Yokohama Kanagawa Prefectural Police arrested nine individuals on June 5 for allegedly operating an illegal online casino targeting Japanese users. The casino, located in Curacao in the Dutch Caribbean, reportedly offered online slots and other betting games through the website, Konibet. 

One of the culprits was Yoshinori Kurata, a 42-year-old company executive from Tokyo’s Chuo Ward. Police say Kurata and others managed the payment system behind the site. The group is suspected of violating Japan’s organized crime punishment law.

According to authorities, Japanese law applies to all gambling done within the country, even if the service is hosted overseas. Police confirmed the suspects were involved in the payment systems of at least six websites linked to gambling activities from April to May 2024.

Investigation Unfolded After Fraud Triggered Suspicion

The case began after an unusual fraud investigation led police to suspicious financial activity in March 2023. Several corporate accounts were flagged due to large volumes of deposits and withdrawals occurring in short periods. Investigators believed the accounts were used by gamblers accessing foreign sites.

Online casinos are often hard to track because of offshore hosting. However, in this case, the police obtained IP data that helped in locating a key server. After seizing and analyzing server data, they discovered how customer funds were being moved and divided across several accounts.

Roughly 10 different accounts were active at any one time, and were rotated frequently. The police believe this method was used to avoid detection and prevent account freezes triggered by repeated large deposits.

Billions Moved Through Complex Payment Channels

Customer deposits into these accounts exceeded 90 billion yen between early 2023 and July 2024. Investigators said about 500 accounts were prepared, many purchased or obtained as dormant bank accounts, to hide the money trail.

The police also believe the suspects built their own payment system. When users made deposits, the money was converted into points used for betting. If players won, payouts were made from a separate account. This system helped conceal transactions and reduced the risk of detection by financial institutions.

A source involved in the case said, “The usual investigation process, which involves repeated account inquiries, takes a long time. Seizing the server opened the door to a clearer view of the operation.”

Authorities Now Focus on Identifying Group Leader

Since February, police have charged three of the nine suspects with illegally transferring about 4.2 billion yen in casino earnings. They are also accused of committing fraud by withdrawing funds from frozen accounts and disguising the transactions as legitimate claims.

The investigation continues as authorities aim to uncover the full scale of the operation. A police source close to the case said, “The focus of the investigation will be whether the highest level of the group, the leader, can be exposed.”