Online gambling remains illegal in Japan and offshore websites are widely used by millions. Officials admit the problem has become national in scope, as citizens keep using foreign casino services even after frequent raids. Japanese internet providers have tried to block some domains, yet these measures fall short because new addresses appear at a rapid pace.
At present, legal gambling is confined to pachinko halls, small lotteries, and state-run betting on horse or motor racing. Against this backdrop, the appeal of foreign-based online casinos has not faded. Even sites like Lucky 7 Even, launched abroad, are frequently cited by players for their accessibility and game variety, showing why Tokyo continues to struggle with curbing the digital overflow.
A Growing Plea for International Help
In June, Japan revised the Basic Act on Measures Against Gambling, increasing the penalties of the businesses that provide unregulated games. According to the updated legislation, it is now obvious that it is not allowed to host websites or applications that serve Japanese players. However, with the majority of these operators being located abroad, there is little influence on domestic enforcement.
To enhance the strategy, Tokyo has appealed to regulators in Malta, Curacao, the Isle of Man, Gibraltar, Canada, and a few more. The demand is simple: compel licensed businesses that they oversee to block Japanese userbase. According to the officials, unless the cooperation is received outside the country, the domestic cycle of addiction will remain uninterrupted.
The use of VPN makes the situation difficult. Virtual private networks conceal the location of the user and allow people to circumvent national limitations. Consequently, although international regulators can accede to the demands of Japan, the strong-willed players might still have the means of accessing offshore platforms.
Casino Resorts and Slow Progress
As far back as 2018, the National Diet of Japan approved a maximum of three casino resorts that were intended to be built in Japan. After more than seven years there is just one project underway. MGM Osaka is worth close to 9 billion dollars and is still in the development stage, likely to be ready by the end of this decade.
The other two licenses are still pending. The other area that made a formal bid was Nagasaki, supported by Casinos Austria. That scheme, worth more than 3 billion dollars, was defeated in late 2023 because of financing questions. After this, some low-profile talks have been made as to the possibility of reopening bidding, though no new applications have been processed.
The cautious and slow pace of Japan has sent away most of the largest casino chains all over the world. The Las Vegas Sands, Caesars Entertainment, and Wynn Resorts operators had been very keen previously. Most of them walked away frustrated at the delay and lack of clarity.
Balancing Tourism and Social Concerns
The Japanese government is in a fine line. On the one hand, authorities are interested in inviting foreign tourists to resorts of world quality. On the one hand, they have to safeguard citizens against gambling addiction. Such steps as the entrance fee of 6 000 yen, paid by all residents who visit a casino within 24-hours, evidence this attempt to discourage immediate play.
Nevertheless, the critics claim that the orientation on physical casinos does not contribute much in solving the digital issue. Gambling in the Internet is much more easily available and difficult to control than casinos on the ground. The fact that the government has gone to foreign regulators underscores the importance of the challenge.
Looking Ahead
The fact that Japan had decided to recruit international cooperation implies that internal instruments are not sufficient. The amount of offshore operators alone, and VPN workarounds, makes the total enforcement very difficult. The effectiveness of the campaign to be undertaken by Tokyo will depend on whether other jurisdictions will conform to pressure their licensees.
Meanwhile, Japan still struggles with its casino industry vision. The country is running the risk of losing global momentum as it has only one underway resort and there is not much clarity on the future bids. But the government seems to embark on a slow strategy, with financial expansion of licensed casinos accompanied by more stringent measures in regard to online platforms.
The result will not only define the gambling environment in Japan, but determine the attitude of other countries towards cross-border collaboration in digital gaming. When Japan manages to convince the regulators in other countries to do so, it might be used as an example in addressing the issue of illegal gambling over the Internet. In the meantime the nation is divided between the aspiration to develop and the necessity to tame addiction at home.