Can You Get Arrested for Playing in Online Casinos? A Lawyer Explains the Illegality

In Japan, engaging in gambling by betting money at casinos is prohibited as it constitutes a gambling crime under the Penal Code.

Furthermore, the use of online casinos, which operate through the internet, may also pose legal issues, with an increasing number of cases where both users and operators are subject to punishment.

This article provides a detailed explanation of the illegality and points of caution regarding online casinos, based on relevant Japanese laws, case law, police enforcement status, and specific incidents.

What is an Online Casino?

An online casino is a casino that can be played over the Internet. Similar to traditional land-based casinos, you can enjoy games such as slots, blackjack, roulette, baccarat, and poker. With the ability to access from anywhere in the world and play from PCs or smartphones, online casinos have become increasingly popular in recent years.

Reference: Consumer Affairs Agency of Japan: “Connecting to online casinos and gambling is a crime within Japan!”

The Mechanics of Online Casinos in Japan

First, let’s introduce how online casinos are operated and their underlying mechanisms.

Basic Operational Methods

Online casinos in Japan are primarily operated using the following methods:

• Live Casino Method: A real dealer conducts the games in real-time, and players participate online.
• RNG (Random Number Generator) Method: A computer uses a random number generator to produce fair outcomes.

Casino operators partner with game software providers (e.g., Microgaming, NetEnt, Playtech) to offer a variety of games.

Deposits and Withdrawals

Similar to physical casinos, online casinos in Japan allow you to play with real money. The main methods for deposits and withdrawals are as follows:

• Deposit Methods: Credit cards, electronic money (such as PayPal, ecoPayz), and crypto assets (like Bitcoin) are commonly used.
• Withdrawal Methods: Transactions are conducted through bank transfers, electronic wallets, or crypto assets, but delays and restrictions may sometimes occur.

The Illegality of Online Casinos Under Japanese Law

Legal Basis for Punishing Online Casinos in Japan

Articles 185 and 186 of the Japanese Penal Code prohibit gambling and the operation of gambling venues.

Engaging in games of chance with money at online casinos is considered illegal and may constitute the crime of gambling or habitual gambling under these provisions.

Reference: National Police Agency “Gambling at Online Casinos Is a Crime!”

What Constitutes a Gambling Crime?

In Japan, the Penal Code defines two types of gambling offenses: “simple gambling” (Article 185) and “habitual gambling” (Article 186, Paragraph 1), both of which are prohibited.

• Simple gambling: This applies to one-time or occasional gambling and is punishable by a fine of up to 500,000 yen or a petty fine.
• Habitual gambling: This applies when a person is recognized as repeatedly engaging in gambling and carries a heavier penalty of imprisonment for up to three years.

“Habitual” refers not just to repeated gambling, but to a state where gambling has become a habit. Whether or not one’s actions constitute habitual gambling is determined by a comprehensive assessment of the following factors:

• The type of gambling engaged in
• The amount of money wagered
• The duration and frequency of the gambling activities
• Whether there is a history of being punished for gambling

Taking these elements into account, if the court deems there is habitual behavior, the penalties can be significantly more severe.

Note that with the revision of the Penal Code, from June of Reiwa 7 (2025), imprisonment and penal servitude will be unified into a single penalty of “confinement.” For more details, please refer to the following article.

Related article: 【June Reiwa 7 (2025)】What is the newly established ‘Confinement Penalty’ due to the Penal Code revision? Explaining the significance and four key points

Cases Where Crimes Are Not Prosecuted Due to Statute of Limitations in Japan

In Japan, crimes such as gambling offenses are subject to a “statute of limitations.” Therefore, not everyone who has used online casinos will be punished as illegal. The statute of limitations for gambling crimes in Japan is established under Article 250 of the Penal Code as follows:

General Gambling Offense (Penal Code Article 185)

Statute of Limitations Period: 3 years

For simple gambling (general gambling activities), a “3-year” statute of limitations for public prosecution applies.

Habitual Gambling Offense (Penal Code Article 186, Paragraph 1)

Statute of Limitations Period: 5 years

For those who gamble habitually, it is considered a more serious crime, and a “5-year” statute of limitations for public prosecution applies.

Profit from Operating a Gambling Establishment Offense (Penal Code Article 186, Paragraph 2)

Statute of Limitations Period: 7 years

For those who open and operate a gambling establishment for profit, it is an even more serious crime, and a “7-year” statute of limitations for public prosecution applies.

Cases Where the Act on Punishment of Organized Crimes Applies

If illegal gambling, such as online casinos, is operated in an organized manner, the Act on Punishment of Organized Crimes may apply. In such cases, more severe penalties may be imposed, and the period for the statute of limitations for public prosecution may be extended.

Reference: House of Representatives “Act on Punishment of Organized Crimes, Control of Crime Proceeds, and Other Matters”

Starting Point of the Statute of Limitations

The count for the statute of limitations for public prosecution begins from the moment the criminal act is completed. For example, for a one-time gambling act, it starts from that day, and for habitual gambling, it starts from the last day gambling was conducted.

On the other hand, there are cases where the statute of limitations is suspended or interrupted.

If law enforcement agencies are involved and certain actions occur (for example, the arrest or indictment of a suspect), the statute of limitations may be temporarily suspended or interrupted.

However, considering cases where users and operators of online casinos have been cracked down on, if police investigations progress, it is likely that arrests and indictments will occur before the statute of limitations is established. Therefore, it is risky to assume “I’m safe because of the statute of limitations.”

Can Gambling in Foreign Online Games Be Illegal Under Japanese Law?

From the perspective of territoriality, gambling activities conducted within Japan are subject to Japanese law, even if they utilize servers overseas. This means that if you access an online casino from within Japan and place bets, you could be punished under the Japanese Penal Code, even if the operator is based abroad.

Reference: National Consumer Affairs Center of Japan “On the Illegality of Online Casinos”

On the other hand, from the perspective of nationality, Japanese nationals who engage in illegal gambling activities abroad may also be subject to punishment under Japanese law, depending on the circumstances. This indicates that Japanese law can apply to illegal acts committed by Japanese citizens abroad under certain conditions.

The Illegality of Online Casinos Based on Japanese Case Law

In 2016, the Fukuoka District Court in Japan handed down a guilty verdict for a Japanese individual who used an overseas online casino, convicting them of the crime of gambling. The judgment stated that “even if the servers are located overseas, placing bets over the internet within Japan constitutes gambling.”

Reference: Police Policy Studies Association “Legal Issues Surrounding Online Casinos”

This case law has clarified that the perception of “online casinos based overseas are safe” is incorrect. Even if the casino is legal overseas, using it within Japan could likely be illegal.

Strengthening Administrative and Police Enforcement

The National Police Agency in Japan has been intensifying its crackdown on online casinos in recent years, with a particular focus on the following areas:

• Investigations are targeting activities that may apply the crime of gambling even when accessed from within Japan
• To block financial transactions to illegal online casinos, there is strengthened collaboration with credit card companies and banks
• They are promoting the apprehension of illegal operators and working to eliminate illicit sites
• As a measure against illegal gambling addiction, they are enhancing public awareness campaigns

These measures mean that not only users but also operators and collaborators are becoming targets of enforcement.

Actual Cases

Utilizing online casinos in Japan is illegal under Articles 185 and 186 of the Japanese Penal Code. In recent years, there has been an increase in arrests related to online casinos, and we will introduce some of the main cases below.

Questioning of Comedians Affiliated with Yoshimoto Kogyo (February 2025)

On February 5, 2025, Mr. Yoshimoto Dai of the comedy duo “Daitaku” and Mr. Nakamura★Shun of “9th Street Retro” were voluntarily questioned by the Tokyo Metropolitan Police Department regarding their use of online casinos. Their agency, Yoshimoto Kogyo, announced through its official website that it is investigating the facts in cooperation with external lawyers due to the potential compliance violation. It also made clear that the activities of the involved talents would be suspended until the investigation is completed.

Arrests for Violation of the Organized Crime Punishment Law (February 2025)

On February 4, 2025, three individuals were arrested on suspicion of violating the Organized Crime Punishment Law. While detailed information has not been disclosed, it is suspected that they were involved in organized criminal activities related to online casinos.

Solicitation via SNS and Arrests for Habitual Gambling (January 2025)

On January 30, 2025, four men and women who were using social media to invite others to online casinos were arrested on suspicion of habitual gambling. They are alleged to have conducted solicitation activities on social media, leading many users to online casinos.

Documentary Examination of a Table Tennis Player (January 2025)

On January 29, 2025, table tennis player Mr. Niwa Koki was sent to prosecutors for documentary examination on suspicion of using an online casino, drawing significant attention as an illegal gambling act by a professional athlete.

Crackdown on Online Casino Shops in Osaka (January 2025)

On January 20, 2025, five shops operating online casinos in Osaka City were cracked down on, resulting in the arrest of 41 individuals. These shops were allegedly operating online casinos illegally and generating substantial profits.

The Rivaton Case (January 2025)

On January 20, 2025, eleven members of the money laundering group “Rivaton,” associated with online casinos, were sent to prosecutors for documentary examination on charges of organized habitual gambling. This group is alleged to have been engaged in money laundering activities using online casinos.

Documentary Examination of General Users (November 2024)

In November 2024, 57 general users of online casinos were sent to prosecutors for documentary examination on suspicion of gambling. These cases demonstrate that the use of online casinos carries legal risks even for individual users.

Key Points for Online Casino Users in Japan

As highlighted in the article above, using online casinos within Japan, even if they are legally operated overseas, can violate Japanese law and may result in legal consequences such as arrest or indictment.

These cases have demonstrated that even if the intent is merely for ‘entertainment purposes,’ there is a potential for legal liability. Those considering the use of online casinos must fully understand the risks involved and exercise careful judgment.

Reference: Government Public Relations Online “Gambling through Online Casinos is a Crime!”

In addition to the risk of legal violations, it is also important to be aware of the following risks:

Risk of Financial Troubles

Illegal sites often carry a high risk of non-payment of winnings and account freezing, and there is also the danger that your stakes could be diverted as criminal funds.

Security Risks

There is a possibility that personal and credit card information could be misused. If a work smartphone or PC is used instead of a personal one, there is not only a risk to the individual user but also the potential for theft of company information or virus infection, which necessitates caution.

Risk of Addiction

Online casinos are easily accessible, which can lead to a higher risk of gambling addiction.

Reference: Consumer Affairs Agency “For Those Troubled by Gambling and Other Addictions”

Key Points for Online Casino Operators Under Japanese Law

Operators can face severe penalties for violating Japanese laws. The following points require particular attention.

Advertising Targeted at the Japanese Market Is Prohibited

In 2019, the Tokyo Metropolitan Police arrested Japanese operators of an online casino based overseas for the crime of promoting gambling. It became clear that advertising activities targeting users in Japan and generating substantial profits were seen as problematic.

As such, advertising aimed at users within Japan could be deemed illegal and requires caution.

Issues with Payment Processing

Japanese financial institutions restrict transactions to illegal online casinos, which could lead to the interruption of fund transfers.

Reference: SBI Remit “Frequently Asked Questions (Overseas Remittance)”

Issues Regarding Server Location

If an online casino operates with servers located within Japan, it clearly constitutes the crime of establishing a gambling venue and is explicitly illegal.

Adapting to Legal Reforms

In response to the prevalence of illegal gambling, the Japanese government has been strengthening gambling regulations, and further legal reforms may occur in the future.

Attention must also be paid to future trends in legal amendments.

Summary: Gambling Online Is Illegal Even If It’s Online

In Japan, gambling is generally illegal, with the exception of government-operated betting which is permitted as a special case. Even if online casinos are services based overseas, using them from within Japan can lead to legal violations, so caution is necessary.  

Illegal gambling carries not only the risk of arrest but also the dangers of fraud and gambling addiction. It is crucial not to take a casual attitude thinking “a little won’t hurt,” but rather to understand the law correctly and make appropriate decisions.

Furthermore, there is a possibility that games or services provided by your company could unintentionally be deemed as “gambling.” When offering new games or services, it is advisable to have a Japanese attorney check for legality.

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