This might be the only solution they have seen to maintain or to keep their players inside their country, and also to gather more players. This is a good news for gamblers since they don't have to worry about taxation everytime they play. Japan really made a good solution to have more or for the fast growth of their economic situation.
This has been the wishes of every gambling sites which are heavily taxed by the government, they want to spend the money that the government is collecting to market their gambling site because the competition in online gambling is very competitive.
It's also good for Japan they can attract more foreigners to play in the gambling sites located in their country, but I doubt if others will follow Japan's lead, not every country is like Japan but it can be done.
Its like every country has been considering gambling as a good source of income of the nation today to uplift the economy because of economic downfall due to covid 19. And yes this is what we are all longing right, that the world or each country may become considerate to the gambling world. Hopefully that each nation who still banned gambling in their respective country may also be gambling friendly if it is the only way to regain their economy again.