Tokyo, Jan 14: Japan will increase funding for its gambling regulator in 2026, strengthening oversight of online betting as the government tightens controls on illegal gambling while quietly preparing for an expansion of land-based casinos.
The budget for the Casino Management Commission will rise to 3.91 billion yen ($245 million) in 2026 from 3.71 billion yen this year, a 5.4% increase, according to budget documents. While modest in headline terms, the allocation signals a push to build regulatory capacity as offshore and online gambling continues to outpace Japan’s tightly restricted domestic market.
More than 63% of the commission’s budget, or 2.47 billion yen, will be spent on personnel costs. Staffing will edge up to 168 employees, with two roles eliminated through rationalisation and three new administrative posts added. Some operating expenses will be trimmed, while spending on training and supervisory systems will increase.
In a separate move, the government has earmarked 540 million yen for the Digital Agency to develop technology infrastructure to monitor online gambling activity.
The stepped-up oversight comes as Japan grapples with a booming offshore market. Police data from 2024 showed over 3.37 million people gambled domestically, while unregulated remote gambling generated about 1.2 trillion yen in revenue – far exceeding the scale of the country’s nascent legal casino industry.
Lawmakers responded last year by enacting a comprehensive ban on remote gambling, granting authorities, internet service providers and social media platforms the power to block gambling websites and remove promotional content. The law does not clearly define penalties, placing greater emphasis on regulatory enforcement and the ability to shrink the digital space used by illegal operators.
At the same time, Japan has not abandoned its long-delayed casino ambitions. Prime Minister Sanae Takaichi has linked integrated resorts to broader economic goals, and the government is preparing to reopen the application process.
Only one project – the MGM–Orix Osaka IR – has so far won approval and is expected to open in 2030. A draft Cabinet Order proposes a new application window from May to November 2027, allowing up to three additional projects to be certified under existing law.
Regions including Nagasaki, Wakayama, Yokohama and Hokkaido are expected to seek approval again, attracted by the potential for tourism revenue even as strict gambling rules remain in place. Japan still records more than 1 trillion yen a year in online wagers.
The competing policy tracks place growing pressure on the Casino Management Commission, which must enforce the remote gambling ban while preparing to oversee future land-based casinos likely to draw global scrutiny. With Toshiyuki Shimada taking over as secretary-general in mid-2025, the regulator faces a critical test of its credibility at home and abroad.
How effectively the commission deploys its expanded budget and targeted staffing will shape whether Japan can rein in illegal online betting while laying the groundwork for one of the world’s most tightly regulated casino markets.
