Japan Moves to Ban Online Casinos as Illegal Bets Exceed ¥1

Japan’s underground online casino market has exploded—now topping ¥1.2 trillion (US$7.4 billion) in annual bets.

In response, lawmakers from both ruling and opposition parties have agreed to submit a new bill banning the operation and promotion of online casinos.

The goal: curb gambling harm, clarify legal ambiguities, and educate the public that online casino gambling is illegal in Japan.

If passed, the bill would mark a major shift in Japan’s approach to gambling enforcement and digital access control—without imposing direct penalties, yet signaling stronger oversight.

Japan to Ban Online Casinos Amid ¥1.2 Trillion Surge in Illegal Betting

3 Key Points

• Bipartisan lawmakers have agreed to submit a bill banning online casinos during the current Diet session.
• Illegal gambling through online casinos has reached over ¥1 trillion annually, with millions unaware it’s unlawful.
• The bill includes advertising bans and user redirection restrictions, but no criminal penalties—focusing on awareness and deterrence.

Online Casino Ban Gains Momentum in Japanese Parliament

Japan is taking decisive steps to crack down on its rapidly growing illegal online gambling market.

Lawmakers from eight political parties and parliamentary groups, representing both the ruling coalition and the opposition, have agreed to jointly submit a bill to prohibit online casino operations and marketing.

The bill is scheduled for presentation to the House of Representatives’ Committee on Cabinet and is expected to pass before the end of the current Diet session.

If enacted, it would:

• Ban the opening and operation of online casinos within Japan
• Prohibit advertising and user redirection to casino platforms via social media and online content
• Call for government-led awareness campaigns to inform the public of existing gambling laws

¥1.2 Trillion in Bets and Growing Confusion

The urgency behind this bill stems from alarming data released by Japan’s National Police Agency in March.

The report estimated that:

• 3.3 million people in Japan accessed online casinos
• ¥1.2 trillion (US$7.4 billion) in wagers were placed in one year
• A majority of users were unaware that their activities were illegal

Although online gambling may be legal in other jurisdictions, accessing or operating such platforms from within Japan remains prohibited under the Penal Code.

The new bill aims to eliminate ambiguity, ensuring users and advertisers understand that participation in online casinos is illegal regardless of where the platform is based.

No Penalties, But Greater Pressure on Enforcement

Interestingly, the bill does not introduce criminal penalties for individuals who gamble online.

Instead, the legislation:

• Focuses on restricting operations and visibility of online gambling platforms
• Seeks to block access at the network level
• Encourages public education initiatives to reduce user engagement

To support enforcement, the Ministry of Internal Affairs and Communications has formed an expert panel to explore technologies like IP blocking and DNS filtering to prevent users from accessing illegal sites.

“It is essential that people understand these sites are not only illegal but also unregulated, exposing them to serious risk,” a ministry official stated.

Japan’s Regulatory Strategy: Prevention Over Punishment

While other countries use taxation or licensing to manage online gambling, Japan has taken a more conservative stance, emphasizing social risk, organized crime prevention, and addiction deterrence.

This bill continues that trend, favoring prevention, education, and platform disruption over criminalization.

Local governments will also be tasked with delivering regional campaigns explaining the dangers and legal risks associated with unlicensed gambling.

Japan’s move to introduce an online casino ban reflects a growing urgency to safeguard public welfare amid skyrocketing illegal bets.

With over ¥1.2 trillion wagered annually and millions engaging unknowingly, the law seeks to clarify the legal framework, suppress illegal advertising, and educate the public.

Although it lacks punitive measures, the bill sends a strong message:

Online casino gambling is illegal in Japan, and authorities are watching more closely than ever.

For foreign operators targeting Japanese users, this is a call to reassess regional strategies and compliance. For domestic users, it’s a wake-up call to the risks they may not even know they’re taking.

✅ Need a legal compliance strategy for East Asian markets or insight into Japan’s shifting regulatory trends? I can help you stay ahead of the curve.

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