Japan’s lower house recently passed a resolution banning illegal online casinos and prohibiting ads promoting their services. The authorities have taken stern action following the alarming rise of offshore gambling platforms targeting Japanese consumers.
According to a recent report by a Tokyo-based sports organisation, corroborated by the National Police Agency, there has been a significant increase in cross-border gambling. Thus, prompting the lawmakers to initiate a coordinated regulatory effort to rein in illegal operators.
Key Points of the Story
- According to a May 15 report published by the Council for Sports Ecosystem Promotion, Japanese punters wagered approximately €39 billion on overseas gambling sites in 2024.
- The abundance of Japanese-language gambling sites and promotional content on social platforms was a major contributing factor behind the surge.
- The proposed bill will prohibit the opening and operation of online gambling sites in Japan and ban promotional content and guides directing consumers toward online betting sites.
Rise in the Online Gambling Trend
Japan has an estimated 3.4 million active gamblers, most of whom wager on offshore online casinos, although such platforms are banned in the country. The House of Representatives passed a bill targeting websites promoting online gambling content or guiding users to such platforms.
The bill passed with a majority of votes from both the ruling Democratic Party and the Constitutional Democratic Party of Japan, the main opposition. The step comes amid the rise of online gambling, including a series of prominent celebrities and athletes who got entangled in the trend.
A National Police Agency survey in March found that nearly 3.3 million Japanese citizens participated in some form of online gambling, despite an umbrella ban. The report further stated that proceeds from illegal online gambling exceed €7.65 annually. While offshore online casinos target consumers globally, they are legally prohibited from targeting Japanese consumers.
However, since most online casinos can be easily accessed from smartphones and computers via a Virtual Private Network (VPN), they are accessible to Japanese gamblers. The revised resolution amends the existing law and tackles gambling addiction by introducing a series of statutes banning online gambling and its promotion. The amendment will take effect before the current parliamentary session ends on June 22.
The Implications of Unregulated Online Gambling in Japan
According to the amended act, individuals found gambling online from within the country may face fines of up to €3,077. Repeat offenders could even face jail time of up to three years. Gambling in Japan is strictly limited to state-run lotteries and a few forms of race betting, including bicycles, boats, horses, and motorcycles.
The bill was drafted following thorough consultation with eight prominent parliamentary parties. Japan’s Internal Affairs and Communications Ministry has formed an expert panel to explore all avenues, including forcibly blocking access to online gambling platforms. The bill also mandates that local and federal governments conduct public awareness drives, informing citizens about the legal repercussions of online gambling.
Despite the government’s efforts, the legislation faces challenges from limited domestic regulatory measures and the vast number of online gambling sites targeting Japanese consumers. The government plans to intensify public awareness drives in the coming days to raise awareness about the dangers posed by illegal gambling sites.