An association of some of the nation’s top firms estimates that Japanese residents spend $44.2 billion on overseas-based illegal sports betting sites annually.

Per a report from Nikkei, the claim comes from the Council for Sports Ecosystem Promotion. The council comprises 115 of Japan’s biggest companies, including NTT Docomo, Mitsubishi UFJ Bank, ASICS, Mizuho Bank, NEC, and Softbank.

Japanese Sports Betting Crackdown Incoming?

The council aims to push for digital transformation in Japanese sports and wants to increase grassroots sports’ social value. During Financial Year 2024, the council ran a survey. It found that Japanese residents made 6.4503 trillion yen in sports bets through overseas sites during this time.

The survey also discovered that Japanese gamblers staked 1.183 trillion yen (equal to $8.1 billion) on bets related to domestic sports events in FY2024. The council states that these amounts are much higher than the $915 million Japanese residents spent on the official Sports Promotion Lottery this year.

More than half of these illegal bets targeted professional baseball games. For soccer and basketball, betting made up a combined total of 333.4 billion yen ($2.3 billion).

The council highlights a risk that some athletes might try to fix results. They are asking for an international system to stop illegal sports gambling. The council says it will work with groups in other countries on actions to stop match-fixing.

Match Fixing Revelations

Japanese sports often face allegations of match-fixing. In 2011, a big controversy erupted at the nationwide sumo tournament. Junn Mitsuhashi, a Japanese tennis player, was given a lifetime ban and fined $50,000 in 2017 for trying to fix matches he played in 2015.

A number of famous Japanese baseball players have recently admitted they use online casinos. In March, 16 pro players, including Orix Buffaloes pitcher Taisuke Yamaoka, got fines and suspensions for illegally betting through online sites. This month, two players from the Yomiuri Giants were sent to Tokyo police for suspected betting on casino sites.

Big Japanese news outlets report that most sports betting is illegal. Still, authorities have not made strong efforts to stop people from betting on games. This has led to a steady flow of money leaving Japan and going to overseas betting sites, where many openly accept Japanese players.

Illegal Casino Sites Growing in Popularity

In March 2024, Tokyo announced that it would improve its rules to fight gambling addiction. The plan started under former Prime Minister Fumio Kishida. Kishida told lawmakers that all ministries and agencies need to cooperate to tackle online casinos. But the number of people using illegal gambling sites is rising.

The Ryukyu Shimpo newspaper reported in March that the National Police Agency estimated 3.37 million Japanese have accessed online casinos. This group wagered about 1.2 trillion yen ($8.2 billion).

Police said there were 279 arrests for online casino gambling in 2024. This figure is 2.6 times higher than the number in 2023. The agency reached these numbers using a nationwide survey including 27,145 people. Police discovered most users are under 30 years old and 6% are between 15 and 19. Also, 40% of respondents said they did not know online gambling is illegal.

Investigators believe 70% of Japanese-language online casinos are run from Curaçao. Police have given warnings to celebrities and social media influencers. According to the agency, those who promote these online casinos might be committing the crime of “abetting gambling.”

Even as police and other officials try to clamp down, construction is underway in Osaka on an $8.1 billion casino. This location will be Japan’s first official casino, and the operators plan to open it by 2030.