Mongolian Authorities Ban Most Types of Gaming in Extensive Law Revision
The Mongolian government has taken a significant step towards bolstering the country's economic position by passing a comprehensive ban on almost all forms of gambling, including online gambling and betting. This move, aimed at curbing the outflow of Mongolia's currency and safeguarding the nation's economic security, also includes the legalization of sports wagering under a separate legal framework [1][2].
The revised Law on Licensing prohibits paid prediction games, betting, and online gambling, backed by penalties including fines, community service, travel restrictions, and imprisonment. Repeat offenders using digital means such as e-money, virtual assets, phone numbers or digital IDs to run illegal gambling operations face doubled fines and additional penalties [2].
However, it remains unclear how the government plans to enforce these restrictions specifically against online operators based abroad due to the challenges of jurisdiction and cross-border regulation [2]. Despite these strict domestic measures, authorities have not clarified procedures, technologies, or international cooperation mechanisms to target offshore online gambling operators outside Mongolian jurisdiction [2].
Currently, there are no legal online bookmakers operating inside Mongolia; many Mongolians access offshore betting sites freely, as enforcement of the ban on external operators remains ambiguous [1]. The new legislation will introduce a tightly controlled sports betting sector in Mongolia, providing a legal alternative for citizens who wish to engage in betting activities [2].
The law also prohibits promoting gambling, with individuals engaging in advertising or soliciting such activities being liable to administrative penalties. Organizing such activities for profit, whether in public or online, is now a criminal act under the Mongolian Criminal Code [2].
The hope is that this crackdown will be another step towards bolstering the country's economic position. The government believes that by consolidating a portion of the market under state oversight, they can protect consumers from harm and fraud [2]. The law does not currently appear to envision penalties for individual players engaging in such activities [2].
In conclusion, while Mongolia has legislated a comprehensive ban on gambling including online gambling, the government has not publicly detailed specific enforcement methods against online operators based abroad, which poses practical challenges in implementation and control over offshore gambling services used by Mongolian residents [2][1]. The new legislation will provide a legal alternative for betting through the legalization of sports wagering, aiming to protect consumers and boost the country's economic security.
- Despite the ban on online gambling within Mongolia, many residents continue to access offshore betting sites freely, as the enforcement against external operators remains ambiguous.
- The revised Law on Licensing in Mongolia prohibits online gambling, but it presents practical challenges in implementing restrictions against operators based abroad due to issues with jurisdiction and cross-border regulation.
