Osaka Police Arrest Three in $35 Million Online Gambling Money Laundering Case
Authorities in Osaka have arrested three individuals in connection with a large-scale money laundering operation linked to online gambling. The suspects, aged between 40 and 41, are business executives from the region and are believed to have facilitated illegal transactions totaling ¥4.9 billion (approximately $35 million USD), which originated from overseas iGaming platforms.
Funds From Thousands of Players Funneled Through Accounts
The investigation revealed that the funds were generated from around 10,000 individuals who placed bets on foreign iGaming websites.
These transactions began in March 2022, with over 140,000 separate transfers processed before authorities intervened.
Of the total funds, ¥2.9 billion was returned to players, while ¥2 billion was recorded as casino profits. A percentage of these profits, estimated at 1-2%, was collected by the defendants as part of the scheme.
Independent Operations, Shared Outcome
Although the three suspects were not operating jointly, each ran separate business operations involved in the laundering process.
Police have not yet provided details on how the individuals coordinated their activities, but the scale of the transactions suggests a well-organized network facilitating the illegal gambling activity.
Gambling’s Legal Status in Japan
Gambling is largely prohibited in Japan, with the exception of pachinko parlours. However, there are ongoing discussions about legalizing casino gambling in select regions, including Osaka.
This move could see the introduction of regulated casinos, but for now, online gambling through foreign sites remains illegal.
At the time of reporting, neither law enforcement nor the arrested individuals have provided any public comments regarding the case.
