Japanese Government to Implement Wide-Ranging Steps to Combate Unlawful Online Gambling Platforms
Japan Crackdown on Online Casinos: New Laws, Fiercer Measures, and a Tightening Grip
Japan's government is gearing up for a full-fledged assault on the burgeoning online casino scene in the country. The rapid rise in gambling addiction and associated illegal activities have prompted a series of drastic measures from the authorities [1].
In May 2025, the Ministry of Internal Affairs and Communications rounded up experts to advise on potential blocking methods for illegal casino websites [2]. This blocking mechanism would effectively bar access to such sites.
The ruling Liberal Democratic Party (LDP) has also set its sights on revising the central framework law to combat gambling addiction [1]. The proposed revisions aim to legally obligate internet service providers to shun promoting illegal casino websites. Furthermore, affiliate sites specifically encouraging users to gambling portals will be outlawed. Credit card payments to certain providers will also be blocked, and youth protection filter software will be fortified [1].
Gambling Addiction Concerns: Awaiting the Numbers
According to the National Police Agency, an estimated 3.37 million Japanese are active users of online casinos, despite the existing ban. The annual gambling expenditure amounts to a staggering 1.2 trillion JPY (approximately 7.6 billion EUR) [2].
Younger individuals are among the most susceptible, often unaware that their participation is illegal. A survey by the magazine Sumikai revealed that 43.5% of respondents didn't realize that online casinos were banned in Japan, while 46% of the affected individuals admitted to incurring gambling-induced debts [2].
What's more chilling is that over 60% of users have acknowledged their addiction to online gambling themselves. The ever-present accessibility of gambling via smartphones facilitates the descent into compulsion and makes it harder to break free [2].
"They immerse themselves in [online casino gambling] as if they were playing a video game and quickly become addicted. Since access to online casino websites is easily possible via smartphones, it's difficult to treat them by denying access." - Takanobu Matsuzaki, head of the psychiatric department of the National Hospital Organization Kurihama Medical and Addiction Center [2]
Constitutional Challenges to Blocking Measures
Technological solutions such as the AI-based filter software i-FILTER developed by Digital Arts are set to aid in the future blocking of gambling sites [1]. Similar measures have, until now, only been legally enforceable for child pornography content. The expert committee is currently deliberating on possible implementations of these measures [1].
The primary challenges lie in constitutionally protected telecommunications secrecy, which discourages internet service providers from accessing data traffic [1]. Past attempts to enforce such measures have failed precisely at this juncture. Discussions revolve around alternative measures such as voluntary blocking by foreign providers or strengthened international cooperation [1].
International Comparison: Other Nations' Stance on Illegal Online Gambling
As Japan navigates its way through the intricacies of implementation, other countries have already taken drastic measures to address the issue. Most Western nations have long relied on targeted blocking in combination with payment and advertising restrictions [1].
Some examples:
- Germany: since the introduction of the new Gambling State Treaty 2021, authorities proactively block unlicensed providers using network blocking (DNS-blocking) [1]. Moreover, payment streams are disrupted through cooperation with banks and payment service providers.
- Austria: the Austrian gambling authority (GGL) uses IP and DNS blocking to obstruct unlicensed providers [1]. The Administrative Court confirmed the legality of these blocks in 2019.
- United Kingdom: the Gambling Commission works with internet providers to block illegal sites via DNS-blocking [1]. Additionally, affiliate marketing is monitored, and payment service providers must block suspicious transactions.
- Norway: since 2024, internet providers may, upon instruction from the Norwegian regulatory authority, block DNS addresses of illegal gambling sites [1]. Only state-licensed providers like Norsk Tipping are allowed to operate. Information campaigns and fines against illegal operators are also planned.
- Denmark: the Danish gambling authority Spillemyndigheden had 49 illegal providers legally blocked in 2023, including sports betting and casino sites without a Danish license [1]. Since 2012, over 270 blocks have been imposed. The authority actively seeks new sites through automation and public reports and regularly initiates legal action. Providers must display the official license logo when operating legally.
- Australia: the Australian Communications and Media Authority (ACMA) has extensive blocking powers [1]. It regularly publishes public lists of blocked providers and requires cooperation from internet providers.
A Tipping Point: Celebrity scandals fuel public pressure
A significant catalyst for the present discourse on the dangers of illegal online casinos was a series of celebrity scandals involving gambling [1]. Comedians from the Yoshimoto Kogyo agency, alongside several baseball players, were ensnared in gambling scandals. This escalating situation has intensified public pressure and fueled the current debate.
Enrichment Data:
- Legal Considersations: Japan’s new online gambling bill passed the House of Representatives in May 2025 and is currently under review by the House of Councillors. If approved, it will prohibit the operation, promotion, and advertising of online casinos and impose fines of up to 500,000 yen (approximately $3,500) on users who access illegal online gambling sites [1]
- Gaming Industry Response: International operators of online casinos have denounced Japan's ban, claiming that it disregards the millions of Japanese who gamble responsibly [1]
- Potential Economic Impact: Critics argue that the ban on online gambling will result in a loss of potential tax revenue and stimulus for Japan's economy [1]
- Legal Extraterritoriality: The proposed ban on online gambling extends to gambling sites offered by foreign operators [3] and could potentially infringe on the legal gambling activities of foreign companies, raising questions of extraterritoriality [1]
- Sanctions on Foreign Companies: Companies that operate without a license in Japan will face penalties, including fines and the freezing of assets [3]
Online casinos in Germany have implemented proactive blocking of unlicensed providers through methods like DNS-blocking, in accordance with the new Gambling State Treaty 2021. Such measures are aimed at addressing policy-and-legislation concerns related to illegal gambling, as part of a broader approach that includes payment and advertising restrictions (general-news).
For instance, Austria's gambling authority uses IP and DNS blocking to obstruct unlicensed providers, a practice that aligns with their commitment to regulating and curbing crime-and-justice issues associated with online gambling.
