Japan Asks Canada, Costa Rica and More to Block iGaming Sites

Japan has formally asked eight jurisdictions around the world to block online gambling operators licensed within their borders from offering services to Japanese residents. This move is part of a broader initiative by Japanese authorities to tighten control over illegal online gambling activities and enforce the country's strict gaming regulations. The request was made by Japan's National Police Agency through the Ministry of Foreign Affairs.

A screenshot of the Japan-facing Twin online casino. (Source: Twin Casino)
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The countries and territories that received the request include Canada, Costa Rica, Georgia, Malta, Anjouan in the Comoros Islands, Curaçao, the Isle of Man, and Gibraltar. These locations are commonly known for serving as licensing hubs for international iGaming operators, many of which cater to customers beyond their immediate regions. Japanese officials have not publicly detailed the mechanisms through which they expect these jurisdictions to restrict access for Japanese users.

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The request from Japan aligns with the country's ongoing efforts to regulate and suppress unauthorized online gambling. Japan permits only a limited set of gambling activities, such as government-run lotteries and certain forms of sports betting, while online casinos remain illegal under Japanese law. Nevertheless, many Japanese residents have reportedly accessed offshore online casinos using digital platforms, often facilitated through payment channels that are now under scrutiny.

The latest push comes amid a notable development in Japan's legal gambling landscape. MGM Osaka, the country's first integrated resort with a casino, is scheduled to open in late 2030. A groundbreaking ceremony for the resort was held in April, and its progress is closely monitored by policymakers aiming to distinguish legal, land-based casino operations from unregulated online gambling.

Recent law enforcement actions underscore the scale of the issue Japan faces. Earlier this month, police detained nine individuals allegedly linked to an online gambling ring that processed approximately JPY90 billion (US$628.5 million). Authorities reported that JPY2.6 billion (US$13.8 million) of these funds were directly connected to gambling activities involving about 3,600 Japanese customers at overseas online casinos.

Shortly before the arrests, the Japanese House of Representatives passed a bill designed to enhance legal provisions against illegal online gambling. The legislation focuses on closing loopholes and strengthening regulatory oversight to make it harder for unauthorized operators to reach Japanese users.

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Parallel to legislative efforts, regulatory agencies in Japan have been engaging with financial institutions to stem the flow of funds to online gambling platforms. In early May, the Financial Services Agency and the National Police Agency jointly issued a notice urging banks and payment processors to inform customers that online casinos are illegal under Japanese law. These agencies also requested financial organizations to assist in halting payment processing services to such platforms.

Additionally, the Ministry of Internal Affairs and Communications has convened a specialized body known as the Study Group on the Prevention of Access to Online Casinos. During its fourth meeting in May, participants explored the legal implications and technical possibilities of using internet blocking tools to limit consumer access to unauthorized gambling sites.

It's unclear how or whether the eight requested jurisdictions will respond to Japan's appeal, and how the request would be fulfilled.

RELATED TOPICS: Regulation

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