What is Fueling Japan's Online Gambling Boom?

May 28, 2025

Just recently, imarcgroup.com released a report claiming that this country's online gambling industry had already hit $8.1 billion. Looking ahead, the institution expects the market to expand to $12.9 billion, demonstrating a compound annual growth rate (CAGR) of about 5.3%. Of course, because of the increasing popularity of online platforms, this industry now draws audiences across multiple divides, including the Japanese people.

But are there any other factors driving its popularity in the country besides online platforms? If so, what are the factors? Well, if these are your questions, you need not worry. This article has been crafted with you in mind and will explore this discussion in depth while highlighting crucial statistical information. So, why don't you stick around?

A Perfect Storm of Mobile Technology

Well, for most people, Japan is one of the global hubs for tech innovations. In fact, according to the World Intellectual Property Organization, the country ranked 14th in innovation outputs in 2024. So, seeing that Statista projects that over 95 million people in the country will own smartphones by 2028 should not actually be surprising.

And as a forward-thinking brand, you'd not want to ignore such trends. This is why industries like the casino adopt responsive designs in their websites and mobile apps. Even with a 1 dollar deposit casino, players can now seamlessly access gambling experiences on their smartphones without pinching or zooming platforms.

After all, no one wants frustrating web experiences just because they use smaller devices to access services. A study by UXCam that goes along these lines revealed that more than eight in ten (85%) of users expect mobile websites to work as seamlessly or even better than their desktop counterparts. However, if they happen to have a bad experience just because you didn't meet this need, about 88% may be less likely to return.

Given the competitive nature of the gambling industry, operators are really working hard to overcome some of these challenges. And beyond just getting ahead of competitors, adopting responsive designs helps ensure these companies can reach as many people as possible.

We have already hinted at how more people in this country are expected to own smartphones. By tailoring your platform for mobile usage, you increase the likelihood of being discovered by new audiences, further explaining why Japan's online gambling industry is expanding.

A Greater Focus on Online Security

With the rising number of online security threat incidents, the need for safe gambling environments has never been as apparent. In fact, looking at the broader e-commerce sector, studies show that 85% of online users want to do more to improve their digital privacy. And in an industry like the casino, where attacks are so popular, you don't expect things to be different.

A recent Global Finance & Tech Network report noted that this country's organizations encounter about 1003 weekly attacks. And just one attack could cost your brand significant losses. One is that a good number of consumers will rarely transact with you again. Actually, some experts approximate this figure to be about 21%. Plus, you may incur serious financial losses that may cost your annual revenues.

Online security has become a critical subject, so many consumers, including gamblers, often survey platforms to ensure they are secure before transacting with them. Realizing these trends, operators, including those targeting the Japanese market, have been turning to more secure infrastructures to strengthen their security efforts.

A good example is two-factor authentication (2FA). Although it sounds quite simple, it can reduce exposure to about 99.9% of targeted attacks. It often improves security by requiring two different forms of verification when logging into an account, besides the username and password. SSL encryption is another security infrastructure that works by securing internet communications between servers and clients, reducing the possibility of unauthorized access.

A Growing Emphasis on Customer Experience

Did you know that, according to Zendesk, nine in ten companies have made customer experience (CX) their primary focus? Modern shoppers, including gamblers, have become more discerning, and companies are working hard to align with them.

That's why you may have seen some Japanese casinos personalize experiences. This ensures players can find experiences that match their unique preferences, which fosters deeper customer relationships. Putting that into perspective, WiserNotify suggests that customizing experiences can improve retention by up to 44%. And the more loyal players become, the more likely the industry will be to grow.

Operators are also aligning with other contemporary preferences, like the growing need for immediate feedback. Most are doing this by integrating live chat, chatbots, etc. Surprisingly, Number Analytics suggests that having responsive customer feedback could increase retention by about 25-30%.

Players no longer want to wait for ages to receive responses to their queries, so operators are adjusting by implementing innovative features to help improve their communication efficiency.

What is Our Final Word?

Well, it shouldn't come as a surprise that IMARC Group expects the Japanese online gambling market to expand by over 5% CAGR within the next few years. Operators have been adjusting to fit modern preferences, making them more relevant.

For instance, to meet the growing need for immediate feedback, they have been implementing features like live support. Plus, personalization is becoming a common way of encouraging return visits. Now that these strategies actually keep players returning, it makes sense to expect the market to expand in the coming years.

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