Japanese Administration Prepares Wide-Ranging Strategies to Combat Illicit Internet Gambling Sites

A Tidal Wave of Gambling in Japan: 3.3 Million Players Ignore Ban, Government Mulls Drastic Measures

Japanese Administration Prepares Wide-Ranging Strategies to Combat Illicit Internet Gambling Sites

In the Land of the Rising Sun, a whopping 3.37 million people are bucking the system and participating in online casinos despite the ban, according to the National Police Agency. The annual betting volume is a staggering over 1.2 trillion JPY (around 7.6 billion EUR).

The government is now considering a range of drastic measures to clamp down on this burgeoning illegal activity, with rapid increases in gambling addicts and associated illegal activities being the main drivers. Reports from The Japan News highlight this pressing concern [Link in English].

At the end of April 2025, an expert panel convened by the Ministry of Internal Affairs and Communications deliberated on the possible blocking of such sites to prevent access to illegal online casinos. The ruling Liberal Democratic Party (LDP) plans to revise the central framework law for combating gambling addiction, with the intention of legally obliging internet service providers to avoid advertising illegal online casinos.

Additionally, so-called affiliate sites that specifically direct users to gambling portals are to be banned, and credit card payments to certain providers are to be blocked, while youth protection filter software is to be strengthened.

A Blind Eye to the Law: Over Half of Users Unaware Online Gambling is Unlawful

The prevalence of addiction among online gamblers is a major cause for concern. According to a survey mentioned in the magazine Sumikai [Link in English], 43.5% of respondents were unaware that online casinos are banned in Japan, and 46% of those affected admitted to already having incurred debts through gambling.

Moreover, over 60% of users have recognized their addiction themselves, and the easy availability of online gambling via smartphones accelerates the slide into addiction and simultaneously makes it more challenging to quit. As head of the psychiatric department of the National Hospital Organization Kurihama Medical and Addiction Center, Takanobu Matsuzaki, puts it, "They immerse themselves as if they were playing a video game and quickly become addicted. Since access to online casino websites is easily possible via smartphones, it is difficult to treat them by denying access." - The Japan Times

Constitutional Controversies Surrounding Blocking Measures

Technological solutions, such as AI-based filter software like i-FILTER by software developer Digital Arts, are meant to help block access to gambling sites in the future. The legal enforceability of these measures has been limited to child pornographic content thus far, as the expert panel examines the feasibility of applying them to online casinos. An interim report on the issue is expected by summer 2025.

Constitutionally protected telecommunications secrecy, which prohibits internet service providers from inspecting data traffic, poses considerable hurdles and is a fundamental concern in the debate. Previous attempts to implement blocking measures have failed due to this specific point, leading to discussions about alternative measures such as voluntary blocking by foreign providers or strengthened international cooperation.

Comparing Countries: stringent Measures Worldwide

While Japan is still grappling with the issue of online gambling, several other countries have already implemented stringent measures to combat it. Countries worldwide rely heavily on targeted blocking in combination with payment and advertising restrictions.

A few examples include:

• Germany: Since the implementation of the new Gambling State Treaty 2021, German authorities systematically block unlicensed providers using network blocking (DNS blocking). In addition to this, payment streams are interrupted through cooperation with banks and payment service providers.
• Austria: The Austrian gambling authority (GGL) employs IP and DNS blocking to block unlicensed providers.
• United Kingdom: The Gambling Commission works with internet providers to block illegal sites via DNS blocking while also closely monitoring affiliate marketing and payment service providers.
• Norway: Internet providers in Norway can block DNS addresses of illegal gambling sites upon instruction from the Norwegian regulatory authority. Only state-licensed providers like Norsk Tipping are allowed to operate. Additionally, information campaigns and fines against illegal operators are planned.
• Denmark: The Danish Gambling Authority Spillemyndigheden successfully imposed 49 illegal providers' blocks in 2023, including sports betting and casino sites without a Danish license. The authority has implemented 270 blocks since 2012. It actively searches for new sites using automation and routinely initiates legal action.

Several other countries, including Australia, have similar measures in place to combat illegal online gambling.

The Scandal that Sparked the Debate

A series of scandals involving celebrities and professional athletes caught gambling online triggered the current debate about the dangers of illegal online casinos in Japan. This includes comedians from the Yoshimoto Kogyo agency and several baseball players.

While the debate is far from over, it's clear that Japan faces a significant challenge in addressing the infiltration of online gambling and the associated problems it brings. The government's proposed measures seem to indicate a firm commitment to get control of the situation. Whether the proposed blocking measures will hold up under constitutional scrutiny remains to be seen.

1. "What about the financial implications of this rampant online gambling in Japan?"
2. "Cybersecurity measures might need to be strengthened as well, to tackle the growing number of cybercrimes linked to online gambling."
3. "Apart from gambling, what's the impact on the lifestyle and well-being of these 3.37 million people who are illegally engaging in online casinos?"
4. "Fashion-and-beauty industries could take a hit if these gambling addicts start spending less on non-essential items."
5. "The food-and-drink sector may also suffer, as addicted individuals prioritize their gambling interests over regular meals and social gatherings."
6. "Investing in stocks, bonds, or other financial instruments might see a boost as gamblers seek alternative ways to channel their dollars."
7. "Amidst this discussion, it's crucial to consider the role of personal-finance education and self-development in helping individuals make responsible decisions and avoid succumbing to gambling addictions."

Rapid technological advancements are causing a shift in the way we consume news as well. With a click of a button, you can stay updated on general-news, sports, weather, or even the ongoing saga of illegal online gambling in Japan.

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