents in Japan, about the relationship between the Entertainment Business Act and immigration status. This article provides a comprehensive explanation of these important legal matters.
- 1. Overview of the Case
- 2. What is the Entertainment Business Act?
- 3. Requirements for Foreign Nationals to Work in Entertainment Businesses
- 4. Risks of Illegal Employment
- 5. Measures Companies Should Take
- 6. Advice for Foreign Residents in Japan
- 7. Support Provided by Administrative Scriveners
- 8. Conclusion
1. Overview of the Case
Three individuals involved in operating the Filipino pub “Destiny” in Aio-cho, Kariya City, Aichi Prefecture, were arrested on suspicion of violating the Entertainment Business Act.
The charges include:
- Operating without an entertainment business license
- Having female employees provide customer entertainment services
- Operating in an area where entertainment businesses are prohibited under Aichi Prefecture ordinances
- Continuing operations despite numerous reports of illegal activities received from November 2025
The establishment operated for six and a half years and generated approximately 200 million yen in revenue.
Reference article:
https://news.yahoo.co.jp/articles/67bf0bcb7fdc87475d13890ac18082b0da1e7a9d
2. What is the Entertainment Business Act?
Definition of Entertainment Business
“Entertainment business” (Fūzoku eigyō) refers to business operations regulated under the Act on Control and Improvement of Amusement Business, etc. (commonly known as the Fūeihō or Entertainment Business Act). The following types of businesses fall under this category:
- Cabarets and host clubs
- Entertainment-oriented restaurants including Filipino pubs
- Pachinko parlors and game centers
- Mahjong parlors and karaoke establishments (when entertainment services are provided)
Licensing Requirement
Operating any of these businesses requires obtaining a license from the prefectural Public Safety Commission. Operating without a license constitutes a violation of the Entertainment Business Act and is subject to criminal penalties.
Prohibited Operating Areas
Furthermore, prefectural ordinances designate certain areas where entertainment businesses are prohibited from operating, such as areas near schools, hospitals, and residential neighborhoods. In the Kariya City case, operating in a prohibited zone was a major issue.
3. Requirements for Foreign Nationals to Work in Entertainment Businesses
This is an extremely important point for foreign residents and employers.
Only “Status-Based Residence Statuses” Are Permitted
Foreign nationals who can work in entertainment businesses are limited to those holding the following “status-based residence statuses” (mibunkei zairyū shikaku):
- Spouse or Child of Japanese National
- Foreign nationals married to Japanese citizens
- Biological or adopted children of Japanese nationals
- Permanent Resident
- Foreign nationals who have obtained permanent residence permission
- Long-Term Resident
- Nikkeijin (people of Japanese descent), recognized refugees, etc.
These residence statuses carry no employment restrictions, allowing holders to work in entertainment businesses.
Permission to Engage in Activities Other Than Those Permitted is NOT Sufficient
Foreign nationals holding “Permission to Engage in Activities Other Than Those Permitted Under the Status of Residence Previously Granted” (commonly called shikaku-gai katsudō kyoka), such as international students or dependents of workers, are absolutely prohibited from working in entertainment-related establishments.
Even if the part-time work is within the permitted 28 hours per week, employment in entertainment businesses is strictly forbidden.
Pachinko Parlors and Game Centers Are Also Covered
A commonly overlooked fact is that pachinko parlors and game centers are also regulated under the Entertainment Business Act.
Because these establishments are classified as entertainment businesses, foreign nationals with permission to engage in activities other than those permitted cannot work there as part-time employees. If international students casually take part-time jobs at pachinko parlors, they will be engaging in illegal employment and risk having their residence status revoked.
4. Risks of Illegal Employment
Risks for Foreign Nationals
If illegal employment is discovered, foreign nationals face the following risks:
- Revocation of residence status
- Deportation (forced repatriation)
- Denial of re-entry
- Fines or imprisonment
Once deported, foreign nationals are generally prohibited from re-entering Japan for at least five years.
Risks for Employers
Employers also face serious legal consequences:
- Crime of promoting illegal employment (imprisonment of up to 3 years or fine of up to 3 million yen)
- Suspension or revocation of entertainment business license
- Loss of corporate reputation and social credibility
- Deterioration of relationships with business partners
“I didn’t know” is not an acceptable excuse. Employers have a legal obligation to verify foreign employees’ residence cards and confirm whether they are permitted to work in the specific industry.
5. Measures Companies Should Take
Verify Residence Cards at the Time of Hiring
When hiring foreign nationals, always verify their residence card and check the following:
- Type of residence status
- Period of stay expiration date
- Presence or absence of employment restrictions
Examine Permissible Work Activities
The permissible work activities vary depending on the residence status. It is essential to understand that only status-based residence statuses allow employment in entertainment-related industries.
Conduct Regular Compliance Checks
It is important to verify not only at the time of hiring but also to regularly confirm whether residence periods have been renewed or residence statuses have changed.
Consult with Specialists
If there is any uncertainty, we recommend consulting with specialists such as administrative scriveners (gyōsei shoshi) or attorneys.
6. Advice for Foreign Residents in Japan
Always Verify Your Workplace Industry
International students and dependents should always verify whether the establishment is classified as an entertainment business before starting part-time work.
- Restaurants providing entertainment services
- Pachinko parlors
- Game centers
- Cabarets and host clubs
These industries are off-limits for those with permission to engage in activities other than those permitted.
Understand the Contents of Your Residence Card
It is crucial to accurately understand what you can and cannot do under your residence status. If anything is unclear, consult with an administrative scrivener or immigration office.
Understand the Risks of Illegal Employment
Engaging in illegal employment with a casual attitude—thinking “just a little is okay” or “I won’t get caught”—can result in losing your residence status and instantly destroying your life in Japan.
7. Support Provided by Administrative Scriveners
As specialists in residence status applications, administrative scriveners provide the following support:
Application and Renewal of Residence Status
- Obtaining work visas
- Application for extension of period of stay
- Application for change of residence status
Corporate Foreign Employment Compliance
- Verification of permissible residence statuses for employment
- Review of employment contracts
- Regular compliance training
Individual Consultations
- “Can I work in this industry?”
- “I want to change my residence status.”
- “I want to bring my family to Japan.”
We respond to all types of inquiries.
8. Conclusion
The unauthorized Filipino pub operation case in Kariya City demonstrates the serious consequences that can result from a lack of understanding of the Entertainment Business Act and residence status regulations.
For Business Owners and HR Managers:
Employing foreign nationals entails legal responsibilities and risks. It is essential to properly verify residence statuses and establish a compliance system.
For Foreign Residents in Japan:
Accurately understanding what you are permitted to do under your residence status and avoiding illegal employment is the key to protecting your stable life in Japan.
If you have any concerns or questions, please consult with a specialist. Let us work together to create a lawful and secure employment environment.
Reference article:
https://news.yahoo.co.jp/articles/67bf0bcb7fdc87475d13890ac18082b0da1e7a9d
Contact Us
For inquiries regarding residence status and visa applications, please feel free to contact our office.
