Loophole in Japan's Online Casino Ad Regulations
Japan Exposes Lax Regulations in Overseeing 'Free-to-Play' Online Casino Advertising Campaigns
Japan, known for its technological prowess, has inadvertently unveiled a chink in its online casino marketing armor. A regulatory loophole allows shady online casino operators to flaunt their free-to-play products on Japanese digital and television platforms.
Breathtaking oversight
A blind eye has been turned to online casino marketing by authorities, according to the Asahi Shimbun. This oversight has the potential to spur illegal gambling on these sites.
The revelation comes in the wake of UK-based streaming platform DAZN running free game ads funded by iCasino site Vera & John. DAZN Japan claimed they allowed such ads because they were for free games and wouldn't entice visitors to a casino site.
In response, DAZN Japan has suspended the previously booked ads from Vera & John, a subsidiary of Gamesys, both of which fall under the US gaming giant parent company, Bally's Corporation.
Rising Concerns
Japanese police report a surge in interest in online casinos, fueled by an avalanche of ads for free online casino gaming, which is banned in the country.
The conundrum originates from a common practice in developed gambling markets: iCasino operators lure customers with free offers, deceitfully guiding them towards paid games.
Strikingly, there are no legal regulations governing advertisements by online casino operators for both free games and casino sites in Japan, according to the Consumer Affairs Agency.
Troubling Penalties
Any Japanese resident progressing from free to paid casino games risks facing a fine of up to 500,000 yen ($3,400) or a three-year prison sentence, as online gambling is illegal in Japan. Authorities consider any website a gambling site if players do not bet money, even if it resembles a casino site.
Public Ignorance and a Call to Action
The widespread allure of seemingly sanctioned online casino ads on national television and reputable media channels has led many unknowing citizens to believe gambling is legal.
Recently, high-profile comedian Kuruma Takahira confessed to betting on an iCasino site after seeing an ad on the internet. Yoichi Torihata, Professor Emeritus of Financial Theory at Shizuoka University, warns that free, non-betting games lower inhibitions for gambling on casino sites.
In response, Japan's leading political group, the Liberal Democratic Party, aims to outlaw the online ads through a revisionary bill.
Ignorance Bliss No More
In light of the recent scandal and calls for stricter regulation, the cat's out of the bag, and public awareness of this illegal activity is on the rise. For now, the government is focusing on cracking down on overseas casino sites, but calculations are underway to block access to these platforms and their advertisements via new measures.
- The Consumer Affairs Agency in Japan has admitted that there are no legal regulations governing advertisements by online casino operators for both free games and casino sites in the country, potentially allowing shady operators to exploit this loophole.
- Despite the illegality of online gambling in Japan, many citizens are unknowingly drawn towards casino sites through seemingly sanctioned online casino ads on national television and reputable media channels, such as those from DAZN Japan that featured the subsidiary of Gamesys, Vera & John.
- In response to the surge in interest in online casinos and the ongoing regulatory scandal, Japan's leading political group, the Liberal Democratic Party, plans to outlaw the online ads through a revisionary bill, aiming to protect citizens from the potential risks and penalties associated with online sports-betting and casino activities.
