Japan is stepping up efforts to combat illegal online gambling as reports reveal millions of residents wager billions of yen on overseas sports betting sites and online casinos, activities currently prohibited under Japanese law. Recent data from a Tokyo-based sports organization and the National Police Agency highlight a rapidly expanding cross-border gambling market, prompting a coordinated political response to tighten regulations.

Explosive growth of illegal online betting in Japan:

According to a report by the nonprofit Council for Sports Ecosystem Promotion released on May 15, Japanese bettors placed an estimated ¥6.45 trillion (approximately $44 billion) in wagers last year on overseas sports gambling websites, despite such activity being illegal in Japan. Of this total, around ¥1 trillion was bet on domestic sporting events, including professional baseball, soccer, and basketball.

According to The Japan Times, the report reveals that ¥5.43 trillion was wagered on international sports via foreign betting platforms, with domestic sports attracting an additional ¥1.02 trillion. Baseball alone accounted for the largest share of domestic bets at ¥528.1 billion, followed by soccer at ¥333.4 billion. In stark contrast, legal sports lotteries in Japan generated only ¥133.6 billion in fiscal 2024, underscoring the massive scale of the unregulated market.

This surge has been partly fueled by the proliferation of Japanese-language gambling sites and targeted advertisements on social media platforms, contributing to low public awareness that such betting is illegal. A survey by the National Police Agency found that 3.37 million people have used online gambling sites, with 43.5% unaware of the activity’s illegality.

The ease of smartphone use and convenient payment methods, such as bank transfers and credit cards, have further increased accessibility to these illicit platforms. Law enforcement agencies have struggled to keep pace, with a record 279 arrests in 2024 related to online betting—a 160% increase from the previous year.

Political consensus on legislative action to prohibit online casinos:

In response to these developments, lawmakers from both the ruling Liberal Democratic Party and opposition groups have reached an agreement to introduce legislation aimed at tightening regulations on illegal online casinos during the current Diet session.

The proposed bill will explicitly prohibit the opening and operation of online casino platforms in Japan. It also targets advertising efforts, banning promotions and guidance directing users to casino websites via social media and other channels.

Drafted following consultations among eight political parties and parliamentary groups, the bill is expected to be submitted to the House of Representatives’ Committee on Cabinet as early as this month and is anticipated to pass within the session.

The Internal Affairs and Communications Ministry has convened an expert panel to explore additional deterrent measures, including forcibly blocking access to online casino sites. Although online casinos are legally operated in some foreign jurisdictions, Japan’s Penal Code prohibits their use within the country.

The bill also mandates central and local governments to conduct public awareness campaigns informing residents that online casinos are illegal. However, it does not include new penalty provisions, which raises questions about the potential effectiveness of enforcement.

Authorities face significant obstacles in policing cross-border online gambling, particularly given that many operators are based overseas. Japanese police plan to collaborate with international sports organizations and foreign counterparts to better address illegal betting and protect the integrity of sports against threats such as match-fixing and corruption.

Despite these efforts, challenges remain due to limited domestic regulatory measures and the vast reach of online gambling platforms. Public education initiatives are being intensified to enhance awareness, but the rapid expansion of the illegal market continues to pose a pressing social issue.