Japan Faces Expanding Offshore Sports Betting Market, New Study Reveals

Offshore Betting Market Reaches ¥6.5 Trillion

Illegal offshore sports betting is surging in Japan. According to a recent study by the Council for Sports Ecosystem Promotion, the market for cross-border betting accessible to Japanese users now totals approximately ¥6.5 trillion annually. Around ¥1 trillion of that involves bets placed by users in Japan on local sports such as baseball, football, sumo, and high school tournaments.

Meanwhile, a related market known as the “free-riding” sector – where international operators take bets on Japanese sports without rights or licenses – has reached an estimated ¥4.9 trillion. Over half of this volume comes from wagers on Japanese football. The report identified China, the U.S., and other Asian countries as key betting sources.

Key Stats from the Report:

• Illegal cross-border betting from Japan: ¥6.5 trillion in 2024

• Free-riding bets on Japanese sports globally: ¥4.9 trillion

• Top targets: football, baseball, sumo, basketball, high school sports

• Primary user bases: China, the U.S., and parts of Asia

Legal Risks and Intellectual Property Concerns

The Council found that many offshore betting sites stream Japanese matches, display team logos, and use athlete images without securing permissions. These actions may violate Japanese copyright, publicity, and broadcasting rights.

In one example, betting sites featured live streams of local sports above betting interfaces. In others, player photos and club emblems appeared on ads and social media posts. The Council warned that such practices could mislead users into thinking athletes support these betting platforms.

Surge in Affiliate Marketing Activity

Affiliate advertising has become a major channel for promoting offshore sites to Japanese users. The report highlights that influencers and bloggers promote these platforms through social media and websites. They earn ongoing commissions based on user losses, often between 20–30%.

With the illegal market estimated at ¥6.5 trillion, affiliates may receive up to ¥100 billion in annual payouts. This high revenue potential drives aggressive promotion and has already led to arrests. In recent months, Japanese residents have been charged for aiding illegal gambling through online promotions.

Strategic Response and International Cooperation

The Council emphasized that Japan must step up its regulatory response. Unlike Europe, where countries have adopted frameworks under the Macolin Convention and built national platforms to counter illegal betting and match-fixing, Japan has yet to take similar steps.

To address this gap, the Council is forming a study group with legal experts and sports stakeholders. It will also work with international bodies to develop better safeguards and policies. Future efforts will include public outreach and collaboration with government agencies to tackle both the offshore betting and free-riding markets.