The Persistent Flood of Online Gambling: 3.3 Million Japanese Users Undeterred
Japanese Administration Intends to Implement Wide-Ranging Strategies Against Unlawful Online Gambling Establishments
In the face of a skyrocketing number of gambling addicts and the shady dealings sparked by illicit gaming, the Japanese government is vehemently discussing severe action against online casinos. These discussions are widely reported, including by the Japanese daily paper The Japan News.
At the end of April 2025, the Ministry of Internal Affairs and Communications called an expert panel to mull over the possibility of barring such sites. This move would effectively prevent access to illegal online casinos.
The ruling Liberal Democratic Party (LDP) is also keen on revamping a key law to combat gambling addiction. The plan involves legally obligating internet service providers to thwart promoting illegal online casinos. Affiliate sites, which specifically steer individuals to gambling platforms, are also slated for prohibition. In addition, credit card payments to certain providers will be blocked, and youth protection software is to be fortified.
Millions of Users, Despite the Ban – Experts Alarmed
According to the National Police Agency, an estimated 3.37 million people in Japan have gladly yet illegally dipped their toes into online gambling: the annual betting volume stretches over 1.2 trillion JPY (approximately 7.6 billion EUR).
The younger generation seems particularly vulnerable, many of whom are oblivious to the law's restrictions. A survey mentioned by the magazine Sumikai reveals that 43.5% of respondents were unaware that online casinos are forbidden in Japan; 46% of those ensnared admitted already owing money due to their gambling habits.
It's concerning that a whopping 60% of users have admitted their addiction. The ease of gambling via smartphones accelerates their descent into a vicious cycle, all while making it challenging to break free.
They immerse themselves in [online casino gambling] as if they were engrossed in a video game and quickly become addicted. Since access to online casino websites is easily accessible via smartphones, it's challenging to treat them by restricting access. (Takanobu Matsuzaki, head of the psychiatric department of the National Hospital Organization Kurihama Medical and Addiction Center, The Japan Times)
## Constitutional Concerns Regarding Barring
Technological solutions, such as the AI-based filter software i-FILTER by software developer Digital Arts, are poised to help block access to gambling sites in the future. Although similar measures have previously been legal only for child pornography content, the expert panel is currently debating whether this is viable for online casinos. A preliminary report on the potential of these measures will be released by summer 2025.
The most significant challenges arise from constitutionally protected telecommunications confidentiality, which forbids internet service providers from scrutinizing data traffic. Past attempts to block have been thwarted exactly at this point. Consequently, ongoing discussions include alternative measures like voluntary barring by foreign providers or increased international cooperation.
Comparing Countries: How Others Confront Illicit Online Gambling
While Japan grapples with barring illegal online casinos, other nations have long enacted extensive measures. Many Western countries rely on targeted blocking merged with payment and advertising restrictions.
A rundown:
- Germany: Since the initiation of the new Gaming State Treaty 2021, German authorities systematically obstruct unauthorized providers using network barriers (DNS blocking). Moreover, payment channels are obstructed – for instance, through cooperation with banks and payment service providers.
- Austria: The Austrian gambling authority (GGL) employs IP and DNS blocking to thwart unlicensed providers. The Administrative Court validated these blocks in 2019.
- United Kingdom: The Gambling Commission teams up with internet providers to block illegal sites via DNS blocking. Furthermore, affiliate marketing is monitored, and payment service providers are made to halt suspicious transactions.
- Norway: Since 2024, internet providers can block DNS addresses of illegal gambling sites upon instruction from the Norwegian regulatory authority. Only state-licensed providers like Norsk Tipping are approved to operate. Moreover, information campaigns and fines against illegal operators are on the horizon.
- Denmark: The Danish Gambling Authority Spillemyndigheden had 49 illegal providers legally blocked in 2023, including sports betting and casino sites sans a Danish license. Since 2012, over 270 blocks have been imposed. The authority actively seeks new sites using automation and public reports and regularly initiates legal action. Providers must display the official license logo for legal operation.
- Australia: The Australian Communications and Media Authority (ACMA) wields extensive blocking powers. It frequently publishes public lists of blocked providers and requires cooperation from internet providers.
Celebrity Scandals magnify Pressure
A major motivator for the current debate about the risks of illegal online casinos was a series of scandals involving celebrities and professional athletes, caught illegally gambling online, such as comedians of the Yoshimoto Kogyo agency and various baseball players.
- In an effort to combat the rising issue of online gambling addiction and illicit activities associated with it, the Japanese government is considering severe action against online casinos.
- The discussions on restricting access to online casinos are widespread, with reports appearing in The Japan News and other general news outlets.
- The Ministry of Internal Affairs and Communications has called an expert panel to discuss the possibility of barring such sites, aiming to prevent access to illegal online casinos.
- The ruling Liberal Democratic Party plans to revise a key law to combat gambling addiction, mandating internet service providers to block the promotion of illegal online casinos.
- Affiliate sites, which steer individuals to gambling platforms, and credit card payments to certain providers will also be prohibited, with youth protection software set to be strengthened.
- Despite the ban, an estimated 3.37 million people in Japan have illegally participated in online gambling, with the annual betting volume exceeding 1.2 trillion JPY (approximately 7.6 billion EUR).
- Countries like Germany, Austria, the United Kingdom, Norway, Denmark, and Australia have long enacted extensive measures, such as network barriers, payment channel obstruction, and DNS blocking, to combat illegal online casinos.
