Millions of Japanese Playing at Illegal Online Casinos
LISTEN TO THIS ARTICLE:A recent survey by Japan’s National Police Agency (NPA) estimates that approximately 3.37 million people in the country have used offshore online casinos and that illegal gambling expenditures reach around ¥1.2 trillion annually.
The survey, published Thursday, also found that about 40% of users were unaware that online casinos are illegal in Japan.
This was the first time the police conducted an investigation into the use of online casinos in Japan. The survey took place from July to October last year and collected responses from 27,145 individuals aged 15 to 79.
According to the findings, 2% of respondents said they currently use online casinos, while 3.5% reported past use. Based on these percentages, the NPA estimates that Japan has around 1.97 million active online casino users and a total of 3.37 million people who have engaged in online gambling at least once.
Lack of Awareness and Gambling Addiction Risks
The survey found that roughly 60% of respondents were familiar with online casinos. Of those, 4.6% had visited casino websites, and three-quarters of them had placed bets. On average, online casino users spent approximately ¥630,000 per year.
Among those who had gambled, 39.8% did not realize that online casinos were illegal, while 43.8% of people who had never used them were also unaware of the law. Additionally, about 60% of users acknowledged concerns about their gambling addiction. Alarmingly, 46.2% of those who played online casino games reported borrowing money to continue gambling.
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Foreign Casino Sites Targeting Japan
The NPA also conducted a separate investigation into 40 overseas online casino sites that appear to cater to Japanese players. Between August last year and January this year, they found that only two of the sites explicitly stated that participation from Japan was prohibited. Meanwhile, eight of the websites were available exclusively in Japanese. Further analysis revealed that for half of these sites, more than 90% of users were located in Japan.
All 40 sites operate under foreign licenses, making them exempt from Japanese law. The NPA found that about 70% of them were licensed by the Curacao Gaming Control Board (GCB). Some websites even falsely claim to be legal, further misleading potential users.
To appeal to Japanese users, many overseas gambling operators create Japanese-language sites and omit clear warnings about illegality. Some use celebrities in advertisements or offer free demo versions of their games.
The survey found that 24% of online casino users first engaged with free demo casino games. In response, the NPA the agency is considering taking action against sites that use celebrities in their advertising, arguing that it could be classified as aiding and abetting a crime.
Furthermore, some websites that compare online gambling services have been spreading misinformation, by portraying the legality of online casinos in Japan as a gray area. Government agencies are now working to request the removal of this type of misleading content.
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