Japan - online restrictions and IR

Overview

In Japan, gambling is regulated by the Criminal Code: organizing and participating in illegal games, including online casinos, are prohibited. Exceptions are strictly limited state formats (lotteries, as well as pari-mutuel on racing, cycling, motorcycle and motor boats). Since 2018, the country has chosen a narrow model of legalizing casinos - only inside integrated resorts (IR) with rigid social barriers. In 2025, the authorities further tightened the fight against online casinos: from blocking to banning advertising and landing pages.

Online mode: what is prohibited and what is allowed

Banning online casinos

Access to foreign online casinos from Japan is interpreted as a violation of Japanese criminal law, even if such a site is legal in its jurisdiction. In 2025, police and regulators began active sweeps of aggregator/referral sites and demanded the removal of ads and posts leading to online casinos.

Valid exceptions online

Online participation is allowed only in state. products: lotteries and pari-mutuel for state competitions (horses, keirin cycling, motorcycle racing, motor boats) - these verticals are managed by the state/municipalities and self-regulatory bodies under their control.

Locks, payments, and ads

In 2025, the Department of Home Affairs and Communications (MIC) considered technical blocking of access to online casinos; in parallel, the NPA (police) began to request the removal of content and advertising leading to such sites, including social networks and influencers. In a number of cases, detentions of operators of "leading" sites followed.

IR (Integrated Resorts): How the legal casino model works

Legal framework and principles

The IR model is enshrined in the 2018 law (Casino Implementation Act): casinos are allowed only inside integrated resorts, under a separate license and with hard barriers from gambling addiction. For residents, an entrance fee of 6,000 yen per visit and visit frequency limits (based on identification) are provided, and the tax on casino GGR is 30% (divided between the center and the region).

Localization of IR and status of projects

The central government approved the first IR in Osaka (MGM Resorts/Orix consortium). Current plans call for the Yumeshima Island site to open by the end of 2030; before start-up - long phase of construction and approvals. The project includes hotels, a congress center, shopping and entertainment areas and a museum.

Social fuses

The IR model provides for: prohibition/rigid junket framework, KYC/AML and attendance tracking, no ATMs in gaming halls, self-exclusion and family prohibitions systems, video surveillance and analytical compliance. Sources of financing for responsible gambling measures are input fee and GGR tax.

Requirements for operators and suppliers working with Japan

1. Abandoning Japan's online targeting. Any marketing, localization, domain/subdomain, payments, support in Japanese, aimed at Japanese users outside IR, create high compliance risk. In 2025, advertising and landing pages are banned; platforms are required to remove such content.

2. Payment providers. Strict filtering of MCC, geo-limitations and monitoring of "gray" schemes. Any processing of payments in favor of offshore casinos aimed at Japan is a zone of increased responsibility. (Trend 2025 - tightening of practice by the NPA.)

3. Content and SEO. Exclude Japanese keys/tags, referral bridges, links to "mirrors," promos in social networks and instant messengers. Delete UGC leading to prohibited resources.
4. IR supply chain. To participate in IR - readiness for certifications, logs, KYC/AML, RG tools, reporting and integration with state attendance control systems. Funding for RG measures comes from an input fee and a 30% tax on GGR.

Market: Risks and Opportunities

Risks for online operators/affiliates: enforcement is tightening: blocking, ad stripping, detention cases. Any "Japanese" traffic funnel outside IR is a high legal risk.
Window of opportunity - IR and tourism: MICE demand, luxury segment and premium entertainment, influx of foreign tourists (IR in Osaka is synchronized with the development of Yumeshima and infrastructure after Expo 2025).
Technology providers: AML/RG systems, behavioral analytics, fraud/payment filters, secure visitor identification and reporting for IR regulators are in demand.

High-level checklist

1. Disable any online targeting of users in Japan (language, domains, creatives, retargeting).
2. Filter payment flows and block MSS/routes associated with offshore casinos for Japanese traffic.
3. Remove/moderate UGC links and promos on social platforms, promptly fulfill requests for content removal.
4. For IR cooperation: prepare a package of certifications, RG/AML policies, integration with attendance control and tax reporting systems (30% GGR + entrance fee).

Perspective to 2030

The nearest horizon is the launch of IR in Osaka by the ~ end of 2030 and the gradual formation of best-practice for compliance and RG within IR. Online casinos outside IR remain outlawed, and advertising and payment controls are tightened. For legal market players (tourism, MICE, entertainment as part of IR), Japan will become one of the most regulated but predictable models in Asia.

• IR (Integrated Resort) - an integrated resort with casinos, hotels, congress centers and leisure infrastructure; casinos are allowed only within IR and subject to social barriers (admission fee, visiting limits, dependency control).