The Japanese government has intensified its crackdown on illegal online gambling, calling for eight countries and regions to block access to their licensed online casino websites for Japanese residents. This move is in response to growing concerns about the illegal gambling market in Japan, especially after media reports revealed that several high-profile individuals, including professional athletes and celebrities, have used these overseas platforms.

New legislation aims to strengthen gambling regulations:

As reported by Kyodo News, Japan’s crackdown is part of its broader efforts to combat illegal gambling and protect citizens from the harms associated with unregulated online casinos. According to government sources, Japan has asked the operators of online casinos licensed in Canada, Costa Rica, Georgia, Malta, Anjouan Island (Comoros), Curacao, the Isle of Man, and Gibraltar to restrict Japanese users from accessing their sites. Despite these sites being legally operated in other jurisdictions, gambling with overseas-based platforms is illegal under Japanese law, and the government is determined to curb the growing problem.

Alongside these diplomatic efforts, Japan is also pushing for stronger domestic legislation to tackle illegal gambling. The country is preparing to introduce a bill that will officially prohibit the promotion, operation, and advertisement of online casinos. The proposed legislation will target both the operation of these websites and the use of referral links, such as those shared on social media, to guide Japanese users to foreign gambling platforms. The bill is expected to be passed by the Japanese parliament by the end of June 2025.

This bill will also focus on raising awareness among the public about the illegality of online casinos. According to a recent survey by Japan’s National Police Agency, an estimated 3.37 million people in the country have used illegal online gambling sites, spending about ¥1.24 trillion (approximately $8.6 billion) annually. Despite these alarming figures, many Japanese residents remain unaware that gambling on such platforms is prohibited by law.

Japan has actively engaged with the eight countries where many of the targeted online casinos are licensed. An analysis of 40 gambling sites in Japanese, conducted by Japanese authorities, revealed that 70% of these operators are registered in Curacao, a Dutch island territory in the Caribbean. Only two of the sites explicitly restricted access from Japan, while several others have been primarily targeted by Japanese players.

The Japanese government’s actions align with similar efforts by other countries, including Australia, which has raised concerns about the operations of Curacao-based gambling sites. The Japanese authorities are also focusing on targeting payment agents and promoters who advertise these services on social media platforms, further complicating enforcement efforts.

Challenges and enforcement difficulties:

While Japan’s legal system is cracking down on illegal gambling sites, the enforcement of these regulations presents significant challenges. The foreign operators are licensed in their respective countries, making it difficult for Japanese authorities to charge them directly under Japanese law. Instead, the focus has shifted to blocking traffic from Japan to these sites and penalizing payment agents and promoters involved in facilitating these activities.

Despite these challenges, the Japanese government remains determined to protect its citizens from the risks associated with unregulated online gambling. As part of this initiative, Japan plans to step up international cooperation with other nations to ensure that its anti-gambling laws are respected and enforced globally.

In parallel with these efforts to shut down illegal online casinos, Japan is also preparing for the launch of its first land-based integrated resort (IR), MGM Osaka, which will feature a legal casino. Scheduled to open in late 2030, the $9.4 billion project, developed by MGM Resorts International and Japan’s Orix Corporation, is seen as a key part of Japan’s strategy to boost tourism and regional economies. However, lawmakers are keen to prevent online gambling from undercutting the potential benefits of the upcoming casino, focusing on safeguarding citizens from the adverse effects of illegal gambling.

As Japan moves forward with its plans to tackle illegal online gambling, public education will play a key role. Authorities are preparing to launch awareness campaigns to inform citizens about the legal risks associated with online casinos and the importance of complying with the country’s gambling laws. These efforts aim to reduce the number of people unknowingly engaging with illegal sites, which remains a significant concern for regulators.