Illegal offshore gambling has become a growing problem in Japan, with billions flowing out of the country despite strict laws. A new report reveals just how widespread the issue has become and why enforcement alone is not keeping pace.
Good to know
- Japanese bettors spent around $44 billion on illegal offshore sites.
- Legal domestic lotteries brought in only a fraction of that amount.
- Arrests linked to illegal online gambling jumped 160% in 2024.
A Tokyo-based nonprofit has shed light on Japan’s massive underground gambling economy. According to a fresh report from the Council for Sports Ecosystem Promotion, an estimated $44 billion (6.45 trillion Yen) has been funneled into illegal offshore betting markets by Japanese residents.
The report, based on data gathered from international betting firms and jurisdictions where sports gambling is legal, highlights the dramatic rise in betting activity—particularly on domestic sporting events.
Over one trillion Yen has reportedly been wagered on local games alone, a striking contrast to Japan’s limited legal options for gambling. Public sports lotteries, which are allowed under the law, only managed to generate 133 billion Yen in 2024.
Illegal Betting Outpaces Legal Markets
Japan’s gambling laws are among the strictest in the world. Despite this, enforcement measures have not stopped the industry’s growth. The report arrives shortly after a scandal involving more than a dozen players in Nippon Professional Baseball (NPB), some of whom have now been referred to prosecutors for illegal betting activity.
Even with the threat of prison time or fines reaching 500,000 Yen ($3,400), many Japanese continue to access illegal online casinos. Social media and online platforms have played a big part in this. Ads in Japanese now regularly promote offshore casinos, helping to fuel the growing interest.
More Arrests but Bigger Problems
The number of arrests connected to illegal betting websites soared 160% in 2024. However, the increase in law enforcement action has not reduced the size of the market. Widespread access to Japanese-language betting sites and constant visibility across media platforms continue to make these services easy to reach.
The Council for Sports Ecosystem Promotion suggests that the current legal framework is outdated. Without updated laws or a regulated market, the gap between what is allowed and what people are doing is widening quickly.
Japan: A Huge Market
A separate report released earlier this year by the National Police Agency estimated that around 3.37 million people in Japan have participated in online gambling. According to The Asahi Shimbun, which reported on the findings, the survey is believed to be the first of its kind in the country. It also revealed that gamblers using online casinos place bets totaling roughly JPY1.24 trillion ($8.39 billion) annually.
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