TOKYO -- The Tokyo District Court has issued a guilty verdict in Japan's first-ever case to be built concerning "scout back" payments, where hosts coerce women into sex work and receive a portion of their prostitution earnings.

A 28-year-old man who managed a host club in the Kabukicho district of Tokyo's Shinjuku Ward was found guilty of receiving criminal proceeds under Japan's organized crime law. This marks the first case of its kind nationwide.

At malicious host clubs -- where female customers are entertained by male "hosts" engaging in exploitative practices -- patrons are often pressured into incurring large debts through exorbitant spending on food and drinks. These debts are then used as leverage to compel them to take sex work to repay what they owe.

While hosts have previously been charged under the Employment Security Act for introducing women to carry out harmful jobs, this case marks the first time scout back payments have been recognized as criminal proceeds, which may help deter similar practices.

According to a Dec. 19, 2024, ruling, the host conspired with scouts from sex work establishments to introduce a female customer from his club to such a business in Beppu, Oita Prefecture. Unable to repay her debts, the woman engaged in illegal prostitution to earn money, and between March and May 2023, the host knowingly received a cut of her earnings totaling about 400,000 yen (about $2,570) as scout back payments. The Beppu sex business distributed a combined 15% of her earnings to the scout and the host.

The court proceedings exposed a system of exploitation, where hosts, scouts and sex businesses collaborated to take advantage of vulnerable women. The woman reportedly spent her prostitution income back at the host club, perpetuating a cycle of exploitation.

During the trial, the defendant admitted to introducing at least 10 female customers from his host club to sex work scouts.

The prosecution described the crime as "exploiting women for profit" and sought a sentence of two years and six months in prison, along with a 500,000-yen (approx. $3,200) fine. The court delivered exactly that, albeit suspended for four years. The ruling has been finalized.

In December 2024, a report by a National Police Agency expert panel also highlighted scout back payments and recommended their regulation as part of broader measures against exploitative host clubs.

(Japanese original by Akira Iida, Tokyo City News Department)