Japan is taking decisive action against illegal online gambling as addiction rates soar to unprecedented levels. On March 21, 2025, Prime Minister Shigeru Ishiba’s Cabinet approved a comprehensive strategy to address the growing crisis, implementing stronger measures against operators and raising public awareness about the dangers and illegality of online casino gambling.
Japan’s Escalating Online Gambling Problem
Despite strict gambling prohibitions, Japan has witnessed an alarming surge in illegal online gambling activities. The National Police Agency (NPA) recently estimated that approximately 3.37 million Japanese residents have accessed offshore gambling platforms, with 1.97 million active users collectively wagering around ¥1.2 trillion ($8.07 billion) annually. This represents a massive underground economy operating contrary to Japanese law.
The problem has been growing steadily in recent years. In 2024, the NPA recorded 162 online casino players and 117 dealers—the highest figures since the agency began tracking these statistics in 2018. Although these numbers represent only those caught by authorities, experts suggest the actual number of players is significantly higher.
A survey conducted by the Tokyo-based International Casino Institute found that approximately 2.8% of 6,000 surveyed Japanese citizens admitted to gambling on online casinos within the past year. Further research by the Yomiuri Shimbun revealed that 30 popular online casinos offering Japanese-language services were accessed about 84 million times from Japan in the past year, with over 70% of these visits originating from mobile devices.
Yoshitaka Ito, the minister responsible for tackling gambling addiction, expressed serious concern about this trend during a news conference following the Cabinet meeting: “There are strong indications the number of people accessing online casino sites is increasing, leading to the accompanying problem of addiction”.
The Government’s Multi-Faceted Response
The newly approved strategy targets several aspects of the online gambling ecosystem. A primary focus is disrupting the financial and promotional infrastructure supporting illegal operations. This includes strengthening crackdowns on payment collection agencies that process transactions for gambling sites and targeting “affiliates”—individuals or companies who earn commissions by referring players to online casinos.
Beyond enforcement, the plan emphasizes raising public awareness about the illegality of online gambling. Businesses will be encouraged to prohibit online casino advertisements and promotional content on their platforms. New social media campaigns will remind citizens that online gambling remains illegal in Japan, regardless of whether the platforms operate legally in other jurisdictions.
While most forms of gambling remain illegal in Japan, public sports betting on activities like horse racing and motorboat competitions is permitted. However, due to health concerns during the pandemic, many bettors migrated to online platforms. In response, the government is considering additional restrictions on these legal forms of gambling, including potential bans on credit card payments for public gambling activities.
Addiction Crisis Reaching Critical Levels
The Society Concerned about Gambling Addiction, a Tokyo-based organization, has reported a dramatic increase in gambling addiction cases linked to online casinos. Consultation requests have surged 11-fold over the past five years, with 91 cases involving family members gambling at online casinos reported from January to November 2024, compared to just eight cases in 2019 before the COVID-19 pandemic.
The 24-hour accessibility of gambling via smartphones has been identified as a key factor in this increase. Addiction specialists point to the convenience of being able to gamble from home at any time as particularly problematic compared to traditional gambling venues with limited hours.
More troubling is the connection between gambling addiction and criminal activity. A survey of 681 association members found that 30% reported family members with gambling addictions had engaged in criminal behavior—including embezzlement and theft—or pursued illegal employment through yami baito (illegal part-time jobs).
The association documented one case where a former high school student’s gambling addiction, which began with pachinko, led to extorting approximately ¥10 million ($64,000) from his mother before an arrest for robbery.
Noriko Tanaka, representative director of The Society Concerned about Gambling Addiction, has criticized the government’s approach as insufficient. “The government says online casinos will be subject to stricter controls. But what exactly will this involve? In order to enforce stricter controls, it will be necessary to take legislative action,” she stated.
High-Profile Gambling Scandals
The rise in online gambling has resulted in several high-profile scandals involving public figures, bringing additional attention to the issue. In January 2025, Olympic table tennis medal winner Koki Niwa was fined ¥100,000 ($673) for participating in online gambling.
The sports world was further rocked when 14 players from Nippon Professional Baseball were implicated in gambling activities. Among them was Orix Buffaloes pitcher Taisuke Yamaoka, who later issued a public apology for his actions.
The entertainment industry has not been immune to these scandals. Tokyo police have been investigating several comedians affiliated with the prominent Yoshimoto Kogyo talent agency for alleged involvement in online casino gambling. These high-profile cases have brought increased public awareness to the issue while highlighting the widespread nature of the problem across different segments of Japanese society.
Setting Up Legal Consequences for Offenders
The NPA has emphasized that gambling on overseas online casinos from within Japan is illegal, with fines of up to ¥500,000 ($3,363) and potential prison sentences for habitual offenders. It’s a common misconception that websites operating legally in other jurisdictions are legal for Japanese residents to access.
Despite these penalties, enforcement has proven challenging due to the borderless nature of online activities and the sophisticated methods used by offshore operators to attract Japanese customers. The government’s focus on payment processors and affiliate marketers represents an attempt to attack the problem from multiple angles, disrupting both the financial infrastructure and promotional networks that sustain illegal gambling operations.
Attempting to Innovate in Crypto Gambling
While cracking down on illegal online gambling, Japan is simultaneously navigating the regulatory landscape for emerging technologies that intersect with gaming. In September 2024, Japan’s Financial Services Agency (FSA) announced plans to reform the country’s regulatory framework for crypto gaming.
This reform aims to assist businesses in better managing digital currency assets and stimulate growth in the blockchain gaming sector. By revising the existing Payment Services Act and establishing structured laws for in-game digital currency management, the FSA is making the market more accessible to gaming companies.
The Financial System Council, a policy-making body in Japan, is working on new regulations to encourage innovation and development within the domestic crypto-gaming industry. These steps mark a significant policy shift from Japan’s traditionally strict stance on gaming and gambling, potentially opening doors for further expansion and acceptance of blockchain gaming in the country.
The Move Toward Gambling Legalization
Despite the current prohibition on most forms of gambling, Japan has been moving toward legalizing integrated resort casinos in recent years. This creates an interesting dynamic where the country is simultaneously working to combat illegal online gambling while creating frameworks for regulated land-based casino operations.
The government’s dual approach—enforcing stricter controls on illegal gambling while developing structured frameworks for emerging technologies and regulated gambling—reflects Japan’s attempt to balance public health concerns with economic interests in an evolving digital landscape.
As online gambling addiction cases continue to rise and technology creates new challenges for regulators, the effectiveness of Japan’s comprehensive strategy will depend on its ability to adapt enforcement mechanisms while addressing the root causes of gambling addiction through education, treatment, and prevention.
