Japan has stepped up its fight against illegal online casinos with strict new measures aimed at limiting access to these unauthorised platforms. The government has stepped up controls on online payments, advertising, and affiliates of offshore gambling sites, while running awareness campaigns to inform the public of the risks associated with these practices. Despite these efforts, critics believe that legislative reform is needed to make these measures more effective.
Faced with the rise of unauthorised online gambling platforms, the Japanese government has unveiled a series of strict measures to curb this worrying phenomenon. The initiative is designed to protect citizens and preserve the integrity of the country’s sporting and cultural institutions.
Current state of legal gambling in Japan
Japan, while known for its strict gambling policies, allows certain types of legal betting under a very rigid framework. The gambling sector in Japan is mainly made up of three categories: horse racing, pachinko games and lotteries.
Horse racing, a mainstay of legal betting in Japan, is overseen by the Japan Racing Association (JRA) and is one of the country’s most popular and profitable events. Every year, millions of Japanese people bet on races held throughout the country, particularly at major competitions such as the Tokyo Yushun (also known as the Japanese Derby). The industry generates substantial tax revenues, but it is also strictly regulated, with restrictions on betting amounts and the types of bets allowed.
Pachinko, often described as a form of gambling that is a hybrid between a pinball machine and a slot machine, is one of the most popular pastimes in Japan. Although it is not officially classed as a gambling game because of the way it works, pachinko generates billions of yen every year. The game is distinguished by its mechanics: players exchange their winnings in coins for prizes or vouchers, which they can then exchange for cash at partner establishments. Although technically illegal, the practice is widely tolerated by the authorities, provided that operators comply with certain rules.
Lotteries in Japan are also legal and state-run. They are a popular form of gambling, often used to fund public projects. Draws are held on a regular basis, and Japanese people can buy tickets at authorised sales outlets. In addition to national lotteries, local lotteries and special draws are regularly organised. However, prizes are often considered relatively modest by international standards, which limits the scale of participation.
While Japan has a clearly defined legal framework for some gambling, it remains limited compared to other countries in terms of online betting options. Online casinos are illegal in Japan.
A government strategy to counter illegal gambling
Under the leadership of Prime Minister Shigeru Ishiba, the Japanese cabinet has approved an ambitious national strategy to curb the expansion of unregulated online gambling. The approach includes increased restrictions on third-party payment processors and affiliates promoting offshore gambling sites, signalling a firm commitment to enforcing the law.
Yoshitaka Ito, the minister in charge of policy to combat gambling addiction, stressed the urgency of the situation. According to data from the National Police Agency, around 3.37 million Japanese have accessed unauthorised foreign gambling platforms, including 1.97 million active users, collectively betting around 1.2 trillion yen (around €7.4 billion) a year.
Currently, under Japanese law, gambling via offshore operators is illegal and punishable by fines of up to 500,000 yen (around €3,075). Repeat offenders can face up to three years in prison.
Awareness campaigns and regulatory pressure
In addition to enforcing the law, the government plans to launch campaigns on social networks to inform the public that online gambling remains illegal in Japan. The authorities are also urging companies to withdraw advertisements for online casinos and to reconsider their promotional strategies.
These new measures reflect a broader effort to reduce gambling-related harm. Lawmakers are also considering restrictions on legal gambling, including potential limits on online betting for public sports such as horse and motorboat racing. A proposed ban on the use of credit cards for gambling is also under consideration.
Despite the government’s renewed focus, critics argue that without legislative updates, implementation will remain limited. Noriko Tanaka, head of an organisation supporting people suffering from gambling addiction, questioned the effectiveness of the plan. She noted the lack of legislative changes:
‘The government talks about tighter controls, but it is not clear how they will enforce these rules without new laws.’
Public figures implicated in gambling scandals
Earlier this year, Olympic table tennis medallist Koki Niwa was fined ¥100,000 (around €615) for betting on offshore sites. In addition, 14 professional baseball players from the Nippon Professional Baseball league were found guilty of similar activities.
The scandal has also spread to the world of entertainment. Tokyo police are currently investigating comedians affiliated with the Yoshimoto Kogyo talent agency for their alleged involvement in illegal online gambling.