Japan Online Casino Laws: A Comprehensive Legal Overview

Legal Status of Online Casinos in Japan

In Japan, gambling is generally prohibited under the Penal Code (Chapter 23). Specifically, Article 185 criminalizes the act of gambling, and Article 186 sets penalties for habitual gambling or running a gambling facility. This prohibition includes both physical and online gambling unless exceptions apply. As of 2025, online casinos remain illegal for Japanese residents, regardless of whether the platform is operated domestically or offshore.

Exceptions: Publicly Authorized Gambling

Japan permits a limited number of gambling activities under specific laws. These include:

Pachinko and Pachislot – While technically not classified as gambling, these operate in a legal grey area through prize exchange systems.
Public Sports – Horse racing, bicycle racing (keirin), powerboat racing, and motorcycle racing are legal under the Public Sports Law.
Lotteries – Managed by local governments and regulated under the Lottery Act (Takarakuji Law).

These exceptions are strictly regulated and only available through authorized operators.

The Rise of Offshore Online Casinos

Many Japanese players access online casinos that are licensed in jurisdictions such as Curacao, Malta, or the Isle of Man. These platforms often operate in Japanese language, accept yen or cryptocurrency, and target Japanese customers. However, under Japanese law, using these services is technically illegal. There have been cases where Japanese players and promoters of such casinos were arrested, although enforcement is inconsistent and relatively rare.

Legal Loopholes and Ambiguities

Japan has not clearly legislated against the act of playing on offshore online casinos, which creates a grey zone. Most criminal cases have targeted those who operate or promote such services within Japan. For example, affiliate marketers who run Japanese websites advertising online casinos may face legal consequences under the Unfair Competition Prevention Act or Penal Code.

Integrated Resorts (IR) and Casino Legalization

Japan has taken steps to legalize brick-and-mortar casinos through the Integrated Resort (IR) Promotion Act (2016) and the IR Implementation Act (2018). These laws allow the development of large-scale casino resorts in selected locations, combining gambling with tourism and convention centers. As of now, Osaka has been approved for the first IR project, scheduled to open around 2030.

However, these laws do not extend to online casinos. The IR laws strictly regulate land-based casino operations and do not provide a framework for digital gambling.

Penalties for Illegal Online Gambling

Under Japanese law:

Players can face up to ¥500,000 fine or up to 3 years imprisonment.
Operators and promoters can face significantly harsher penalties, including imprisonment up to 5 years or more.
Habitual offenders may receive more severe sentencing under Article 186.

Despite these laws, Japanese authorities tend to focus on operators rather than individual users, partly due to the challenges of enforcing cross-border jurisdiction.

Cryptocurrency and Online Gambling

Cryptocurrency is commonly used on Japanese-facing online casinos. While crypto itself is legal and regulated by the Financial Services Agency (FSA) under the Payment Services Act, using it for online gambling is still subject to the same legal risks. Casinos accepting Bitcoin or other tokens do not avoid the gambling prohibitions under current laws.

Government Enforcement Trends

Japanese authorities have occasionally cracked down on online gambling, with notable arrests involving:

Casino streamers promoting illegal platforms.
Affiliates running Japanese-language casino review sites.
Players involved in high-profile cases.

However, enforcement remains selective and focused more on large-scale operations than on casual individual play.

Future Outlook

The Japanese government shows no signs of legalizing online casinos in the near future. The focus remains on the successful rollout of Integrated Resorts. If IRs prove to be economically beneficial, there may eventually be pressure to regulate online gambling. Until then, online casinos will remain a legally risky activity for both operators and users within Japan.

Conclusion

Online casinos are currently illegal in Japan, despite growing interest and participation. While the law targets operators more aggressively than players, both parties face legal risk. The introduction of land-based casinos under the IR policy is unlikely to affect the status of online gambling in the short term. Players and affiliates should be aware of the legal implications before engaging in any form of online casino activity in Japan.