Japan’s Ongoing Crackdown on Online Casinos: What Players and Operators Must Know
Legal Framework Surrounding Online Gambling in Japan
Online casinos are currently illegal under Japanese law. The Criminal Code of Japan prohibits most forms of gambling, with a few exceptions such as state-run lotteries, horse racing, bicycle racing, and certain motorboat and motorcycle races. Pachinko operates in a legal gray area and is tolerated due to its classification as an amusement activity rather than gambling. However, digital casinos operated offshore but accessed by Japanese residents fall into a legal loophole that authorities are now aggressively targeting.
The government has taken a stricter stance in recent years, attempting to close these loopholes by reinforcing legal interpretations that accessing overseas online casinos from within Japan constitutes illegal gambling. This policy has led to a growing number of arrests and increased public awareness of the risks involved.
Recent Crackdowns and Arrests
The National Police Agency (NPA) and local law enforcement across Japan have intensified their efforts to suppress online casino activities. In recent crackdowns, authorities have targeted both operators and players. Japanese nationals who have participated in real-money online casino gambling have been arrested and prosecuted under Article 185 of the Penal Code, which criminalizes the act of gambling regardless of the operator’s geographic location.
A notable trend is the targeting of intermediary agents—those who help Japanese users deposit funds to and withdraw winnings from overseas online casinos. These individuals are now being considered accessories to criminal activity and face significant legal consequences.
Government’s Motivation and Policy Direction
The Japanese government’s harsh response is influenced by concerns over addiction, financial crimes such as money laundering, and the rise in unauthorized transactions associated with cryptocurrency payments. With the launch of integrated resorts (IRs) featuring legal land-based casinos in areas like Osaka and Yokohama, the government is under pressure to create a clean and tightly controlled gambling environment. Allowing online gambling to flourish would contradict this vision and invite criticism both domestically and internationally.
Another driver of the crackdown is the rapid rise of affiliate marketing that promotes illegal casinos to Japanese consumers through YouTube, blogs, and social media. These affiliates often promote bonuses and deposit offers that lure in unsuspecting users, leading to further regulatory pressure on digital platforms and advertisers.
How Offshore Casinos are Responding
Major offshore operators targeting Japan, such as those licensed in Curaçao or the Philippines, are scrambling to maintain their presence while evading detection. Many are shifting to cryptocurrency-only platforms to reduce paper trails and transaction records. They also rebrand frequently and operate under multiple mirror domains to circumvent IP blocks and local investigations.
Despite these efforts, their legal exposure remains high. Even players who only use VPNs to access offshore platforms are not immune to arrest under Japan’s strict gambling laws.
Risks for Japanese Players
For the average player, the risks of accessing online casinos from Japan are growing rapidly. These include:
- Arrest and prosecution for illegal gambling
- Confiscation of winnings
- Potential bans from legal gambling venues in Japan
- Identity theft or fraud from unregulated operators
- Inability to recover funds in case of disputes
Players should also be aware that even if a site claims to be “legal” because it is licensed offshore, this does not make it lawful to use from within Japan. Japanese law focuses on the location of the user, not the operator.
Outlook for the Future
Japan’s online casino crackdown is expected to intensify as the country prepares for its first integrated resort openings. Law enforcement will likely continue to prioritize cases involving high-rolling gamblers, financial facilitators, and affiliates promoting illegal platforms. While there are discussions around regulating and legalizing certain forms of online gambling in the future, such changes are unlikely in the near term due to strong political opposition and societal concern about gambling addiction.
For now, both casual players and gambling operators should treat online casino activity in Japan as a high-risk endeavor with serious legal implications.
