Japan is facing an increasingly severe problem of illegal online gambling. According to a recent research report released by the Japan Sports Ecosystem Promotion Committee, in 2024, Japanese gamblers wagered a total of 6.45 trillion yen (approximately 45 billion US dollars) on unauthorized online casinos and sports betting platforms.
The report, assisted by the Japanese National Police Agency, reveals the rapidly spreading trend of illegal gambling through digital channels, especially in the field of football. The amount of illegal betting related to football alone reached 2.9 trillion yen, accounting for more than half of the total illegal online sports betting.
Lack of regulation leads to "offshore flight"
Currently, Japan's regulation of gambling remains relatively strict. Apart from state-operated lotteries (such as the "toto" sports promotion lottery) and limited betting platforms such as horse racing and motorboat racing, almost all forms of online gambling activities are considered illegal. Although this system emphasizes social responsibility and risk control, it also drives many users seeking higher odds and more flexible betting options to offshore platforms.
Unlike Japan's limited lotteries, these foreign platforms offer unlimited betting, rich promotions, and instant odds attraction, thus becoming the first choice for millions of Japanese gamblers. However, this also means that these platforms are outside the jurisdiction of Japanese law, lacking basic consumer protection mechanisms.
"Gray area" users surge, regulatory pressure increases
According to the report, about 3.37 million Japanese users participated in illegal online casinos in 2024, with the betting amount reaching 1.2 trillion yen. In the broader sports betting market, the amount of illegal betting reached 4.9 trillion yen, covering football, basketball, baseball, and other areas.
The committee pointed out that some platforms may violate legal boundaries such as intellectual property rights, portrait rights, and image rights. "These overseas gambling operators are providing illegal services to Japanese users, some even using unauthorized promotions featuring Japanese celebrities or event images."
At the same time, the investigation shows that many gamblers are often unaware that their actions constitute illegal behavior when arrested or investigated. This also exposes the current severe lack of legal education and risk education.
Gambling industry "going overseas": Who is serving Japanese gamblers?
These offshore gambling platforms are mostly located in jurisdictions such as the Philippines, Malta, Curaçao, the Isle of Man, Alderney, and Ukraine. These countries and regions allow online gambling license transactions in exchange for a share of the operators' taxes, mainly targeting overseas customers in Asia and Europe.
However, critics argue that these regions have lax regulation, low transparency, and difficult consumer rights protection. Once a platform absconds or refuses to pay out winnings, users often have no recourse.
Beyond Pachinko: The new situation in Japan's gambling industry
Although pachinko remains one of the most mainstream forms of gambling in Japan, it is not legally defined as "gambling" because players win prizes, not cash. However, many "exchange places" are usually operated by the same owner as the pachinko parlors, effectively constituting a covert cash-out channel.
In the future, Japan's gambling industry may face a breakthrough in legalization. The first legal physical casino in Japan, MGM Osaka, invested by MGM Resorts, is expected to open in the coming years. This could provide Japan with a regulated gambling channel and may be a key step in curbing the spread of illegal gambling.
