Japan is considering new legislation to ban online casinos and strengthen efforts to prevent gambling-related harm. Lawmakers from both the ruling and opposition parties have agreed to submit a bill during the current Diet session to revise existing laws and clearly prohibit the operation and promotion of online casino platforms.

The move follows consultations between eight political parties and parliamentary groups, including the Liberal Democratic Party, Komeito, the Constitutional Democratic Party of Japan, the Japan Innovation Party, the Democratic Party for the People, the Japanese Communist Party, Reiwa Shinsengumi, and Yushi no Kai.

The proposed bill aims to ban the opening and operation of online casinos and restrict advertisements or links to such platforms through social media and other channels. It is expected to be submitted to the House of Representatives’ Committee on Cabinet later this month and is likely to pass before the end of the current session.

No penalties, but stronger enforcement

The bill does not include specific penalties, but it seeks to close legal loopholes and make it easier for authorities to act. The government also plans to support communication providers in removing online casino-related ads and posts when requested by the police.

The Internal Affairs and Communications Ministry has set up a panel of experts to explore ways to block access to casino websites. Discussions have begun on methods to forcibly stop connections to these platforms.

Millions using illegal sites unknowingly

While online casinos are legal in some other countries, using them from within Japan is illegal under the country’s Penal Code. However, many users remain unaware of this. A survey published by the National Police Agency in March showed that about 3.37 million people in Japan had accessed online casinos, with total annual bets reaching around ¥1.2 trillion (around $8.9 billion). Of these users, 31% were in their 20s and 27% in their 30s.

To address the lack of public knowledge, the revised bill calls on both central and local governments to run awareness campaigns informing people that online casinos are illegal. All eight parties involved in the discussions have agreed to complete internal procedures by the end of the month and submit the bill promptly.

Bill timed with Osaka casino launch

The bill is being considered at a time when Japan is preparing to open its first land-based integrated resort (IR) with a casino, MGM Osaka, expected to launch in late 2030. The JPY1.27 trillion (approx. $9.4 billion) project, led by MGM Resorts International and Japan’s Orix Corporation, recently held a major groundbreaking ceremony attended by government and corporate representatives. As Japan moves forward with legal casinos to boost tourism and regional economies, lawmakers aim to clearly ban online casinos to prevent gambling-related harm.

Surge in illegal overseas sports betting

Meanwhile, concerns around illegal online gambling continue to grow in Japan. A recent report by the Tokyo-based Council for Sports Ecosystem Promotion revealed that residents in Japan placed an estimated ¥6.45 trillion ($44 billion) in bets last year on overseas sports gambling websites — which are illegal under Japanese law. Of this, around ¥1 trillion ($6.8 billion) was wagered on domestic sports such as baseball, football, and basketball, raising concerns about match-fixing and athlete safety.

The report highlighted a sharp rise in the illegal cross-border sports betting market and noted that low public awareness and widespread access through smartphones have made enforcement difficult. In 2024, a record 279 people were arrested in Japan for involvement with online betting sites. Authorities are now pushing for greater international cooperation and public education to tackle the issue.