Photo/Illutration Vera & John’s free gaming site, left, and its casino site (Ryota Goto)

A lack of regulations has allowed online casino operators to advertise non-betting games on the internet and TV, which could lead to illegal gambling on their sites.

DAZN, which streams live sports programs online, ran advertisements for free games offered by the largest casino site, Vera & John, in the past.

The Consumer Affairs Agency said a website is considered a gaming site as long as players do not bet money even if it resembles a casino site.

Online gambling is illegal in Japan. Betting is allowed only on activities specified by law, such as horse racing and motorboat racing.

DAZN Japan said it allowed Vera & John ads because they were only for free games and would not lead visitors to a casino site.

The company added that it has suspended the ads after reviewing ad standards.

Some TV networks, including a terrestrial station, also said they had broadcast casino sites’ advertisements for free games between 2020 and 2023.

People in Japan who bet on a casino site registered overseas face a fine of up to 500,000 yen ($3,400). Chronic gamblers are subject to imprisonment of up to three years.

However, there are no legal regulations on advertisements by online casino operators, both for free games and casino sites, according to the internal affairs ministry.

A National Police Agency survey released on March 13 showed that 24 percent of respondents started gambling on casino sites after playing free games offered by online casino operators.

An additional 9 percent said they started betting on casino sites after seeing advertisements.

Tokyo’s Metropolitan Police Department referred 10 people to prosecutors in November on suspicion of gambling on overseas casino sites, including a man who said he had clicked on an online ad.

Kuruma Takahira of the comic duo Reiwa Roman admitted to having bet on a casino site in a YouTube video in February, saying that he thought it was not illegal because he had seen an ad on the internet.

Yoichi Torihata, a professor emeritus of financial theory at Shizuoka University who is familiar with casino-related issues, said playing non-betting games of online casino operators will lower inhibitions for gambling on casino sites.

The ruling Liberal Democratic Party plans to outlaw online ads that lead viewers to casino sites by submitting a bill to revise the basic law on countermeasures against gambling addiction to the current Diet session with other parties.

(This article was written by Shoko Mifune and Ryota Goto.)

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