Online gambling in Japan

In Japan, gambling activities are regulated under the Penal Code. Online gambling also falls within the scope of this regulation. Accessing and playing foreign online casinos from Japan constitutes illegal gambling under the Japanese Penal Code, even if the casinos operate legally overseas.

Until recently, there were no specific laws regarding online gambling, and enforcement against online casinos wasn’t as strict as it is now. Enforcement against users was also limited. The legal requirements for businesses providing gambling-related services and payment service providers also weren’t clearly regulated.

In recent years, enforcement against online casinos has intensified, and the National Police Agency (NPA) is actively cracking down on users of online casinos. There have also been several amendments to laws that relate to online gambling.

Business operators providing services related to online gambling, payment services in connection with gambling and even ISPs may be affected by the amended act.

This newsletter outlines recent legal amendments and regulatory trends affecting online gambling.

 

Anti-Gambling Act

Although there was no specific law that exclusively regulated online gambling, the Basic Act on Countermeasures Against Gambling Addiction (the Anti-Gambling Act) aimed to prevent the spread of gambling.

The Anti-Gambling Act basically imposes obligations on the national and local governments to raise public awareness regarding the illegality of gambling. Following its amendment in September 2025, the Act now prohibits:

• presenting websites or programs (applications) that provide access to illegal online gambling (including online casinos) to unspecified persons in Japan; and
• disseminating information that induces participation in illegal online gambling to unspecified persons in Japan.

The government has also created the Basic Plan for Promoting Measures Against Gambling Addiction. The latest version, adopted in March 2025 (the 2025 Basic Plan) outlines these measures in relation to paying money to online casino sites:

• The NPA, the Financial Services Agency (FSA), and the Ministry of Economy, Trade and Industry (METI) will collaborate to issue warnings to businesses to suppress remittances and credit card payments to online casinos.
• METI will share information with credit card issuers and international card brands to request measures such as eliminating online casino operators from the credit card payment network.

Although the 2025 Basic Plan isn’t legally binding, Japanese authorities are actively working with industry bodies and encouraging voluntary cooperation. Seeking legal advice is recommended when receiving cooperation requests from authorities.

 

Payment Services Act

In June 2025, the Payment Services Act (PSA) was amended. The amended act is scheduled to come into effect within one year. The purpose of the amendment is to update legal regulations concerning crypto-assets, stablecoins and fund transfer services (shikin Idougyou) (FTS), in response to the advancement of financial digitalization, ensuring user protection and promoting innovation. The new rules for FTS are related to online gambling websites, introducing stricter regulations on overseas FTS.

Under the current PSA, if the FTS falls under the payment collection services (shuno-daikou) (PCS), a service for receiving funds from a debtor, commissioned by the creditor, the FTS isn’t regulated, unless the services fall under certain types. In the case of cross-border PCS, it’s basically not regulated at all. And in practice, the FTS license isn’t required for cross-border PSC.

But the current legal framework has faced international criticism for failing to address money laundering risks and lacking sufficient user protection. In response to the criticism, the PSA has been amended.

Under the amended PSA, cross-border PCS conducted by parties not involved in the transactions that causes the funds transfer are classified as FTS (regardless of whether the transfer is inbound or outbound) and the FTS license will be required, unless deemed low-risk by Cabinet Office Ordinance.

The following cases are expected to be exempted from regulation as low-risk PCSs:

• where the platformer is involved in the underlying transaction;
• in the case of escrow service;
• where the PCS provider has economic unity with the recipient; and
• where the service is already regulated under other applicable laws.

The Cabinet Office Ordinance has not yet determined, and we're unsure when it will be published. Businesses providing such services should monitor the discussion for such Cabinet Office Ordinance and prepare for licensing, if necessary. 

If the FTS license is required, the businesses need to comply with anti-money laundering obligations in accordance with the Act on Prevention of Transfer of Criminal Proceeds.

 

Access limitation to online gambling sites

The Ministry of Internal Affairs and Communications (MIC) is considering introducing regulations to restrict access to online casino websites. The 2025 Basic Plan identifies access as problematic, and MIC is expected to propose obligations for Internet Service Providers (ISPs) to block access to illegal gambling sites.

Although no specific legislation has been enacted, it’s expected that MIC will decide how they will proceed with this matter in 2025.