Inside the Dark World of Underground Casinos and the Crackdown Operation

Over 40 people arrested all at once

A year of relentless investigation led to the crackdown on an illegal casino group.

The Osaka Prefectural Police arrested 31 employees, including the store manager, Yuki Hisai (43), on charges of habitual gambling by allowing customers to gamble at illegal internet casino establishments in the Kita district of Osaka City. In addition to the employees, the police also arrested 10 customers for simple gambling charges.

“The group led by Hisai managed five casinos in Osaka’s Kita district, including ‘DOUBLE’ and ‘JP.’ The Osaka police began an undercover investigation based on information that illegal casinos were operating within the city of Osaka. About a year later, on January 18 at around 5 p.m., investigators raided the stores and the homes of the employees simultaneously, seizing computers, smartphones, and a total of 53 million yen in cash,” said a reporter from a national newspaper’s social affairs department.

The targeted casinos operated on a 24-hour membership basis. Customers would purchase points at the store and access online casino websites through computers set up in the store. The points earned through slots, baccarat, blackjack, and other games were then exchanged for cash inside the store.

The investigation extended to tracing the workplaces of the customers

During the investigation, a high level of planning to prevent detection was also revealed.

“The stores operated by the group were all located on the third or fourth floors of buildings in the Osaka City North District, designed to be inconspicuous. There were no signs, and at a glance, it was unclear what kind of business it was. Surveillance cameras were installed around the store, and the entrances had double doors. Upon entry, customers would exchange signals through the intercom and present identification to confirm their identity, all done with great care to avoid being detected. The store also took photos of members’ faces and investigated their workplaces” (same source).

Employees gathered customers through street outreach or introductions from regulars, but one had to pass through the store’s strict screening process to become a member.

“The group feared that customers who lost hundreds of thousands of yen might retaliate by reporting the store to the police. To prevent that, membership was tightly controlled. Undercover investigators, who had spent more than a year infiltrating the store without raising suspicion, managed to trace the flow of money and timed the raid to coincide with the arrival of executives who usually made cash collections.

The suspects made sure all money exchanges were done by hand to avoid leaving traces. In many cases of illegal casino busts, even if lower-level managers are arrested, the main perpetrators behind the operation remain untouched. However, due to the persistent investigation, this time the upper management involved in the operation was also arrested” (investigating source).

The Osaka Prefectural Police are continuing their investigation, suspecting that the group led by Hisui might have connections to Toku-ryu and criminal organizations.