The Cabinet of Japan Prime Minister Shigeru Ishiba has a strategy intended to combat the rising tide of illegal online gambling.
The government’s Cabinet has approved a multipronged strategy in Japan to battle illegal online gambling. A National Police Agency report says almost 3.4 million Japanese have patronised offshore gambling sites. Of those, an estimated 1.97 million are regular users, spending JPY1.2 trillion (US$7.75 billion) a year on the pastime.
About 5% of gamblers are believed to be young people between the ages of 10 and 19.
“Because online gambling is conveniently accessible with just a smartphone, there are fears that children may become increasingly addicted to gambling without their parents realizing it,” Toshiaki Tsuneoka, psychiatrist and associate professor at Showa Medical University, told the Japan News.
The government strategy would also remind citizens that the activity remains illegal in Japan, even if the operators are regulated in other jurisdictions. Penalties include fines of up to JPY500,000. Repeat offenders could face up to three years in jail.
Legal gaming to grow with Japan’s first casino
Japan’s legal gaming sector now includes pachinko, state-run lotteries and bets on horse racing and other public sports. In 2030, land-based casino gaming will join the list with the opening of the nation’s first integrated resort. The casino at MGM Osaka, on Yumeshima Island in Osaka Prefecture, will offer 2,000 slot machines, 200 tables and thousands of electronic games.
MGM’s local partner, Japanese developer Orix, predicts the IR wil attract 20 million visitors a year and generate JPY520 billion (US$3.4 billion) in revenue. Orix has said the IR will stand up to competition from established resorts in Macau and Singapore.
Japan nationals who patronise MGM Osaka will have to pay an entry fee of JPY3,000. Osaka residents will be required to pay an additional municipal levy, doubling the fee.
Legal gaming currently generates an estimated JPY20 trillion per year, with just JPY840 million allocated for prevention programs, said Noriko Tanaka, of the Society Concerned about Gambling Addiction. Tanaka says Japan is decades behind other countries in its efforts to mitigate gambling harm. She points to government data documenting 398 gambling-related suicides in 2024. Tanaka said that is likely about one-fifth of actual cases.
“Almost no progress has been made on gambling addiction countermeasures in Japan,” she told UCA News in September.
Illegal online gambling can lead to other crimes
The government’s gambling prevention strategy was first approved in March. In June, it updated the 2018 Basic Act on Measures to Counter Gambling Addiction. The measures prohibited new online casinos and related advertising and called for greater public awareness.
One case of illegal iGaming sparked headlines across Japan: a 15-year-old boy who said he started gambling in sixth grade, then resorted to crime to support his habit. The boy allegedly conducted online romance scams, posing as a female college student to defraud dozens of men.
Emerging prediction markets like PredictIt and Kalshi have also created new opportunities to place wagers online.
AloJapan.com