Illegal sports betting in Japan has reportedly soared
Emerging trends indicate a significant rise in illegal betting, particularly focused on baseball, in Japan, as highlighted by a recent comprehensive study.
Ippei Mizuhara, the former interpreter for MLB star Shohei Ohtani, is facing a 57-month prison sentence after surrendering to federal authorities. His conviction stems from embezzling around $17 million from Ohtani to sustain his gambling addiction. As reports circulate about Mizuhara’s crimes, he has become a social pariah in Japan, where Ohtani is celebrated as a national hero. Mizuhara’s background, originating from Tomakomai, has intensified scrutiny regarding gambling-related activities, especially regarding the implications of his actions on Japan’s burgeoning sports betting scene.
A staggering ¥6.45 trillion (approximately $44.6 billion) was reportedly wagered by Japanese citizens on overseas sports betting sites last year, even as these platforms remain illegal. This data, released by the Council for Sports Ecosystem Promotion (CSEP), reveals a burgeoning underground market for illegal sports wagering, with very few arrests made despite the explosive growth in gambling activity.
Analyzing the recent trends, it’s evident that nearly ¥1 trillion of the illegal bets involved domestic Japanese sports. Such numbers raise vital questions about the gambling culture in a nation known for its strict laws against illegal betting.
A Black Eye for Japanese Baseball
The situation intensified following revelations that two members of the Yomiuri Giants, Luis Okoye and Daiki Masuda, are under investigation for illegal online gambling. Both players reportedly lost substantial sums on various games, with Okoye wagering approximately ¥7 million on online casino platforms like baccarat and blackjack.
In response to these incidents, the Nippon Professional Baseball (NPB) began investigating allegations against 14 players across seven teams for similar infractions, demanding accountability within the sport.
Echoes of the ‘Black Mist’ Scandal
The 2015 scandal involving the Yomiuri Giants remains a somber reminder of the potential consequences of gambling infractions within Japanese baseball. Evidence surfaced showing player engagement in wagering activities, including participation in matches at both the high school and the professional level. Investigative reports revealed that pitchers such as Shoki Kasahara and Ryuya Matsumoto orchestrated bets on various games, raising alarms about the integrity of the sport.
While none of the players were found to have engaged in match-fixing, inquiries investigated potential connections to organized crime, echoing shades of the historic “Black Mist” scandal from nearly five decades ago when players colluded with the infamous Yakuza syndicate.
Illegal Markets Outpacing Sports Lottery Betting
The data from CSEP indicates a staggering preference among bettors for domestic baseball, which topped the betting handle at ¥528.1 billion in 2024. This figure far surpassed that of other sports, such as soccer at ¥333.4 billion and basketball at ¥86.9 billion. Despite the popularity of horse racing, broader betting on sports faces significant restrictions in Japan.
Legal sports betting avenues are limited primarily to government-operated sports lotteries, which offer minimal options. Reports indicate that in fiscal year 2024, Japanese bettors placed ¥133.6 billion in sports lottery wagers—approximately 48 times lower than the offshore gambling volume.
Mizuhara’s Unprecedented Wagering Patterns
Ippei Mizuhara’s background sheds light on the extreme gambling culture prevalent among some individuals. After relocating to Los Angeles, Mizuhara developed a close relationship with Ohtani while serving as his interpreter and confidant. Unfortunately, Mizuhara’s gambling habits spiraled out of control—over 37 months, he placed around 19,000 wagers, culminating in an astounding net loss totaling $40.2 million from an illegal betting operation.
The Mizuhara saga will be adapted into a storyline for the iconic animated series “The Simpsons,” serving as a cautionary tale in the face of rampant gambling culture.
Reports about Mizuhara’s illicit activities have raised concerns that Ohtani was complicit, a claim later refuted by Mizuhara. Inappropriately leveraging Ohtani’s identity, Mizuhara orchestrated sizable wire transfers under false pretenses. Fortunately, Ohtani remains exonerated from any wrongdoing.
Reactions in Japan
In Japan, Ohtani is venerated, akin to Babe Ruth, and his recent performance has solidified his legacy. As he returned home for the Tokyo Series, Ohtani impressed fans with his formidable skills, further distancing himself from the controversy surrounding Mizuhara.
He affirmed his commitment to maintaining integrity in the sport, firmly denying any personal involvement in gambling. Following a record-setting year, Ohtani achieved remarkable milestones within Major League Baseball, focusing on his accomplishments while the scandal lingered in the background.
Japanese media has vocalized criticism of Mizuhara, viewing him as the architect of shame for Ohtani and the sport, spotlighting the importance of transparency and responsibility.
A Plan to Combat Illegal Betting
The gambling landscape in Japan is on the brink of transformation, with MGM Resorts recently breaking ground on an $8.9 billion casino resort in Osaka, projected to open in 2030. While this development marks significant progress toward regulated gambling, uncertainty looms regarding the future of sports betting legalization.
In light of escalating illegal betting operations, global initiatives have emerged, such as information-sharing partnerships with the Council of Europe as an operational base. These initiatives aim to address and mitigate sports manipulation through international collaboration and adherence to established legal frameworks.
As Japan contemplates its strategy to combat illegal gambling, there is an urgent need for systemic changes that uphold integrity and promote responsible betting practices within the sports industry.
