Japan Launches New Plan to Combat Illegal Online Gambling

The Japanese government has unveiled a comprehensive strategy to tackle illegal online gambling, responding to growing concerns about addiction and the spread of unauthorized gambling activities across the nation.

Prime Minister Shigeru Ishiba’s Cabinet approved the sweeping plan on March 21, 2025, marking a significant escalation in the country’s efforts to address gambling addiction and enforce existing prohibitions on most forms of online wagering.

Key Takeaways

• Japanese government approved comprehensive anti-illegal gambling plan on March 21, 2025
• National Police Agency survey found 3.37 million Japanese residents have used illegal gambling sites
• Active users wager approximately ¥1.2 trillion ($8 billion) annually on foreign platforms
• Plan targets payment processors, affiliate marketers, and includes public awareness campaigns
• Recent scandals involving athletes and celebrities have heightened government concern
• The initiative comes amid Japan’s ongoing efforts to regulate its legitimate gambling industry

A Coordinated Response to a Growing Problem

The newly unveiled strategy represents Japan’s most coordinated response yet to the proliferation of illegal online gambling operations targeting Japanese citizens.

Despite strict laws limiting legal gambling primarily to publicly managed racing, pachinko, and the recently established integrated resorts, millions of Japanese residents regularly access offshore gambling websites that operate beyond the reach of domestic regulations.

“The situation has reached a critical point requiring immediate and decisive action,” said Yoshitaka Ito, the minister in charge of gambling addiction measures, during the announcement. “We are seeing an alarming increase in the number of people accessing online casino sites, which is contributing to serious addiction problems and financial harm across Japanese society.”

The government’s intervention follows years of growing concern about the accessibility of illegal gambling operations. While Japan has traditionally maintained strict limitations on gambling activities, technological advances and the global nature of online gambling have made enforcement increasingly challenging.

Scope of the Problem: Alarming Statistics

The scale of illegal online gambling in Japan was highlighted by a comprehensive National Police Agency (NPA) survey completed in late 2024.

The findings painted a troubling picture of widespread participation in unauthorized gambling activities:

• Approximately 3.37 million Japanese residents have gambled on foreign-run online platforms
• 1.97 million are classified as active users, regularly participating in online gambling
• These active users collectively wager around ¥1.2 trillion ($8 billion) annually
• The majority of these funds flow to operators based in jurisdictions with minimal regulatory oversight

Experts suggest these figures likely underrepresent the true extent of the problem, as many participants may be reluctant to disclose their gambling activities even in anonymous surveys.

“The digital nature of these operations makes them particularly difficult to track,” explained Kenji Watanabe, cybercrime specialist at Tokyo University. “Many users access these sites through VPNs or other privacy tools, creating additional challenges for enforcement agencies.”

Celebrity Scandals Highlight Public Concern

The government’s action comes in the wake of several high-profile scandals involving Japanese celebrities and athletes found to be participating in illegal online gambling activities.

In December 2024, popular television personality Hiroshi Yamamoto admitted to losing over ¥50 million on offshore betting sites, triggering significant media attention and public discussion about online gambling addiction.

More damaging still was the February 2025 revelation that three professional baseball players had not only participated in illegal online gambling but had potentially compromised the integrity of games. While investigations are ongoing, these incidents have heightened public awareness of the issue and intensified pressure on the government to take decisive action.

“These cases have brought to light what has long been a hidden problem in Japanese society,” said Akiko Nakamura, addiction counselor at the Japan Responsible Gaming Council. “For every celebrity case that makes headlines, there are thousands of ordinary citizens struggling with gambling addiction behind closed doors.”

Four-Pronged Approach to Enforcement

The government’s plan outlines four primary strategies to combat illegal online gambling:

1. Crackdown on Payment Services

At the heart of the initiative is a renewed focus on the financial infrastructure that enables illegal gambling. Authorities will intensify enforcement against payment services operators involved in transferring money between Japanese citizens and offshore gambling sites.

“By targeting the payment ecosystem, we aim to disrupt the flow of funds to illegal operators,” explained Justice Minister Taro Nakagawa. “We will be working closely with financial institutions and payment processors to identify and block transactions related to illegal gambling activities.”

The plan includes provisions for:

• Enhanced monitoring of suspicious transaction patterns
• Cooperation agreements with major domestic banks and credit card issuers
• Blocking mechanisms for identified gambling-related payment channels
• Penalties for financial institutions that fail to implement adequate controls

2. Targeting Affiliate Marketers

The second major component focuses on the promotional ecosystem surrounding illegal gambling.

The plan includes tougher actions against individuals and companies that promote online casinos for commissions, commonly known as affiliate marketers.

“Affiliate marketers play a crucial role in directing Japanese citizens to illegal gambling sites,” said Communications Minister Yumiko Sato. “Many operate sophisticated online operations that present gambling as a legitimate entertainment option and downplay legal and addiction risks.”

Enforcement measures will include:

• Criminal prosecution of individuals operating affiliate marketing sites from within Japan
• Cooperation with internet service providers to block access to affiliate websites
• Monitoring of social media platforms for gambling promotion
• Legal action against companies placing online casino advertisements

3. Public Awareness Campaigns

Recognizing that enforcement alone is insufficient, the government has allocated ¥500 million for public awareness campaigns. These will emphasize the illegality of online gambling and highlight the risks of addiction and financial harm.

“Many Japanese citizens may not fully understand that these activities are illegal,” noted Minister Ito. “Our campaign will clarify the legal situation while also educating the public about the real risks associated with unregulated gambling.”

The awareness initiative includes:

• Social media advertisements targeting demographics most likely to participate in online gambling
• Educational materials for schools and universities
• Partnerships with celebrities and influencers to promote responsible attitudes toward gambling
• Enhanced resources for addiction support services

4. Business Cooperation

The final prong involves enlisting wider business cooperation in the fight against illegal gambling promotion. The government will urge companies across various sectors to ban the display of online casino advertisements and refuse partnerships with gambling-adjacent businesses.

“We need a whole-of-society approach to address this challenge,” said Economy Minister Hiroshi Tanaka. “Legitimate businesses have a social responsibility to ensure they are not inadvertently facilitating illegal gambling activities.”

The government plans to:

• Issue guidelines for media companies regarding gambling-related content
• Create certification for “gambling-free” digital platforms
• Provide legal protection for companies that break contracts with entities later discovered to be connected to illegal gambling
• Establish a reporting hotline for businesses approached by gambling operators

Challenges to Enforcement

Despite the comprehensive nature of the plan, experts caution that enforcement will face significant challenges. The borderless nature of internet gambling presents jurisdictional hurdles that even the most determined domestic efforts cannot fully overcome.

“The fundamental challenge remains that most of these operators are based in jurisdictions where online gambling is legal,” explained international law expert Yuki Takahashi. “Japanese authorities have limited ability to take direct action against companies that have no physical presence within Japan.”

Additional challenges include:

• Technological adaptability of gambling operators, who may develop new payment channels or access methods
• The widespread use of cryptocurrency, which can circumvent traditional financial controls
• The difficulty in distinguishing genuine gaming activities from gambling in increasingly blurred digital environments
• Limited resources for enforcement across Japan’s 47 prefectures

Context: Japan’s Evolving Gambling Framework

The crackdown on illegal online gambling occurs against the backdrop of Japan’s gradually evolving approach to legitimate gambling activities.

After decades of restricting legal gambling primarily to pachinko, public lotteries, and racing (horse, bicycle, motorcycle, and powerboat), Japan passed legislation in 2018 allowing for the development of integrated resorts with casino facilities.

The first of these resorts, located in Osaka, is scheduled to open in 2029 following pandemic-related delays and regulatory challenges. Meanwhile, the government has strengthened its approach to gambling addiction with the Basic Act on Gambling Addiction Countermeasures, passed in 2018.

“There’s a certain tension between Japan’s move to expand legitimate gambling options while simultaneously cracking down on illegal operations,” observed political analyst Hideo Yamamoto. “The government is attempting to create a controlled environment for gambling while eliminating unregulated alternatives.”

International Precedents and Partnerships

In developing its approach, Japanese authorities have studied international precedents, particularly from countries that have faced similar challenges with offshore gambling operations.

Officials have held consultations with counterparts from Australia, Singapore, and the United Kingdom to understand effective enforcement strategies.

“Singapore’s experience with remote gambling legislation has been particularly instructive,” noted a senior official from the National Police Agency who requested anonymity. “Their approach of combining payment blocking, website blocking, and public education has shown measurable results in reducing illegal gambling activity.”

The plan also includes provisions for international cooperation, including:

• Information sharing with international law enforcement
• Diplomatic engagement with jurisdictions hosting online gambling operators
• Participation in multinational efforts to address cross-border gambling issues
• Technology sharing with countries employing advanced monitoring tools

Industry and Public Reaction

Initial reaction to the government’s announcement has been mixed.

Anti-gambling advocates have generally welcomed the measures while expressing concern that they may not go far enough. Meanwhile, some civil liberties groups have raised questions about potential overreach in monitoring online activities.

“While we support efforts to address gambling addiction, we must ensure that measures respect privacy rights and due process,” said Kento Suzuki, director of the Digital Rights Japan Coalition. “Blocking websites and monitoring financial transactions can create concerning precedents if not implemented with appropriate safeguards.”

The legitimate gambling industry, including pachinko operators and companies involved in the development of integrated resorts, has broadly supported the crackdown on illegal competitors. However, some industry observers note that the very restrictions on legal gambling in Japan have created the vacuum that offshore operators exploit.

“If Japanese citizens had more access to regulated, responsible gambling options, there might be less demand for illegal alternatives,” suggested gaming industry consultant Takeshi Kono. “The government might consider whether a more comprehensive approach to regulation, rather than prohibition, could better serve public interest.”

Next Steps and Implementation Timeline

The government has outlined an ambitious implementation schedule for the various components of its plan:

• April 2025: Formation of a dedicated task force within the National Police Agency
• June 2025: Launch of initial public awareness campaigns
• July 2025: Implementation of enhanced financial monitoring protocols
• September 2025: Commencement of coordinated enforcement actions against affiliate marketers
• December 2025: First comprehensive evaluation of the plan’s effectiveness

Officials have emphasized that the initiative represents an ongoing commitment rather than a one-time action. The plan includes provisions for regular assessment and adaptation based on evolving technologies and gambling practices.

“This is not a short-term project,” concluded Minister Ito. “We are committed to a sustained effort to protect Japanese citizens from the harms of illegal gambling while promoting responsible attitudes toward legal forms of gambling entertainment.”

As Japan continues to navigate the complex relationship between prohibition, regulation, and enforcement in the gambling space, the success of this initiative will likely influence the country’s broader approach to gaming policy in the years ahead.

Sources

Japan’s Cabinet approves new strategy to combat online gambling addiction

Cabinet approves strategy to battle illegal online casinos