Free Games or a Gateway to Gambling? The Growing Dilemma of Gambling Ads in Japan

The absence of regulations has enabled online casino operators to promote non-betting games across the internet and television, potentially leading to illegal gambling activities on their platforms.

In previous instances, DAZN, a service that streams live sports online, advertised free games from one of the largest casino sites, Vera & John.

According to the Consumer Affairs Agency, a website is classified as a gaming site even if it does not involve real-money betting, as long as it resembles a casino site.

Gambling online is prohibited in Japan, with legal betting permitted only on specific activities outlined by law, such as horse racing and motorboat racing.

DAZN Japan justified its decision to air ads for Vera & John by noting that they only promoted free games and did not direct visitors to a casino website.

Following a review of its advertising standards, DAZN stated that it has since suspended these ads.

Various television networks, including a terrestrial station, have also acknowledged broadcasting advertisements for free games from casino sites between 2020 and 2023.

In Japan, individuals who gamble on offshore casino sites risk a fine of up to 500,000 yen (approximately $3,400), while habitual offenders face possible imprisonment of up to three years.

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Despite these penalties, there are currently no specific legal regulations governing advertisements from online casino operators, including those for free games or casino sites, as noted by the internal affairs ministry.

A survey by the National Police Agency released on March 13 revealed that 24 percent of respondents began gambling on casino sites after engaging with free games promoted by online casino operators, while an additional 9 percent started betting after viewing advertisements.

In November, the Tokyo Metropolitan Police Department referred ten individuals to prosecutors on suspicion of gambling on foreign casino sites, including one man who admitted to clicking on an online ad.

Kuruma Takahira, a member of the comedy duo Reiwa Roman, confessed in a YouTube video in February to betting on a casino site, mistakenly believing it was legal because he had seen an advertisement online.

Yoichi Torihata, an emeritus professor of financial theory at Shizuoka University with expertise in casino-related matters, commented that engaging with non-betting games from online casino operators can reduce the barriers for gambling on casino sites.

In response to the situation, the ruling Liberal Democratic Party intends to propose a bill to prohibit online advertisements that lead viewers to casino sites, aiming to amend the basic law on countermeasures against gambling addiction during the current Diet session in collaboration with other parties.