A new report from Japan has found that Japanese residents are spending an estimated $44 billion (6.45 trillion Yen) on illegal offshore betting.
Key Takeaways:
- A new report from Japan has found massive underground illegal betting activity in the country
- Gambling is prohibited in Japan, and comes with severe penalties for individuals found to be illegally involved
- Despite these laws, cases continue to climb, with a massive 160% spike year-over-year in arrests in 2024
The report was released on Wednesday by a Tokyo-based nonprofit.
The Council for Sports Ecosystem Promotion reported that there has been explosive growth in the industry in recent years, including over one trillion Yen being wagered on domestic events alone.
According to the study, as outlined by Japan’s largest and oldest English language paper The Japan Times, the findings are based on data from “overseas market research firms and licensed betting operators in jurisdictions where sports gambling is legal,” and come in the wake of a recent scandal that saw over a dozen Nippon Professional Baseball (NPB) players caught illegally gambling.
NPB has come out and said that 14 players across 7 teams have been caught illegally gambling on online casinos.
— Gaijin Baseball/外国人野球 (@GaijinBaseball) February 27, 2025
Names have not been released as of this time, and according to NPB Secretary General Katsuhiko Nakamura, they probably won't unless the player is suspended. pic.twitter.com/lcjEdQg7Pr
That includes a pair of players who have recently been sent to prosecutors for allegedly participating in said illegal overseas gaming.
State of gambling in Japan
Notably, gambling is strictly prohibited in Japan according to the Japan Times, with a few key exceptions. That’s of particular interest given that compared to the 5.43 trillion yen bet on sports outside of Japan, the country’s legal sports lotteries generated a measly 133 billion yen in the fiscal year of 2024.
Japanese residents caught using online casinos can also face harsh penalties, including those up to 500,000 Yen ($3,400) or three years in prison.
Those punishments don’t appear to be much of a deterrent; however, according to recent reports, there has been an enormous 160% jump year-over-year in arrests in 2024 for involvement with illegal online betting sites.
Access in particular has been a major driving force above all for the enormous leap in cases, with reports of surging visibility and advertisements for Japanese-language websites according to the Times, including ads across social media sites and other media outlets.
Japan is not alone in its battle against illegal gambling. Last month a report by Bloomberg found that unlicensed sportsbooks and casinos accounted for nearly two-thirds of 2024’s gross gaming revenue in the United States.
