Photo/IllutrationA man walks past the Tokyo 2020 Olympic logos in Tokyo on June 11. (AP file photo)

Tokyo 2020 organizers said on Friday they had underestimated Japanese demand for tickets after 3.22 million briefs were sold during the first domestic sales phase last month.

Organizing committee spokesman Masa Takaya said on Friday that 3.22 million tickets were sold to Japan residents in the first lottery. He said more than 90 percent of applicants bought the tickets that they were awarded.

The unexpected demand prompted organizers to re-evaluate their Japan-based sales going forward and there will now be a second ticket lottery in August for those who missed out the first time around.

Organizers say hundreds of thousands of tickets will be available in the second lottery.

The exact format of the second phase has yet to be decided but will only be open to those who failed to obtain tickets the first time around, when results were announced on June 20.

The window will close by Aug. 22, when the application process for Paralympics tickets is scheduled to begin.

“There was a massive amount of applications received in the first wave and this absolutely exceeded our expectations,” Tokyo 2020 spokesman Takaya said on Friday.

“So in that respect, we are pleased to see such huge excitement being built up amongst people across Japan.”

Organizers have also ditched plans to offer further unsold tickets on a first-come, first-served basis later in the autumn, as had been originally proposed.

There is now likely to be a third lottery phase instead, only open once again to Japan-based residents.

Those wishing to purchase tickets outside Japan must do so through country-specific Authorized Ticket Resellers.

Between 70-80 percent of all tickets have been reserved for domestic sale with the remainder allocated to international customers and sponsors.

“As far as we know, the reaction from the public to this second chance is being well received ... and by those who participated in the first wave,” added Takaya.

“So, we are right on track but we want to continue making our best effort.”

Organizers say that over 7.5 million people had registered for the Tokyo fan ID needed to make a ticket application.

Although the total number of tickets available has yet to be announced as many venue designs are still being worked on, organizers said in their bid for the 2020 Games that 7.8 million tickets would be made available.

Tokyo is a reversal from recent Olympics when tickets were unsold and many events were poorly attended. That won't be the case with 35 million people in Greater Tokyo looking to attend.

Tickets sales are projected to raise about $800 million for the organizing committee's operating budget of $5.6 billion. The largest source of income for the privately funded budget is a record-setting $3 billion paid by more than 60 local Japanese sponsors, all of whom will be looking for tickets.

The short supply is sure to drive scalping.

Japan passed a law last month that prohibits ticket scalping with a 1 million yen ($9,100) fine and a one-year jail term — or both.

However, the law has large loopholes and does not apply to tickets distributed for free or given away as gifts, or tickets without a purchaser's name. This applies to many tickets coming from the International Olympic Committee, the 206 national Olympic committees, or major sponsors.

The IOC was embarrassed three years ago in Rio de Janeiro when IOC member Patrick Hickey was arrested on charges of ticket scalping. He has denied any wrongdoing.

StubHub, an online ticket exchange company based in the United States, has handled tickets for previous Olympics. It is critical of the new Japanese scalping law, which might affect StubHub's ability to handle tickets this time.

"Unfortunately, the Japanese law is flawed in its attempt to artificially control the ticket marketplace, and fans will likely be negatively impacted," Jill Krimmel, general manager for sports for StubHub, told The Associated Press. "Instead, StubHub believes that a safe, transparent, and competitive marketplace best serves fans and the games."