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Current state of the market (2024)
What would you say about the state of the iGaming industry in Japan by 2024? Has there been a significant shift or milestone this year?
Despite the uncertainty about how future Police campaigns may change the iGaming scene in Japan, online casino users, including sports bettors, seem to be steadily increasing, and there are more online casinos entering the Japanese market. There is a commonality in the industry: companies are no longer hiring anyone from Japan to work in the Japanese market.
Which games and gambling activities are most popular among Japanese players today?
The popularity of social casino games is on the rise. Casino players are becoming more and more interested in games like Plinko, Crash, Hi-Lo and Pachinko.
What has changed in the regulatory environment since 2024? Has there been any significant change that has affected operators or consumers?
In 2024 the Japanese Police will arrest more people for using online casinos than in previous years. Payment providers and streamers based in Japan have been targeted. In August, encouraged by the support of the Prime Minister at the time, the Police announced that they would be investigating more iGaming operators and affiliates even outside Japan. In 2024, the Police have made more than 100 arrests in relation to online casino use.
Due to the increased risks of promoting online casino, streamers are now charging higher fees. Some YouTubers migrate to other platforms to avoid being detected by the police.
How has mobile gaming impacted the iGaming industry in Japan? And how does this compare with desktop and other platforms?
Japan is a market that’s mobile. Over 70% of Japanese players use a mobile device to play. The usability of the mobile casino platform could be key in retaining and attracting players, as they are technology-driven. Operators who studied the Japanese mobile player’s behaviour and preferences in 2024 would have seen better results both in sports betting and casino.
Has the Japanese iGaming industry adopted new technologies such as virtual reality or blockchain?
As more and more people play at online casinos, they are increasingly using cryptocurrency. In Japan, the demographics of crypto users are more diverse. Users could be as old as 60.
Challenges & Opportunities
What are the main challenges that you perceive to be facing Japanese operators and other stakeholders?
Japan is a market driven by affiliates. As the risk increases, it is expected that the affiliate/streamer costs will increase. As direct marketing i.e. As local media has a limited reach, it can be difficult to increase brand awareness. It is important to have creative ideas, and you must be able to catch the right time.
How are companies differentiating their services to attract Japanese players in the face of increasing competition?
Operators tend to hire native Japanese-speaking employees to ensure that the site is localized and meets the needs of Japanese users. Next, the branding. Bonuses and promotions are also geared towards Japanese users.
Can you give us some examples of successful partnerships in Japan between operators and local institutions or entities?
It is well known that live streaming providers and organisers of fighting events work well with operators.
What do you think about offshore and unlicensed operators affecting the market landscape?
In Japan, there are not many unlicensed operators that are promoted or known.
A Look at 2025
In 2025, what are the key trends and developments you anticipate in Japan’s iGaming industry?
In 2025, more new Japanese players will be attracted to online casinos via social media. In 2025, more deposits will be made using cryptocurrency.
Is there any specific regulatory reforms, or discussions, that could have a significant impact on the market in 2019?
The Police investigations efforts could impact the market depending on who’s involved and when it happens.
Do you anticipate new local and international entrants establishing a presence in Japan with the growth of the market?
As they have plenty of room to grow, I anticipate more newcomers on the Japanese market. They may struggle to compete unless they have a strong brand and region-specific strategy.
What is the importance of localization to operators who are planning to enter or expand on the Japanese iGaming Market? What should operators prioritize?
The site must be fully localized. This is a top priority. Affiliates won’t work with you until your site has been fully localized in Japanese and offers good customer service.
Which technological innovations will you say drive the growth of the iGaming industry in Japan by 2025?
Any functionality which creates a sense of community and improves the usability of users.
Insights & Predictions
Do you believe that Japan will move to a more liberal or unified regulatory framework for online gaming? What would be the catalyst for this change?
Land-based casinos are now legal and are expected to open in Osaka before 2030. Unfortunately, this move is not likely to be extended to online gambling anytime soon. The government opposes it.
What would you advise iGaming firms looking to expand in Japan in 2025 or launch in Japan?
Watch for updates on Police investigations and arrests of operators outside Japan. Make sure you have native Japanese-speaking people to monitor the latest developments.
What do you think of the Japanese consumer’s preferences in terms gaming, payment systems and platform interaction?
The players have always been quick, but they are now even faster. The expectation of quicker service is now higher than ever.
Also, they like to feel like a part of the community, whether it’s through VIP services, chat rooms, or player-to-player activities.
A Broader View of the Market
What excites you most about the future iGaming industry in Japan?
The sports betting market is expected to grow as Japanese people become more familiarized with international sporting events through live streaming services. The government has also discussed legalizing sports betting.
You can reach Sachiko West via on LinkedIn.
