New laws passed by Japan’s parliament in June to combat online gambling addiction officially came into effect on 25 September. The measures ban the launch of new online casinos and the posting of online ads for gambling platforms. They are aimed at addressing particular concerns over young people’s involvement in online gambling.
Although online gambling is illegal, the Japanese government estimates that ¥1.24 trillion (£6.2bn) is wagered annually via such platforms. According to a National Police Agency (NPA) report, around 60% of Japan’s 3.37 million online gambling users are in their 20s and 30s.
In addition to the bans, national and local governments will be required to run campaigns to raise awareness about the illegality of online gambling.
While the new laws do not introduce specific criminal penalties, they give internet service providers and social media platforms more authority to proactively identify and remove promotional content.
As Japan tightens restrictions on online casinos, the government is moving forward with land-based gambling through integrated resort laws, which permit the construction of three casinos nationwide.
The first project will be MGM Osaka – a joint venture between MGM Resorts International and Orix Corporation, valued at ¥1.27 trillion (£6.4bn), scheduled to open in 2030.
However, the prospect of Japan’s first casino resort has raised concerns elsewhere in Asia. Industry experts in South Korea warn that the new resort will pose a “serious competitive challenge” to the country’s gambling market.
Forecasts suggest that once the Osaka resort opens, around 7.6 million South Koreans could travel there annually, spending approximately 2.6 trillion won (£1.4bn).
Despite the strict prohibition, data from the National Gambling Control Commission shows that as far back as 2017, overseas gambling by South Korean nationals amounted to 4.9 trillion won (£2.7bn).
“For Korea’s casino and tourism industries to take off, we need new policies that go beyond the current framework,” urged Suh Won-seok, president of the Korea Tourism Society, at an event hosted by the Korea Casino Integrate Resort Association and the Korea Tourism Society in Osaka.
Currently, Koreans can only gamble at a small number of government-approved venues, such as a horse racing track in Seoul, the nation’s capital, and Kangwon Land, the only casino open to locals.
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