As Japan gears up to legalize casino construction in the country, there are a number of loose ends that are starting to be identified. One in particular revolves around tax obligations on winnings, and it’s possible that taxes owed will be geo-discriminatory.

Japanese regulators feel that profits generated from gambling should be considered “occasional income.” This would make the profits subject to tax regulations, and some indications are that citizens of countries such as China and India would be obligated to pay income tax on the winnings, while those of other countries, like South Korea and the US, would be off the hook for the taxes.

Japan currently has tax treaties with 123 states and regions. The train of thought is that foreign tourists gambling in Japan’s casinos would be held to the stipulations of those treaties. The National Tax Agency indicates that the country’s treaties with the US, South Korea, European countries and members of the Organization for Economic Cooperation and Development (OECD) provide provisions that put the tax onus on the visitor in his or her home country.

Other treaties, like those signed with India, China and Singapore, authorize Japan to collect taxes on casino winnings. These individuals would be required to adhere to Japanese tax laws and would be held to the same legal tax framework as Japanese citizens.