Authorities in Japan are pulling out all the stops in looking to thwart the illegal online gambling following a worrying trajectory of record engagement in 2025.
The National Police Agency (NPA) reported that it took enforcement action against 317 individuals in 2025, a record high since data began to be collected in 2018.
The vast majority of cases, 158, were identified to involve online casinos, and 221 individuals were arrested as part of the enforcement against the activities.
Online gambling is strictly prohibited in Japan. However, a survey from the NPA in 2024 estimated that over 3 million people have engaged engage in illegal online casino gambling at least once. Meanwhile, almost 2 million continue to take part in online gambling each year, with total wagers estimated to be around ¥1.24 trillion (£5.76bn) annually.
Alongside gamblers, the NPA detailed that it has taken action against those guilty of facilitating access to illegal gambling.
A total of 25 individuals across eight cases were identified and arrested for being operators, affiliates or payment processors for online gambling networks.
In particular, four individuals were arrested for promoting overseas casinos via video streaming sites.
Meanwhile, two payment processing providers (PSPs) who laundered gambling proceeds were also arrested and charged with controlling the proceeds of crime.
Given that many of the online casinos accessed by Japanese players are located overseas, targeting conduits such as affiliates and PSPs may serve as an effective means for officials in Japan to combat activity on the black market.
Should this avenue achieve success for Japanese policymakers, it may well usher in a new strategy of enforcement for other markets looking to take effective enforcement to address the threat of the black market.
Alongside greater enforcement, the NPA attributed the rise in detection to a greater awareness of the illegality of gambling amid several high-profile cases of celebrities taking part in online gambling.
High-profile baseball players, comedians and pop stars have all been sanctioned after admitting to taking part in online gambling.
Last year, the government also rolled out a raft of new laws designed to tackle unlicensed gambling by outlawing the operation and use of unlicensed gambling sites, as well as their promotion through banner ads, affiliates and social media posts.
Japan also reached out to 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.
Although there is clearly a strong appetite for online gambling among Japan’s citizens, the government has taken a strong stance against the sector, shutting down any talks of regulation and instead tightening oversight due to concerns surrounding the social harms caused by iGaming.
In comparison, the country’s Prime Minister, Sanae Takaichi, is a strong advocate for the potential of integrated resorts to stimulate economic growth, and a roadmap has now been set out for a new round of applications for local governments interested in hosting a resort.
Japan’s first casino, currently being developed by MGM Resorts International and Orix Corporation, is set to open in 2030.
iGaming Expert Analysis: We have long called for fresh ideas in tackling the black market and Japan’s action certainly sees an element of this as the country looks to hone in on PSPs, which are seemingly a tangible target in a battle against an elusive opposition.
