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Addiction groups petition government to regulate online casinos

Six Japanese addiction support organizations petitioned the prime minister and eleven ministers to close a legal gap that leaves foreign online casino operators beyond the reach of Japan's gambling venue law.

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Home › News › Addiction groups petition government to regulate online casinos

A network of addiction support organizations submitted a petition dated June 10, 2022 to Prime Minister Fumio Kishida and eleven ministers and agency heads, asking for legal amendments to regulate online casinos1. The signatories are the Addiction Problems Measures Network, the public interest corporation Gambling Addiction Problem Study Group, the certified NPO National Association of Families of Gambling Addiction, the certified NPO ASK, Al-Hou Net (the network promoting the Basic Act on Measures against Alcohol-Related Health Harm), and the Network Seeking Correct Reporting on Addiction Problems1.

The petition's first request is a legal amendment so that the crime of running a gambling venue for profit under Article 186, paragraph 1 of the Penal Code applies to foreign operators serving Japanese nationals inside Japan1. It argues that because that offense does not cover crimes committed abroad, online casino operators cannot currently be regulated1. The petition states that gambling itself through an internet terminal inside Japan is already punishable under Article 185, and that running a gambling venue carries a heavier penalty of three months to five years' imprisonment1.

The petition also asks the government to publicize that playing online casinos from Japan is a punishable act, to warn consumers that such transactions violate public order and morals and are void under Article 90 of the Civil Code, to enforce and strengthen existing law against payment providers, and to regulate advertising1. It says deposits are accepted in minutes without checks while withdrawals take days and require identity documents, and that sites can be used at any time, day or night, throughout the year1. Payment methods named are bank transfer, credit card, prepaid payment instruments and cryptocurrency1.

On enforcement, the petition sets out penalties it says already apply:

Payment methodProvision cited
Bank transfer (unlicensed exchange business)Banking Act Art. 61(1)
Credit card (unregistered acquirer)Installment Sales Act Art. 49(6)
Prepaid instruments (unregistered issuer)Payment Services Act Art. 107(1)

Penalty cited: Imprisonment up to three years or a fine up to 3 million yen, or both

The petition says exchange business requires a banking license or funds transfer registration, and that it could not confirm such licenses or registrations among online casino payment providers1. It says registered credit card acquirers must investigate whether merchants obstruct the sound development of card transactions, and can face business improvement orders and registration revocation1. It says foreign issuers of prepaid instruments are barred from soliciting them in Japan under Article 36 of the Payment Services Act, which carries no penalty1. On advertising, it says affiliate ads run on personal websites, blogs, social media and YouTube, and that free-version commercials on radio and video streaming services create the false belief that online casinos are legal1.

"オンラインカジノの規制を求める要望書"
Petition text, source1

What it means for players

The petition does not change any law. Playing online casino games from Japan is described in the petition as already punishable under the Penal Code, and the request is for the government to say so publicly1. The gap it identifies concerns operators: foreign companies running the sites are not covered by the venue offense as written1. For anyone in Japan, the petition's position is that the transaction itself is void under the Civil Code, which affects whether losses could be recovered through consumer channels1. The payment routes named, bank transfer, card, prepaid instruments and crypto, are the subject of the enforcement requests, so the practical risk described is to the companies processing them rather than to the player1. The petition also asks for advertising restrictions, which would affect the affiliate and commercial material that currently promotes these sites1.

What happens next

The petition was addressed to the prime minister, the head of the Gambling Addiction Measures Promotion Headquarters, and the ministers for internal affairs, justice, the National Public Safety Commission, the National Police Agency, health, economy and industry, financial services, consumer affairs and food safety, plus the Consumer Affairs Agency, the Consumer Commission and the National Consumer Affairs Center1. No response or legislative timetable is set out in the petition1. Whether the government acts on any of the five requests has not been reported.

For background on how these rules work across the region, see Gambling Laws in Asia: What Is Legal in 12 Jurisdictions and Online Gambling in Asia: The Law for Players in 12 Jurisdictions. Support options are listed in Safer Gambling in Asia and Gamblers Anonymous and Peer Support Groups in Asia.

Sources1 sources
  1. 20220602オンラインカジノの規制に関する要望書最終版.pdf, scga.jp