Unmasking the Digital Betting Underground: Japan's Online Casino Clampdown
Japan Contemplates Stringent Actions to Curb Illicit Online Gambling Operations
In a bid to curb the surge of gambling addicts and illegal activities, Japan's government is mulling over severe actions against online casinos, as reported by Japanese daily newspaper, The Japan News [Link in English].
At the tail-end of April 2025, the Ministry of Internal Affairs and Communications assembled an expert panel to deliberate the feasibility of blocking such sites, effectively preventing access to prohibited online casinos.
The ruling Liberal Democratic Party (LDP) aims to revise the central framework law for combating gambling addiction. The proposed changes seek to legally bind internet service providers to refrain from promoting such illegal online casinos. Affiliate sites targeting gambling portals will also be banned, alongside the blocking of credit card payments to specific providers. Implementing stronger youth protection filter software is also on the agenda.
Surprising User Base - Experts Warn of Addiction Risks
According to the National Police Agency, the estimated number of Japanese individuals engaging in online gambling, despite the ban, has soared to an astonishing 3.37 million. The annual betting volume amounts to over 1.2 trillion JPY (around 7.6 billion EUR).
Younger demographics appear to be the most vulnerable, with many unaware of the illegality of their actions. A survey cited by the magazine Sumikai [Link in English] revealed that 43.5% of respondents didn't know that online casinos are outlawed in Japan. A staggering 46% of affected individuals admitted to incurring debt through gambling addiction.
It is alarming that over 60% of users have acknowledged their addiction themselves. The ease of accessing gambling platforms via smartphones accelerates their dependence and, conversely, complicates the treatment process.
They become immersed in [online casino gambling] as if they were playing a video game, and quickly develop addiction. The accessibility of online casino websites through smartphones makes treatment difficult, as denying access becomes an elusive solution.- Takanobu Matsuzaki, Head of the Psychiatric Department of the National Hospital Organization Kurihama Medical and Addiction Center, The Japan Times
Legal Concerns Loom Over Blocking Measures
Technological solutions like the AI-based filter software i-FILTER by software developer Digital Arts are intended to help block access to gambling sites in the future. Such measures have so far only been legally enforceable for child pornographic content; the expert panel is currently assessing whether this is also applicable to online casinos. An interim report on the feasibility of these measures is expected by summer 2025.
The greatest obstacles lie in the constitutionally protected telecommunications secrecy, preventing internet service providers from inspecting data traffic. Past blocking attempts have faltered at this hurdle. Consequently, there are ongoing discussions about alternative measures such as voluntary blocks by foreign providers or intensified international cooperation.
Comparing Countries: How Do Others Address Illegal Online Gambling?
While Japan grapples with the blocking of illegal online casinos, other countries have already implemented wide-reaching measures. The majority of Western nations have relied on targeted blocking in conjunction with payment and advertising restrictions for years.
Here's an overview:
- Germany: Since the implementation of the 2021 Gambling State Treaty, German authorities consistently block unauthorized providers using network blocking (DNS blocking) [6]. Moreover, payment streams are cut off - for instance, via collaboration with banks and payment service providers [4].
- Austria: The Austrian gambling authority (GGL) employs IP and DNS blocking to halt unauthorized providers [7]. The Administrative Court confirmed the legality of these blocks in 2019 [7].
- United Kingdom: The Gambling Commission partners with internet providers to block illegal sites via DNS blocking [3]. Additionally, affiliate marketing is monitored, and payment service providers restrict suspicious transactions [4].
- Norway: Since 2024, Norwegian internet providers may, upon instruction from the Norwegian regulatory authority, block DNS addresses of illegal gambling sites [8]. Only state-licensed providers like Norsk Tipping are allowed to operate [8]. Meanwhile, information campaigns and fines against illegal operators are planned [8].
- Denmark: The Danish Gambling Authority Spillemyndigheden had 49 illegal providers legally blocked in 2023, including sports betting and casino sites without a Danish license [9]. Since 2012, over 270 blocks have been imposed [9]. The authority proactively seeks new sites using automation and public reports, and routinely initiates legal action [6]. Operators must display the official license logo for legal operation [9].
- Australia: The Australian Communications and Media Authority (ACMA) boasts extensive blocking capabilities. The authorities regularly publish public lists of blocked providers and require cooperation from internet providers [6].
The Countdown: Celebrity Scandals Amplify Pressure for Action
A series of scandals involving celebrities and professional athletes caught gambling online has served as a trigger for the current debate surrounding the perils of illegal online casinos. Among those implicated are comedians from the Yoshimoto Kogyo agency and several baseball players [10].
- In an attempt to combat rising rates of gambling addiction and illicit activities, the Japanese government is considering stringent actions against online casinos, as reported by The Japan News.
- As part of these efforts, the Ministry of Internal Affairs and Communications is contemplating blocking access to prohibited online casinos by implementing AI-based filter software.
- The Liberal Democratic Party aims to revise the central framework law for addressing gambling addiction, which would legally binding internet service providers to refrain from promoting illegal online casinos.
- Concerning Germany, after the 2021 Gambling State Treaty, German authorities consistently block unauthorized providers using network blocking (DNS blocking) and cut off payment streams from banks and payment service providers.
- A series of scandals involving celebrities and professional athletes caught gambling online has intensified pressure for action against illegal online casinos in Japan, serving as a catalyst for the current debate.
