As illegal gambling surges in Japan, the government has proposed a new bill to block this alarming trend. New online casino regulations are expected to be discussed during the current Diet session, after an agreement between the ruling and opposition parties. Reports point to an alarming rate of illegal betting operations, particularly on baseball, and recent events corroborate the findings.
Key Points of the Story
- The bill proposes a total ban on opening and operating online casinos, advertisements promoting casino sites, and efforts to guide consumers to online gambling via social media or other platforms.
- Local and federal governments will be required to conduct awareness drives to inform the public that online gambling is illegal.
- The chairperson of the House of Representatives’ Committee will floor the bill in the parliament (Diet) later this month. The law is expected to come into effect by the end of this Diet session.
Bill Gets Unanimous Support from the Government and the Opposition
A working-level consultation was held to discuss the need for gambling prohibition. All parties within the Diet made a unanimous decision on Thursday to amend the existing online gambling regulations in Japan by the end of the current session. Important provisions of the bill include a blanket ban on opening and operating online casinos.
The chairman of the House of Representatives’ Committee on Cabinet is expected to present the bill, and the law could be passed by the end of the current Diet session. Apart from a complete ban on online casino operations, the bill proposes to ban all forms of gambling advertisements, including on social media and other platforms.
The government aims to revise existing statutes to remove loopholes and define these acts as unlawful. The bill will also empower media operators and other communication providers to remove gambling-related ads at the behest of law enforcement agencies.
Additionally, federal and local governments must educate the masses about the legality of online gambling through public campaigns. However, the lack of penalties will make it difficult for law enforcement officials to convince people to stay away from online gambling sites.
Authorities Concerned by the Unchecked Rise of Online Gambling
Thursday’s consultation was a full house with representatives from eight parties voicing their opinion. The revised bill, proposed by LDP, CDPJ, and Komeito, is currently being evaluated internally by the Senate. A decision is expected to be made by the end of the month.
The Japanese Ministry of Internal Affairs and Communications had convened an expert panel to evaluate deterrent measures last month. The panel is currently discussing practical methods for blocking online casino ads via traditional and modern channels. While there are no provisions banning Japanese consumers from gambling on platforms hosted offshore, online gambling sites are barred from being hosted in Japan.
But that has not stopped unlicensed gambling platforms from operating within the borders. According to the Japanese National Police Agency’s 2024 whitepaper, the number of Japanese people accessing overseas online casino sites has drastically increased in recent years. A survey conducted by the agency in March, on the other hand, indicates that over 3.37 million players gamble annually in Japan, and the total revenue exceeds ¥1.2 trillion (€6.2B) every calendar year.
Demographic breakdowns reveal that 31% of Japanese gamblers are in their 20s, and 27% are in their 30s. Most players are unaware that online gambling is illegal in Japan. However, the lack of strict countermeasures is the leading cause behind the government’s failure to rein in illegal operators. The number of users in the Japanese casinos and casino games market is expected to amount to 721.0 million by 2029, highlighting the growing demand for online gambling platforms, which makes regulatory challenges even more urgent.
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