Japanese Government Announces Plans for Wide-Ranging Actions Against Illicit Internet Gambling Operations
Japanese Government Cracks Down on Online Casinos Amid Concerns Over Addiction and Illegal Activities
The Japanese government is taking decisive action against online casinos, following a surge in gambling addiction and illegal activities associated with internet-based gambling. According to The Japan News, an expert panel was convened by the Ministry of Internal Affairs and Communications last month to discuss potential blocking measures.
At the end of April 2025, the panel proposed that access to illegal online casinos be prevented through blocking mechanisms. These measures aim to protect individuals, particularly younger generations, from the dangers of online gambling.
The ruling Liberal Democratic Party (LDP) has also proposed revisions to a central framework law targeting gambling addiction. Under these proposed changes, internet service providers would be legally obligated to refrain from advertising illegal online casinos, while affiliate sites that refer users to gambling portals would be banned. Furthermore, credit card payments to certain providers and youth protection filter software would be strengthened.
Approximately 3.37 million people in Japan have participated in online casinos despite the ban, according to the National Police Agency. The annual betting volume amounts to over 1.2 trillion JPY (approximately 7.6 billion EUR). Many younger people are unaware that participation is illegal, and 46% of affected individuals have incurred debt due to gambling. The easy availability of gambling via smartphones accelerates dependency and makes it difficult to escape.
Experts agree that over 60% of users recognize their addiction. But the immediate access provided by smartphones accelerates this descent into dependency and simultaneously makes it difficult to exit.
"They immerse themselves in [online casino gambling] as if they were playing a video game and quickly become addicted," says Takanobu Matsuzaki, head of the psychiatric department of the National Hospital Organization Kurihama Medical and Addiction Center. "Since access to online casino websites is easily possible via smartphones, it is difficult to treat them by denying access."
Technological solutions such as AI-based filter software like i-FILTER by software developer Digital Arts are expected to help block access to gambling sites in the future. The expert panel is currently examining whether this is legally enforceable for online casinos, similar to measures currently in place for child pornographic content. An interim report on the feasibility of these measures is expected by summer 2025.
However, the constitutional protected telecommunications secrecy could pose a significant hurdle. Previous blocking attempts have failed due to these concerns, leading to discussions about alternative measures such as voluntary blocks by foreign providers or strengthened international cooperation.
While Japan is still debating the blocking of illegal online casinos, other countries have already implemented more far-reaching measures. Germany, Austria, the United Kingdom, Norway, Denmark, and Australia all have methods to block unlicensed providers, limit payment streams, and prohibit affiliate marketing.
The recent scandals involving celebrities and professional athletes caught engaging in online gambling have intensified pressure on the Japanese government to address this issue. In comparison to other countries, Japan's approach is unique in its strict prohibition and focus on public awareness, while other countries have more nuanced regulatory frameworks that balance prohibition with licensed operations.
- What if the Japanese government also considers implementing policies similar to those in Germany, Austria, the United Kingdom, Norway, Denmark, and Australia, such as blocking unlicensed providers, limiting payment streams, and prohibiting affiliate marketing, to combat the issue of illegal online casinos?
- Could the ongoing discussions about technological solutions like AI-based filter software, such as i-FILTER, lead to a more effective crackdown on online casinos in the banking-and-insurance and finance industry?
- As Japan debates the blocking of illegal online casinos, it remains to be seen whether these measures will be effective in reducing gambling addiction, especially among younger generations, in light of the constitutional protected telecommunications secrecy and the challenges it poses.
- Interestingly, while Japan has a strict prohibition on online casinos, other countries have more nuanced regulatory frameworks that combine prohibition with licensed operations, raising questions about the effectiveness of Japan's approach compared to these countries.
