Corruption scandals that have plagued Japan’s casino legalization process mainly center on the country’s integrated resort, or IR, policy. Japan did not legalize ordinary standalone casinos; it created a tightly controlled IR model combining casinos with hotels, convention centers, exhibitions, entertainment, restaurants, and tourism facilities. Unlike online gaming topics such as Blueprint slots, Japan’s controversy focused on land-based casino resorts tied to national tourism strategy.
How Japan Legalized Casinos
Japan’s casino legalization process began with the 2016 Promotion Act and moved into practical regulation through the 2018 Act on Development of Specified Integrated Resort Districts. The law created a system for local governments and private operators to propose IR districts, while also setting rules for casino licensing, entry restrictions, addiction prevention, anti-money laundering controls, and national supervision.
The Japan Casino Regulatory Commission was established on January 7, 2020, as an external bureau of the Cabinet Office. Its mission is to maintain public order, ensure safety, examine casino business licenses, supervise operators, regulate casino devices, prevent addiction, and cooperate with foreign regulators.
The 500.com Bribery Scandal
The 500.com bribery scandal became the most damaging corruption case connected to Japan’s casino rollout. 500.com, later known as BIT Mining Ltd., was a Shenzhen-based online sports lottery company that wanted to enter Japan’s new IR market. Reuters reported in December 2019 that Japanese media identified 500.com as the company accused by Tokyo prosecutors of bribing lawmakers in hopes of building a casino in Japan.
U.S. authorities later confirmed the broader international corruption scheme. The Department of Justice said BIT Mining, then known as 500.com, admitted that between 2017 and 2019 its former CEO, employees, and agents agreed to pay about $1.9 million in bribes and intermediary payments to Japanese officials. The payments were allegedly made through cash, travel, entertainment, gifts, sham consulting contracts, and false accounting entries.
The U.S. Securities and Exchange Commission described the scheme as even wider in accounting terms, stating that illicit payments totaled approximately $2.5 million and included cash bribes, entertainment, and extravagant trips. BIT Mining agreed to pay a $4 million SEC civil penalty, while the DOJ announced a $10 million criminal penalty under a deferred prosecution agreement.
Tsukasa Akimoto’s Conviction
Tsukasa Akimoto’s case gave the scandal its political center. Akimoto was a former member of Japan’s House of Representatives and had been involved with IR-related policy. In 2021, the Tokyo District Court sentenced him to four years in prison without suspension and fined him nearly ¥7.6 million after finding him guilty of receiving bribes linked to a proposed casino scheme in Hokkaido.
Japan’s Supreme Court confirmed Akimoto’s sentence in December 2024 by rejecting his appeal. The case involved bribes worth about ¥7.6 million from Masahiko Konno and Katsunori Nakazato, advisers connected to 500.com, which had been interested in a Hokkaido IR license. Konno and Nakazato were also found guilty of bribing Akimoto and received suspended prison sentences.
Why the Scandal Hurt Public Trust
The scandal hurt public trust because casino legalization was already controversial in Japan. Supporters argued that IRs would attract tourists, create jobs, and help regional economies. Critics warned that casinos could increase gambling addiction, money laundering risks, organized crime exposure, and political influence-buying.
The Akimoto case appeared to confirm the fears of opponents. A newly legalized, high-value industry was being shaped while foreign operators, local politicians, consultants, and prefectures were positioning themselves for licenses. Even though 500.com never won an IR license, the attempt to influence the process showed how valuable those licenses were expected to become.
Impact on Hokkaido and Other Casino Plans
Hokkaido was one of the areas connected to 500.com’s ambitions. The governor of Hokkaido decided in November 2019 not to propose the prefecture as a candidate site in the first phase of casino liberalization, a decision made before the bribery allegations became public.
The wider IR rollout also slowed. Osaka became the first approved project, while Nagasaki’s proposal was later rejected. As of July 2026, Osaka remains the only formally approved IR project, and Japan has confirmed a second application window for local governments from May 6 to November 5, 2027.
Current Status of Japan’s Casino Legalization
Japan’s casino legalization process has not stopped, but it has become more cautious. MGM Osaka, led by MGM Resorts International and Orix, is planned for Yumeshima in Osaka Bay and is expected to open in 2030. The project is designed as Japan’s first integrated resort, combining gaming with hospitality, entertainment, meetings, exhibitions, and tourism infrastructure.
The regulatory lesson is clear: Japan wants casino revenue, but only under strict public supervision. The JCRC’s role, the DOJ and SEC actions, Akimoto’s prison sentence, and the slow pace of new licensing all show that Japan’s IR market is being built under heavy scrutiny.
Key Takeaway
Corruption scandals that have plagued Japan’s casino legalization process did not cancel the country’s casino ambitions, but they changed the tone of the entire rollout. The 500.com bribery scheme, Akimoto’s conviction, and the later U.S. enforcement actions exposed the risks of political access in a high-value licensing market. Japan’s challenge now is to prove that its casino industry can grow without repeating the misconduct that damaged public confidence at the start.
