Japan launches a new strategy to combat the black market

(AsiaGameHub) –   Japanese authorities are deploying every available measure to curb illegal online gambling, which saw a concerning surge in participation during 2025.

The National Police Agency (NPA) disclosed that it took legal action against 317 people in 2025, marking the highest number since record-keeping started in 2018.

Online casinos were involved in the bulk of these cases, with 158 incidents identified, leading to the arrest of 221 individuals.

While online gambling is entirely banned in Japan, estimates suggest more than 3 million people participate in illicit online casino betting yearly, with annual wagers reaching approximately ¥1.2 trillion (£6.2m).

The NPA also noted it has pursued individuals who enable access to illegal gambling operations.

Across eight separate cases, 25 people were apprehended for acting as operators, affiliates, or payment processors for online gambling networks.

Specifically, four were arrested for advertising overseas casinos on video streaming platforms.

Additionally, two payment service providers (PSPs) involved in laundering gambling funds were arrested and charged with controlling criminal proceeds.

Since many online casinos used by Japanese players are based abroad, focusing on intermediaries like affiliates and PSPs could prove an effective tactic for officials combating the black market.

If successful, this approach might introduce a novel enforcement strategy for other jurisdictions aiming to effectively counter black market threats.

Beyond increased enforcement, the NPA linked the higher detection rate to growing public awareness of gambling’s illegality, fueled by several prominent cases involving celebrities.

Well-known baseball players, comedians, and pop stars have all faced penalties after confessing to online gambling.

In the previous year, the government also implemented a series of new laws to combat unlicensed gambling by prohibiting the operation and use of such sites, along with their promotion via banner ads, affiliates, and social media.

Japan has also contacted regulators in jurisdictions including Malta, Curaçao, the Isle of Man, and the Philippines, requesting they block Japanese users or eliminate Japanese-language support from gambling services.

Despite evident public demand for online gambling, the government maintains a firm opposition to the sector, dismissing discussions about regulation and increasing oversight due to worries about the social damage linked to iGaming.

Conversely, Prime Minister Sanae Takaichi strongly promotes integrated resorts as a driver for economic growth, and a framework has been established for a new application round for local governments seeking to host a resort.

The nation’s first casino, a joint project by MGM Resorts International and Orix Corporation, is scheduled to launch in 2030.

iGaming Expert Analysis: We have consistently advocated for innovative approaches to address the black market. Japan’s measures reflect this, particularly its focus on PSPs, which represent a concrete target in the fight against a difficult-to-pin-down adversary.