Japan Launches New Push Against Illegal Online Gambling

Join Our Telegram channel to stay up to date on breaking news coverage

Japan has launched its most comprehensive and aggressive campaign against illegal online gambling, deploying a sophisticated multi-front strategy that combines sweeping legislative reforms, unprecedented international diplomatic pressure, and enhanced criminal enforcement to combat what authorities describe as a ¥6.75 trillion ($45 billion) shadow economy threatening social stability and undermining the nation’s carefully regulated gaming sector.

This escalating offensive comes as Japan prepares to open its first legal integrated resort with MGM Osaka in 2030, creating additional urgency for authorities to establish clear boundaries between legal and illegal gambling activities. The government’s unprecedented response reflects growing alarm over the massive scale of illegal gambling participation among Japanese citizens and its associated social consequences.

Key Takeaways

Legislative Milestone: Japan’s House of Representatives passed landmark legislation banning online casino operations and advertising, with penalties up to ¥500,000 ($3,500) for users and three years imprisonment for repeat offenders.
International Diplomacy: Japan formally requested eight countries and jurisdictions to block Japanese access to their licensed online gambling platforms, targeting 70% of Japanese-language casino sites.
Record Prosecution: Authorities arrested Makoto Chomabayashi for wagering ¥28 billion ($194 million), representing the largest individual online gambling prosecution in Japanese history.
Massive Market Scale: 3.37 million Japanese citizens engage with online casinos annually, spending ¥1.24 trillion ($8.7 billion) on illegal platforms.
Technology Enhancement: Police deployed cryptocurrency tracking tools and are exploring website blocking capabilities for the first time in gambling enforcement.
Addiction Crisis: The Society Concerned about Gambling Addiction reports an 11-fold increase in consultation requests between 2019 and 2024.
Criminal Organization Charges: Organized crime statutes applied to payment processors facilitating offshore gambling for the first time.

Parliamentary Action: Historic Anti-Gambling Legislation

Japan’s House of Representatives passed landmark legislation in early June 2025 that fundamentally reshapes the country’s approach to online gambling enforcement. The bill, which revises the Basic Law on Countermeasures against Gambling Addiction, gained overwhelming bipartisan support from both the ruling Liberal Democratic Party and the main opposition Constitutional Democratic Party of Japan.

Comprehensive Legislative Framework

The new law introduces several groundbreaking measures that extend far beyond previous enforcement efforts:

Complete Operational Ban: The legislation establishes an absolute prohibition on opening and operating online casino platforms within Japan, eliminating any legal ambiguity that previously existed around offshore platform operations.
Advertising Prohibition: A comprehensive ban covers all forms of marketing, social media promotion, and user guidance to casino sites, including affiliate marketing schemes that have historically driven Japanese participation in offshore platforms.
Platform Accountability: Social media companies and online service providers must actively remove illegal gambling content and prevent its circulation, creating corporate responsibility for enforcement support.
Enhanced Penalties: Individual users face fines up to ¥500,000 ($3,500) with potential imprisonment up to three years for repeat offenders, representing a significant escalation in personal accountability for gambling participation.

The legislation is expected to receive final approval from the House of Councillors before the current parliamentary session ends on June 22, 2025, providing the legal foundation for expanded enforcement activities.

Enforcement Authority Expansion

Beyond criminalizing specific activities, the legislation grants authorities enhanced powers to pursue comprehensive enforcement:

Cross-border investigation capabilities for tracking international gambling transactions
Financial institution cooperation requirements for identifying and blocking gambling-related payments
Technology company compliance mandates for content removal and access prevention
International cooperation frameworks for pursuing offshore operators targeting Japanese users

These expanded authorities reflect lessons learned from previous enforcement efforts that were hampered by jurisdictional limitations and technological challenges.

International Diplomatic Offensive

In an unprecedented move demonstrating the seriousness of Japan’s campaign, the government has formally requested eight countries and regions to block Japanese resident access to their licensed online casino platforms. This diplomatic initiative targets jurisdictions hosting the majority of Japanese-language gambling sites that specifically cater to Japanese players.

Target Jurisdictions

Japan’s diplomatic requests focus on key offshore gambling licensing centers:

Curaçao (Netherlands): Hosts approximately 70% of Japanese-language casino sites
Malta: Major European licensing jurisdiction with several Japan-focused operators
Costa Rica: Popular licensing destination for Asian-targeted gambling sites
Canada: Provincial licensing authorities hosting operators serving Japanese players
Georgia: Emerging licensing jurisdiction with growing Japanese market presence
Anjouan Island (Comoros): Lower-tier licensing center with minimal oversight
Isle of Man (UK): Traditional offshore licensing jurisdiction
Gibraltar (UK): European Union access point for gambling operators

Analysis of Japanese-Targeted Operations

Government analysis of 40 Japanese-language casino sites revealed the sophisticated targeting of Japanese players by offshore operators. Only two sites clearly prohibited access from Japan, while six sites relied entirely on Japanese visitors for their business models. This analysis demonstrates the deliberate nature of these offshore operations in targeting Japanese consumers despite domestic gambling prohibitions.

The government plans to renew these diplomatic requests once the new legislation is formally enacted, providing stronger legal backing for international cooperation efforts. This approach represents a significant departure from Japan’s traditionally non-confrontational diplomatic style, reflecting the perceived severity of the gambling crisis.

International Cooperation Challenges

While Japan’s diplomatic initiative is unprecedented in scope, success depends on voluntary cooperation from foreign jurisdictions that benefit financially from Japanese gambling activity. Many offshore licensing authorities generate substantial revenue from licensing fees and taxes paid by operators serving Japanese players, creating potential conflicts between Japan’s enforcement objectives and foreign economic interests.

However, several jurisdictions have begun responding positively to Japan’s requests, recognizing the importance of maintaining cooperative relationships with one of Asia’s largest economies. Malta and the Isle of Man have indicated willingness to work with Japanese authorities on implementing access restrictions for Japanese residents.

Escalating Criminal Enforcement

Japanese authorities have significantly intensified criminal enforcement activities, targeting both individual gamblers and the organized networks that facilitate offshore gambling access for Japanese residents.

Record-Breaking Individual Prosecution

The arrest of Makoto Chomabayashi in May 2025 represents a watershed moment in Japanese gambling enforcement. The 38-year-old company employee stands accused of wagering ¥28 billion ($194 million) through the cryptocurrency-friendly platform Stake between August 2022 and April 2025, making this the largest individual online gambling prosecution in Japanese history.

Chomabayashi operated under the alias “Meikyo Shisui” (meaning “clear and serene mind”) on social media platform X, where he regularly posted winning screenshots to attract over 100 users to the platform. Through this affiliate activity, he earned ¥7 million ($48,600) in commissions while simultaneously gambling massive amounts himself.

Despite the enormous wagering volume, investigators estimate Chomabayashi lost approximately ¥40 million ($277,000) during the period in question, highlighting the destructive nature of compulsive gambling behavior even at extreme scales. His case has become a symbol of the addiction crisis driving Japan’s enforcement campaign.

Organized Crime Prosecutions

Beyond individual cases, Japanese authorities are pursuing organized crime charges against the sophisticated networks that facilitate offshore gambling access. The Tokyo Metropolitan Police re-arrested payments executive Yoshiaki Maeda on charges of concealing criminal proceeds, marking the first time organized crime statutes have been applied to gambling-related payment processing operations.

The Sumo Pay platform that Maeda helped operate allegedly processed ¥20 billion ($135 million) in gambling transactions for 42,000 customers, generating ¥2.1 billion ($14.1 million) in commissions for the organization. This scale of operation demonstrates the sophisticated criminal infrastructure supporting illegal gambling access for Japanese residents.

These organized crime prosecutions represent a strategic shift in Japanese enforcement, recognizing that effective action requires targeting the facilitating infrastructure rather than simply pursuing individual gamblers.

Systematic Cryptocurrency Enforcement

Japanese police have deployed sophisticated cryptocurrency tracking tools for the first time in gambling enforcement operations, enabling authorities to identify participants in offshore gambling schemes with unprecedented accuracy. These tools have already enabled authorities to identify and refer 57 players to prosecutors, with approximately 130 additional cases under investigation across 24 prefectures.

Popular offshore platforms targeted in these operations include BitCasino, Sportsbet.io, and Vera & John, demonstrating the breadth of illegal gambling activity among Japanese residents and the sophisticated nature of enforcement responses.

Technological Enforcement Innovation

Japan’s campaign incorporates cutting-edge technological enforcement tools that represent significant advances in the country’s capability to combat cross-border digital crimes.

Advanced Cryptocurrency Tracking

The deployment of cryptocurrency tracking technology marks a major evolution in Japanese law enforcement capabilities. These systems enable authorities to:

Trace transaction flows between Japanese residents and offshore gambling platforms
Identify wallet addresses associated with specific gambling sites
Link cryptocurrency transactions to individual Japanese bank accounts and identities
Map networks of affiliates and facilitators promoting offshore gambling

This technological capability has proven particularly effective against cryptocurrency-focused gambling platforms that previously operated with near-impunity due to the perceived anonymity of digital asset transactions.

Website Access Control Initiatives

The Internal Affairs & Communications Ministry has established an expert panel to explore comprehensive technological deterrent strategies, including website access blocking capabilities. This represents a significant expansion of Japan’s technical enforcement capabilities beyond traditional payment system interventions.

Potential technological measures under consideration include:

DNS-level blocking of gambling site domains at the internet service provider level
Deep packet inspection to identify and block gambling-related traffic
IP address blocking for known gambling platform servers
VPN detection and blocking to prevent circumvention of access restrictions

These technological approaches face significant implementation challenges, including the global nature of internet infrastructure and the availability of circumvention tools. However, their development demonstrates Japan’s commitment to employing all available technological resources in its anti-gambling campaign.

Scale of the Crisis: A National Emergency

Recent government surveys reveal the enormous scope of illegal gambling activity that has prompted Japan’s unprecedented response. The scale of participation and financial impact has reached levels that authorities consider a threat to social stability and economic security.

Market Participation and Financial Impact

Government data reveals staggering levels of Japanese participation in illegal offshore gambling:

3.37 million Japanese citizens engage with online casinos annually, representing approximately 2.7% of the adult population
¥1.24 trillion ($8.7 billion) spent on illegal platforms each year, exceeding the GDP of many small countries
¥6.75 trillion ($45 billion) wagered on overseas betting sites in 2024 alone, demonstrating the massive volume of gambling activity
8.9 million Japanese estimated to be active on offshore platforms when including sports betting and other gambling categories

These figures dwarf Japan’s legal gambling sectors, with illegal online betting exceeding the combined revenue of pachinko (¥4.2 trillion) and state lotteries (¥1.8 trillion). This comparison highlights how offshore gambling has become the dominant form of gambling activity among Japanese residents despite its illegal status.

Demographic and Social Analysis

Analysis of Japanese offshore gambling participation reveals concerning demographic patterns:

Average age of participants: 35-45 years, representing prime working-age population
Income distribution: Disproportionately affects middle and upper-middle-class Japanese workers
Gender breakdown: 70% male, 30% female, with female participation growing rapidly
Geographic concentration: Highest participation rates in major urban centers including Tokyo, Osaka, and Nagoya

The demographic profile suggests that offshore gambling addiction is affecting Japan’s most economically productive population segments, amplifying concerns about broader economic and social impacts.

Social Impact and Addiction Crisis

The human cost of Japan’s offshore gambling boom has become a major driver of the government’s enforcement campaign, with addiction specialists reporting unprecedented caseloads and increasingly severe consequences for affected individuals and families.

Addiction Treatment Crisis

The Society Concerned about Gambling Addiction in Tokyo reports alarming escalation in problem gambling cases that has overwhelmed existing treatment resources:

11-fold increase in consultation requests between 2019 and 2024, far exceeding the capacity of existing treatment programs
91 cases involving online casino addiction reported in 2024 alone, compared to single-digit annual cases in previous years
30% of surveyed families report gambling-addicted members engaging in criminal activity to fund their gambling
Average debt among those seeking help reaches ¥8.9 million ($59,300), representing multiple years of average Japanese income

Criminal Activity and Social Breakdown

The addiction crisis has generated significant secondary criminal activity as problem gamblers resort to illegal means to fund their gambling:

Embezzlement cases involving gambling-addicted employees stealing from employers
Domestic violence incidents linked to gambling-related financial stress
Youth exploitation cases where adults manipulate minors to access funds or credit
Organized fraud schemes targeting elderly relatives of gambling addicts

One documented case involved a former high school student whose gambling addiction led to extorting ¥10 million ($64,000) from his mother before his arrest for robbery. Such cases have become increasingly common, demonstrating how offshore gambling addiction is driving broader social breakdown.

Family and Economic Impact

The broader social impact extends far beyond individual gamblers to affect families and communities:

Family bankruptcy rates have increased significantly in areas with high offshore gambling participation
Divorce rates show correlation with gambling addiction patterns in affected communities
Child welfare concerns as gambling-addicted parents neglect family responsibilities
Workplace productivity losses estimated in the billions of yen annually

These social costs have become a major political concern, driving the bipartisan support for aggressive enforcement measures that might otherwise face more significant opposition.

Industry Context: Legal Gaming Development

Japan’s crackdown on illegal gambling occurs as the country prepares to launch its first legal integrated resort, creating additional complexity and urgency around establishing clear boundaries between legal and illegal gambling activities.

MGM Osaka Development

MGM Osaka, a ¥1.27 trillion ($8.9 billion) integrated resort project, broke ground in April 2025 and represents Japan’s first foray into legal casino operations under the 2018 Integrated Resort (IR) law. The resort is scheduled to open in fall 2030 and will feature:

World-class casino facilities offering table games and slot machines to both tourists and Japanese residents
Luxury hotel accommodations with over 2,500 rooms across multiple brands
Convention and meeting facilities designed to attract international business tourism
Entertainment venues including theaters, shopping centers, and dining facilities
Cultural attractions showcasing Japanese heritage and traditions

The development of legal gambling options creates both opportunities and challenges for Japan’s anti-illegal gambling campaign. While legal alternatives may reduce some demand for offshore gambling, they also raise concerns about gambling normalization and potential increases in overall gambling participation.

Regulatory Framework for Legal Gaming

The IR law permits up to three integrated resorts nationwide and establishes strict regulatory oversight designed to prevent the social problems associated with illegal gambling:

Entry limits for Japanese residents, including fees and frequency restrictions
Responsible gambling measures including mandatory self-exclusion programs and spending limits
Anti-money laundering requirements exceeding international standards
Social impact monitoring to assess and mitigate negative community effects

This carefully regulated approach contrasts sharply with the unregulated nature of offshore gambling platforms, providing authorities with a framework for channeling gambling demand into controlled, supervised environments.

Legal Framework and Enforcement Challenges

Japan’s anti-gambling campaign operates within a complex legal framework that traces back over a century while adapting to modern technological realities and international criminal networks.

Historical Legal Foundation

Japan’s gambling prohibitions are rooted in the 1907 Penal Code, which established comprehensive gambling prohibitions while creating specific exceptions for state-sanctioned activities including horse racing, bicycle racing, boat racing, motorcycle racing, and lotteries. This historical framework has required extensive interpretation and modification to address modern offshore gambling challenges.

The legal framework creates several categories of gambling activity:

Explicitly legal: State-operated lotteries and public sports betting on approved competitions
Regulated quasi-legal: Pachinko and similar games that technically avoid gambling definitions through complex prize exchange systems
Clearly illegal: Private gambling operations and unauthorized betting activities
Newly criminalized: Online gambling participation and facilitation under the 2025 legislative reforms

Implementation Challenges

Despite comprehensive legislative coverage, practical enforcement faces significant challenges:

Jurisdictional Limitations: Many offshore gambling platforms operate from jurisdictions with limited cooperation agreements with Japan, complicating extradition and asset recovery efforts.

Technological Sophistication: Offshore operators employ VPNs, cryptocurrency, and other privacy technologies specifically designed to evade detection and enforcement.

Scale of Participation: With millions of Japanese citizens engaged in illegal gambling, authorities must prioritize enforcement efforts while maintaining public support for the campaign.

International Legal Complexity: Different legal standards across jurisdictions create opportunities for operators to exploit regulatory gaps and forum shopping.

The absence of specific penalty provisions for many new restrictions in the 2025 legislation has raised questions about enforcement effectiveness. Critics note that while the law criminalizes various forms of promotion and facilitation, practical enforcement may remain limited without accompanying penalties for non-compliance by international platforms.

International Implications and Regional Impact

Japan’s comprehensive anti-gambling campaign carries significant implications for regional gambling markets and international cooperation in combating cross-border gambling operations.

Regional Market Effects

Japan’s enforcement actions are already creating ripple effects across Asian gambling markets:

Increased enforcement pressure in South Korea and Taiwan as authorities observe Japan’s comprehensive approach
Operator geographic diversification as platforms serving Japanese players seek alternative markets
Regulatory coordination discussions among Asian governments considering similar measures
Technology sharing initiatives for cryptocurrency tracking and website blocking capabilities

International Cooperation Precedents

Japan’s diplomatic requests to foreign jurisdictions establish important precedents for international cooperation in gambling enforcement:

Bilateral cooperation agreements being developed with key offshore licensing jurisdictions
Information sharing protocols for tracking cross-border gambling transactions
Joint enforcement operations targeting international gambling networks
Regulatory harmonization discussions to close enforcement gaps between jurisdictions

These cooperation efforts may influence global approaches to regulating cross-border gambling operations and establish new standards for international enforcement cooperation.

Future Outlook and Enforcement Evolution

As Japan’s anti-gambling campaign continues to develop, several trends and challenges will likely shape its long-term effectiveness and evolution.

Technology Arms Race

The campaign reflects an ongoing technological competition between enforcement authorities and gambling operators:

Enhanced tracking capabilities using artificial intelligence and machine learning for pattern recognition
Blockchain analysis tools for comprehensive cryptocurrency transaction monitoring
Network analysis systems for mapping gambling facilitation networks
Behavioral analytics for identifying potential gambling addiction patterns

Simultaneously, offshore operators continue developing countermeasures including advanced privacy technologies, decentralized platforms, and cryptocurrency mixing services designed to evade detection.

Legislative Evolution

Japan’s legal framework will likely continue evolving to address new challenges and close enforcement gaps:

Enhanced international cooperation provisions for bilateral enforcement agreements
Technology company accountability measures expanding platform responsibilities for content control
Financial institution compliance requirements for enhanced transaction monitoring
Individual accountability enhancements including more severe penalties for repeat offenders

Social Policy Integration

The enforcement campaign is increasingly integrated with broader social policy objectives:

Addiction treatment expansion to address the growing caseload of problem gamblers
Educational initiatives to raise awareness about gambling risks and legal alternatives
Family support programs for those affected by gambling addiction
Economic impact mitigation for communities severely affected by illegal gambling

Conclusion: A Defining Moment for Japanese Society

Japan’s unprecedented offensive against illegal online gambling represents more than a law enforcement campaign—it constitutes a comprehensive societal response to what authorities view as an existential threat to social stability and economic security. With over 3 million citizens engaged in illegal gambling activities involving tens of billions of dollars annually, the stakes extend far beyond regulatory compliance to encompass fundamental questions about Japan’s social fabric and economic future.

The multi-pronged strategy combining legislative reform, international diplomacy, criminal enforcement, and technological innovation demonstrates Japan’s recognition that traditional enforcement approaches are inadequate for addressing the scale and sophistication of modern offshore gambling operations. The campaign’s success or failure will likely influence regulatory approaches across Asia and establish important precedents for international cooperation in combating cross-border digital crimes.

As MGM Osaka prepares to launch Japan’s first legal integrated resort in 2030, the government’s ability to channel gambling demand into regulated markets while suppressing illegal alternatives will serve as a crucial test of its regulatory framework. The contrast between carefully regulated legal gambling and the current uncontrolled offshore gambling ecosystem highlights the stakes involved in this enforcement campaign.

For the millions of Japanese citizens currently engaged in illegal offshore gambling, the campaign represents both increased enforcement risk and potential pathways toward legal, regulated gambling alternatives. The ultimate measure of success will be not merely the reduction of illegal gambling activity, but the creation of a sustainable framework that addresses underlying demand while protecting vulnerable individuals and maintaining social stability.

The coming years will determine whether Japan’s comprehensive approach can effectively combat a ¥45 billion illegal gambling economy or whether the technological sophistication and international scope of offshore gambling operations will continue to challenge traditional enforcement models. The global gambling industry will be watching closely as Japan’s campaign unfolds, recognizing that its success or failure may reshape international approaches to gambling regulation and enforcement for decades to come.

References

Join Our Telegram channel to stay up to date on breaking news coverage

Japan Launches New Push Against Illegal Online Gambling

Key Takeaways