"Will I be arrested?"—A Comprehensive Guide to the Risks for "Past Users" Amidst the Crackdown on Online Casinos (Comparison of Regulations in Japan and Abroad)

1. Introduction: Shift in Online Casino Crackdown from "Operation" to "Use"

In the past, Japanese police primarily targeted the "house side," such as illegal casino shops and bookmaker agencies. However, with the rise of cryptocurrencies and electronic payments, a new form of "site overseas, customers domestic" has surged. Since the end of 2024, there have been a series of arrests of users, with reports like "Man arrested in Tokyo on habitual gambling charges" continuing.youtube.com

2. Why Japanese Law Deems Online Gambling Illegal

• Article 185 of the Penal Code (Gambling Offense): Fine of up to 50,000 yen or minor penalty

• Article 186, Paragraph 1 of the Penal Code (Habitual Gambling): Imprisonment for up to 3 years

• Crime of Opening a Gambling Place for Profit (Article 186, Paragraph 2): Operators face imprisonment for up to 5 years
  
  
  The focus is on the concept of "territoriality," which states that if gambling activities are deemed to be completed within Japan, they are illegal. "Even if the server is overseas, if your smartphone is in Japan, it's a domestic crime"—this is the police's stance.japantimes.co.jp
  
  
  
  

3. Timeline for Regulatory Strengthening Until 2025

4. Will People Who Have Played in the Past Be Arrested?

1. Relation to Statute of Limitations
   The statute of limitations for gambling offenses is 3 years. There is a high possibility that one-time plays from over 3 years ago will not be prosecuted in principle.

2. Preservation of Account and Payment History
   Since investigative authorities inquire with electronic payment companies and banks, the risk continues as long as records remain.

3. Preparation for Voluntary Interrogation
   It is recommended to consult a lawyer early and decide on a response policy to any request to appear.daylight-law.jp
   
   
   
   

5. Is Voluntary Return and Tax Declaration Effective?

• Criminally: Although voluntary return does not erase illegal acts, certain considerations may be expected in sentencing.

• Tax-wise: Winnings are classified as temporary income (taxed after a 500,000 yen annual deduction). Non-declaration incurs separate penalties. The National Tax Agency strengthens capture with reports on overseas remittances of platform information.
  
  
  
  

6. Comparison ①: UK—"Playing is Legal, Strict Licensing for Operations"

In the UK, the **UK Gambling Commission (UKGC)** issues licenses based on the 2005 Gambling Act. In May 2025, marketing regulations were further strengthened, and users are required to verify age, use self-exclusion tools, and set deposit limits.gamblingcommission.gov.ukiclg.com


Key Points

• Unlike Japan, players are not subject to criminal penalties.

• Illegal sites are blocked by ISPs and cut off from major payment networks.

• Gambling advertisements must display "18+" and "Responsible Gambling."
  
  
  
  

7. Comparison ②: USA—State-by-State "Patchwork" and Sweepstakes Model

In the US, there is no federal-level prohibition, and legality varies by state law. As of June 2025, only six states fully permit online casinos, while sweepstakes model sites using "Sweeps Coins" are rapidly growing in all 50 states.talksport.compokernews.com


Key Points

• In legal states, KYC and geolocation technically block gambling across state lines.

• In illegal states, individual users are rarely arrested, but there is concern about being charged with money laundering.

8. Dual Risks Faced by Overseas Residents and Visitors to Japan

If foreign residents in Japan engage in online gambling, Japanese law applies. Conversely, Japanese people playing on legal local sites while traveling abroad is generally free. However, accessing from Japan via VPN to "spoof the server country" is a violation of Japanese law. Having a license from the UK or Malta does not serve as a get-out-of-jail-free card.

9. Technology and Financial Blockades—A Blueprint for the Next 3 Years

• ISP-Level Blocking: Blocking access to specific URLs/IPs

• Payment Blocking: Restrictions on domestically issued cards and bank transfers

• AI Monitoring: Automatically detecting and requesting the removal of ads and social media posts
  
  
  The government policy sets a numerical goal of "zero illegal site users" by fiscal year 2027.sccgmanagement.com
  
  
  
  

10. Conclusion: If You Have Played Before, Take These 5 Steps Immediately

1. Immediately stop usage and deposits and discard login information

2. Download payment history and share with a lawyer

3. Consider filing a tax return for winnings and voluntary payment

4. Self-check for gambling addiction (such as on the Ministry of Health, Labour and Welfare's website)

5. If requested for interrogation, organize your statement with a lawyer present.
   
   

List of Reference Articles

1. Japan Times "Cabinet approves strategy to battle illegal online casinos" (2025-03-21)japantimes.co.jp

2. SCCG Management "Japan moves to crack down on illegal online casinos amid growing gambling concerns" (2025-05-16)sccgmanagement.com

3. GGRAsia "Japan cabinet nods 3-year plan on gambling addiction including against online play" (2025-03-21)ggrasia.com

4. Daylight Law Office "Will you be arrested for online casinos? Arrest cases and countermeasures" (2025-05-26)daylight-law.jp

5. Asahi Shimbun AJW "Japan lacks regulations on casino site ads for free 'games'" (2025-03-18)asahi.com

6. UK Gambling Commission "New rules boosting safety and consumer choice" (2025-05-01)gamblingcommission.gov.uk

7. ICLG "Gambling Laws and Regulations – UK Chapter 2025" (2024-11-19)iclg.com

8. Chambers UK "2025 Gambling Act Overhaul" (2025-05-08)##HTML