Japan Targets Illegal Online Casinos as Gambling Concerns Mount

Japan is doubling down on enforcement against illegal online gambling after a Tokyo-based sports organization and the National Police Agency revealed a surge in overseas wagering. The data shows that bets worth billions of Yen are placed on international sportsbooks and casinos despite the activities being strictly banned under Japanese law. Japanese lawmakers now seek stricter regulations, mainly on social media casinos and gambling ad bans, amid concerns about gambling addiction and organized crime links.

Illegal Bets Dwarf Local Market

A May 15^th report by Japan’s Council for Sports Ecosystem Promotion reveals JPY6.45 trillion (US$44 billion) flowed to overseas gambling platforms in 2024: JPY5.43 trillion was wagered on international sports and JPY1.02 trillion on domestic events like baseball (JPY528.1 billion) and soccer (JPY133.4 billion). These figures significantly surpass Japan’s legal sports lottery revenue of JPY133.6 billion for the 2024 fiscal year—a 50:1 disparity between illegal and regulated markets.

The data highlights baseball’s dominance in domestic illegal betting, accounting for over half of the JPY1.02 trillion funneled to illegal sites; soccer follows at 33%. Analysts note that foreign platforms exploit Japan’s sports popularity while avoiding strict advertising bans applied to domestic operators.

The Role of Digital Tools

The National Police Agency attributes the surging illegal gambling to online gambling platforms and social media campaigns personalized in the Japanese language. These channels obscure legal risks, with 43.5% of their 3.37 million users unaware that such bets violates laws. Targeted ads and localized interfaces, often mimicking legal lottery designs, have become normalized with the ubiquity of smartphones. These gadgets were used to complete 78% of wagers through bank and credit card transfers, according to 2024 arrest records.

Enforcement challenges persist as these platforms rapidly adapt to the digital era. Authorities made 279 online betting arrests last year (up 160% from 2023), yet this represents less than 0.01% of estimated participants.

Proposed Restrictions

With illegal gambling volumes 50 times higher than legal channels, policymakers face mounting pressures to close the regulatory gaps. The ruling Liberal Democratic Party and opposition factions have unified to propose legislation banning online casino operations and their promotion on social media. The bill, drafted through a rare eight-party collaboration across Japan’s political spectrum, will undergo a House of Representatives review this month; it is expected to pass by the session’s end.