The Japanese parliament cleared a bill prohibiting all forms of gambling promotions aimed at leading consumers to online casino sites. The decision comes amidst a rise in online gambling activity and advertisements featuring ex-athletes, influencers, and celebrities.
Key Notes of the Story
- The amended Basic Law on Measures against Gambling Addiction bans the creation and operation of online casinos and similar platforms within Japan and the promotion of all online gambling sites, including offshore platforms.
- The law is expected to be implemented within three months, and it places an umbrella ban on several forms of advertising, including banner ads, social media posts, and any form of content leading consumers to gambling websites.
- While the new law does not mandate penalties, it outlaws gambling promotions, empowering Internet Service Providers (ISPs) and social media platforms to remove illegal content more proactively.
Japan Tightens Grip on Gambling Regulations
Online gambling in Japan has been in the news recently due to a rise in activity at offshore gaming sites. The authorities discovered several local celebrities, social media influencers, and ex-athletes promoting overseas gambling websites, leading to player safety concerns.
While owning and operating online casinos is illegal in Japan, overseas operators continue to target Japanese consumers, leading the Japanese government to ban illegal online casinos through a resolution. The updated gambling legislation, passed by the Upper House of the Japanese Parliament, prohibits all forms of gambling promotion, including efforts to direct consumers toward overseas online casino sites, even if they have valid licences in their home countries.
The Basic Law on Measures against Gambling Addiction is expected to come into effect three months after the declaration, later this month. Apart from traditional campaigns such as banner ads and social media campaigns, the new law also prohibits affiliate marketing aimed at promoting gambling content.
Though the new law does not have clear criminal penalties, it criminalises all forms of gambling promotions. The National Police Agency (NPA) is confident about the step curbing players’ access to offshore gambling sites, improving consumer safety.
The Internet Hotline Centre, which monitors online content for the NPA, will henceforth classify content promoting gambling as “illegal information” and issue requests for takedown to the relevant authorities. The organisation plans to issue guidelines outlining the definition of illegal information before the law takes effect.
The Japanese National Police Agency (NPA) estimates that over 3.37 million Japanese citizens engaged in illegal gambling in 2024, with wagers exceeding €6.2 billion. Although most of these websites have valid gambling licences in established jurisdictions like Curaçao, Japanese law prohibits most forms of gambling, including online casinos.
NPA Ramping Up Efforts to Ban Overseas Gambling Platforms
The NPA, meanwhile, has also urged the government to restrict access to overseas gaming sites to stem the flow of Japanese gamers. The agency has reached out to licensing authorities like the Curaçao Gaming Control Board through the Foreign Ministry, requesting them to curtail services targeting Japanese consumers.
The agency requested licensing authorities to remove Japanese-language interfaces and issue strict warnings about the use from Japan being illegal. TThe NPA is also taking steps domestically to curb the rising trend of online gambling, particularly among younger generations, which has previously led to discussions in the Japanese parliament about banning gambling activities and advertisements.
The crackdown comes amidst a series of high-profile arrests associated with illegal casino gaming. The consensus is that widespread misinformation, such as gambling at overseas online casinos, is allowed, and casino ads featuring celebrities and influencers, fuelled a false sense of legality among Japanese consumers.
According to an NPA survey, just 40% of players were aware of the legal constraints of online gambling. Surveyors also found that awareness was particularly low among players in their 20s. In response, the NPA plans to carry out widespread awareness drives, broadcasting awareness videos in movie theatres, stadiums, and concert venues.
The NPA has reached out to talent agencies representing celebrities and athletes featured in casino ads, informing them about the legal repercussions of their actions and requesting their cooperation in combating the issue. The authorities plan to distribute 100,000 leaflets with the help of delivery partners.
While most consumers initially sign up for free casino games, a study reveals that over 75% of the players migrate to real-money wagers. Lawmakers are hoping that the new restrictions will reduce the visibility of overseas gambling sites, bringing down user traffic at these sites.
The authorities are also planning more aggressive strategies, like blocking offshore platforms. However, such actions violate the constitutional right to freedom of communication. The Communications Ministry has created an expert panel to debate the issue and weigh the pros and cons.