Japan cracks down on offshore online casinos, urges foreign regulators to block access

Japan is intensifying its efforts to combat illegal online gambling, calling on eight foreign jurisdictions to block access to licensed casino websites that target Japanese residents. The move forms part of a broader crackdown as the country prepares for the 2030 opening of MGM Osaka, its first integrated resort.

The Japanese government has reached out to authorities in Canada, Costa Rica, Georgia, Malta, Anjouan Island in the Comoros, Curaçao, the Isle of Man, and Gibraltar, urging them to prevent their licensees from serving users located in Japan. Officials say many of these websites offer services in Japanese and accept yen, creating a misleading impression of legitimacy.

Under Japanese law, gambling on unlicensed overseas websites is a criminal offense, regardless of the operator’s legality abroad. While enforcement against foreign platforms has proven challenging, the authorities have moved swiftly to target domestic users and intermediaries such as payment processors and social media promoters.

A recent analysis of 40 online casino sites available in Japanese found that all were licensed, with nearly 70% registered in Curaçao. Only two of the websites explicitly stated that Japanese users were prohibited from accessing them, while six received all their web traffic from Japan. Police estimate that roughly 1.24 trillion yen, equivalent to $8.6 billion, is wagered annually by Japanese users on such platforms.

According to law enforcement, around three million people in Japan have gambled on foreign websites, many of which are easily accessible via smartphones and personal computers. These services fall outside Japan’s legal gambling framework, which is limited to state-regulated lotteries and betting on select motor sports and horse racing.

The recent crackdown follows media reports linking professional athletes and celebrities to online gambling activity. In response, lawmakers are expected to soon pass legislation banning domestic websites from directing users to offshore casino operators.

A government official said the outreach to foreign regulators is part of a long-term plan to curtail the influence of illegal gambling in Japan. Once the new law is enacted, the government intends to reiterate its requests to the eight jurisdictions.

The move comes as Japan prepares to launch MGM Osaka, a $10 billion casino resort development backed by MGM Resorts International. Authorities say safeguarding the legal gambling framework is essential to ensuring the success of the project and maintaining public trust.