A Japanese lawmaker was arrested on suspicion of accepting bribes from Chinese online gambling operator 500.com Ltd. along with three company employees. The probe could affect development of Japan’s gaming policy.

Tsukasa Akimoto, a lower house member of the ruling Liberal Democratic Party, was arrested Wednesday by Tokyo prosecutors. He was charged with receiving 3 million yen ($27,400) in cash from 500.com. The New York-listed Chinese online lottery company also covered about 700,000 yen of traveling expenses for the lawmaker, who is deeply involved in crafting Japan’s gaming policy, according to prosecutors.

Shenzhen-based 500.com is trying to participate the development of a casino resort project in Hokkaido. Prosecutors also arrested three people from the company, including its Japanese representative Zheng Xi and advisers Masahiko Konno and Katsunori Nakazato.

The investigation could be further expanded. Prosecutors also conducted raids Wednesday on another member of the Liberal Democratic Party and the office of the party’s former lower house member.

Chinese state-backed chipmaker Tsinghua Unigroup, a major shareholder of 500.com, told Reuters that it was in active discussions with 500.com’s management on the investigation in Japan.

Contact reporter Denise Jia (huijuanjia@caixin.com)