A Tokyo man faces prison for online gambling, highlighting Japan’s strict stance on illegal betting and affiliate marketing.
Key Takeaways:
- Makoto Chomabayashi potentially faces 5 years in prison for online gambling and affiliate activities
- He allegedly wagered $194 million, the largest individual sum in Japanese history
- Japan is intensifying efforts to combat illegal online gambling and related marketing
Record-Breaking Online Gambling Case Shocks Japan
In a case that has sent ripples through Japan’s underground gambling scene, Makoto Chomabayashi, a 38-year-old company worker from Fukushima Prefecture, is facing up to five years in prison for engaging in illegal online gambling activities. The Tokyo resident allegedly wagered a staggering 28 billion yen (approximately $194 million) since August 2022, a sum believed to be the largest ever gambled by an individual in the country.
The Charges and Potential Consequences
Chomabayashi’s legal troubles stem from two primary offenses. First, he faces charges for habitual gambling, which carries a maximum sentence of three years. Additionally, he is accused of acting as a casino affiliate, promoting the online casino Stake in exchange for a 2% commission on wagers placed by his referrals. This affiliate activity could add another two years to his potential sentence.
According to reports, Chomabayashi’s cooperation with authorities and lack of prior criminal history may mitigate his sentence. However, the case underscores Japan’s strict stance on online gambling and related marketing activities.
The Scale of the Operation
The scale of Chomabayashi’s gambling activities is unprecedented. He primarily bet on baccarat using Stake, an international casino site operated by Medium Rare N.V. and licensed in Curaçao. Despite his extensive wagering, Chomabayashi reportedly lost more than $270,000 to his gambling habit.
As a casino affiliate, Chomabayashi is believed to have directed over 100 people to Stake, earning approximately $48,000 in commissions. This aspect of his activities has drawn particular attention from law enforcement, as Japan cracks down on affiliate marketing in the gambling sector.
Japan’s Broader Gambling Landscape
Chomabayashi’s case has shed light on the broader issue of online gambling in Japan. A National Police Agency survey revealed that an estimated 3.37 million Japanese citizens have used online casinos, with annual bets totaling over $8 billion. Alarmingly, up to 40% of these users were unaware that online gambling is illegal in Japan.
In response to these findings, the Japanese government has revised its policies on illegal gambling. Authorities are now implementing harsher penalties, particularly targeting affiliate marketers and third-party payment processors. The National Police Agency reported a 160% increase in arrests related to online casino activity in 2023, with 279 Japanese citizens apprehended.
As this high-profile case unfolds, it serves as a stark reminder of the legal risks associated with online gambling and affiliate marketing in Japan’s strictly regulated gambling landscape.
