Japan initiates new ‘strategy of enforcement’ to tackle unlicensed casinos
From 1 September, the National Police Agency of Japan (NPA) will initiate its new ‘strategy of enforcement’ against unlicensed online casinos.
The campaign runs parallel to new laws implemented by the Diet (Parliament) to combat the exposure of unlicensed gambling, as the promotion of offshore gambling platforms will become a criminal offence.
Yet despite imposing harsher penalties, concerns remain that the police and government are criminalising the wrong parties in the fight against illegal gambling. Japan’s legal stance on online casinos has long been unyielding.
Set by Japan’s Penal Code, all forms of gambling outside state-regulated industries—such as horse racing and pachinko are illegal. But in recent years, offshore operators have exploited digital loopholes and linguistic accessibility to capture millions of Japanese consumers.
The government’s legislative response, passed in June, is Japan’s most sweeping to date: outlawing not only the operation and use of unlicensed gambling sites, but also the advertising, promotion, and referral to such platforms through any online medium.
The updated law criminalises a wide array of previously unregulated activity. Influencer endorsements, affiliate websites, ranking lists, banner ads, smartphone apps, and even user-generated content are now deemed illegal if they direct traffic to gambling websites not licensed within Japan.
Media platforms are being put on notice, with ISPs and app stores expected to comply with takedown requests. To bolster its reach, Japan has appealed to foreign regulators including those in Malta, Curaçao, the Isle of Man, and the Philippines—to block access to Japanese users or remove Japanese-language support from gambling services.
The NPA’s language is unambiguous. “The use of online casinos—regardless of server location—constitutes a criminal act under Japanese law,” it declared. The Ministry of Justice, meanwhile, frames the reform as a matter of national sovereignty in the digital age: a pushback against “vice markets” that prey on the social and financial vulnerabilities of Japanese citizens.
日本国内では、オンラインカジノに接続して賭博を行うことは犯罪です。また、日本国内にいる人を賭博に誘引する行為は、海外からでも違法です。絶対にやめましょう。#警察庁 #オンラインカジノ #アフィリエイト #ボーナスコード #暗号資産 https://t.co/lBVcp2rz9J pic.twitter.com/GVupAO4IiV
— 警察庁 (@NPA_KOHO) May 13, 2025
Fighting a Trillion-Yen habit
The government’s newfound urgency is rooted in sheer scale. A 2024 survey conducted by the National Police Agency revealed that approximately 3.37 million people in Japan—nearly 3.4% of the population have used offshore casino websites at least once, with an estimated 1.97 million active users.
The average annual wager per user sits at a striking ¥630,000 (approx. €3,900), placing the total volume of illegal online gambling at around ¥1.24 trillion (approx. €7.7 billion). This figure dwarfs the legal betting markets, and has led lawmakers to view offshore gambling not just as a moral concern, but a fiscal one.
The picture darkens further when viewed through a social lens. Nearly 40% of users surveyed did not realise that gambling on offshore casino websites was illegal in Japan. Among regular gamblers, 46% reported having incurred debt, with many borrowing money or using high-interest consumer credit to finance their bets. As the financial consequences spill over into family life, public institutions are under mounting pressure to respond. But the state’s answer has not been to offer support—it has been to punish.
Enforcement has surged. In the first half of 2025 alone, Japanese police made 279 arrests tied to online gambling, more than double the tally for the whole of 2024. And while much of the law’s language appears directed at operators and facilitators, the overwhelming majority of those arrested were individual consumers. The scale of enforcement, critics argue, is not only unprecedented but strategically misdirected.
Prohibition over Protection
Despite launching Japan’s first Integrated Resort in Osaka—complete with a multibillion-yen casino floor—the government shows no appetite for legalising online gambling. The prevailing logic in policymaking circles is that to regulate is to legitimise, and that legalisation would only increase exposure and normalise risk-taking behaviours.
Ministries such as Finance, Health, and Internal Affairs view gambling as a regulatory burden, not a potential revenue stream to be managed or monetised. There is no political momentum to reframe gambling policy through a commercial or public health lens.
Unlike neighbouring states, which permits tightly controlled state-run online betting via Singapore Pools, or Hong Kong Jockey Cub (HKJC) type business. Japan has never formally proposed or consulted on launching a national, state-owned online gambling firm. The very idea remains anathema to the country’s legislative culture, which treats gambling not as a taxable utility but as a social hazard.
Yet the policy emphasis on criminality has exposed deeper contradictions. Public messaging around the new law focuses almost exclusively on deterrence. There is no state-backed campaign addressing gambling addiction, nor significant investment in treatment or financial rehabilitation programmes. As a result, critics warn, Japan is tackling a behavioural health issue with a criminal justice toolkit.
The cultural context makes the problem harder to untangle. In Japan, addiction is rarely discussed openly and often perceived as a moral failure rather than a health condition. The social stigma is so strong that few seek help voluntarily. This silence has been mirrored in policy, with addiction support conspicuously absent from the NPA’s rollout plan.
Whether this strategy can succeed remains uncertain. In a globalised digital economy, borders mean little to offshore platforms with Japanese-language support and crypto payment systems. If Japan continues to criminalise behaviour without providing alternatives, it risks not only driving users further underground—but also undermining public trust that cannot be won by enforcement alone.