In a decisive move, Japan’s cabinet has sanctioned a comprehensive strategy to tackle the rampant issue of illegal online gambling. According to a report by the National Police Agency, nearly 3.4 million Japanese citizens have engaged with offshore gambling platforms. Of these individuals, approximately 1.97 million are regular participants, collectively spending a staggering JPY1.2 trillion (about US$7.75 billion) annually.
Alarmingly, about 5% of these gamblers are identified as young individuals aged between 10 and 19. The accessibility of online gambling via smartphones poses significant risks, as highlighted by Toshiaki Tsuneoka, a psychiatrist and associate professor at Showa Medical University. He shared concerns that the convenience of online access might lead to an increase in gambling addiction among children, often unnoticed by their parents.
The government’s newly approved strategy emphasizes reminding the public that participating in online gambling is illegal in Japan, regardless of whether the operators are regulated elsewhere. Legal repercussions for engaging in this activity include fines up to JPY500,000, with repeat offenders risking up to three years of imprisonment.
As Japan tightens its grip on illegal gambling, its legal gaming sector is poised for expansion. Currently, legal gaming activities in Japan encompass pachinko, state-run lotteries, and wagering on horse racing alongside other public sports. The landscape is set to change in 2030 with the inauguration of the country’s first integrated resort featuring land-based casino gaming. This highly anticipated development, MGM Osaka, located on Yumeshima Island in Osaka Prefecture, promises to house 2,000 slot machines, 200 gaming tables, and thousands of electronic games.
The resort’s local partner, Japanese developer Orix, forecasts that MGM Osaka will attract 20 million visitors annually and generate revenue of JPY520 billion (approximately US$3.4 billion). Orix confidently asserts that the integrated resort will hold its own against seasoned competitors in Macau and Singapore. However, entry to the casino for Japanese nationals will come with a JPY3,000 fee, and Osaka residents will face an additional municipal levy, effectively doubling the cost.
Despite the potential for growth in the legal gaming sector, Japan still faces significant challenges in addressing gambling addiction. Presently, the sector generates an estimated JPY20 trillion annually, yet only JPY840 million is allocated to prevention programs, according to Noriko Tanaka of the Society Concerned about Gambling Addiction. Tanaka laments that Japan is trailing far behind other nations in its efforts to address gambling-related issues, citing government statistics that recorded 398 gambling-related suicides in 2024. She believes this figure represents only a fraction of the true scale of the problem. “Almost no progress has been made on gambling addiction countermeasures in Japan,” she remarked in an interview with UCA News in September.
The government’s gambling prevention strategy, initially approved in March, received an update in June with amendments to the 2018 Basic Act on Measures to Counter Gambling Addiction. These revisions banned the establishment of new online casinos and related advertising, while also calling for heightened public awareness.
A notable case highlighting the dangers of illegal online gambling involved a 15-year-old boy whose gambling habit, initiated in sixth grade, led him to commit crimes. The boy reportedly engaged in online romance scams, pretending to be a female college student to swindle numerous men.
Emerging prediction markets such as PredictIt and Kalshi have further expanded the avenues for placing wagers online. These platforms, though innovative, contribute to the evolving landscape of online gambling, presenting both opportunities and challenges.
Critics argue that completely prohibiting online gambling may not be realistic, given the global trend towards legalization and regulation. They suggest that Japan might consider a more balanced approach, focusing on regulation and harm reduction rather than outright bans. By observing international examples, Japan could potentially develop a framework that allows for controlled online gambling, ensuring consumer protection and increased tax revenues.
The debate on how best to manage online gambling continues, with stakeholders weighing the merits of prohibition against the benefits of regulation. While Japan’s current stance is clear, the evolving nature of the industry may necessitate future adjustments to its strategies. As legal gaming prepares to expand with the introduction of integrated resorts, the government remains vigilant in its efforts to curb illegal activities, aiming to safeguard its citizens while fostering a sustainable gaming environment.
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