Mongolia to Legalize Sports Betting While Banning All Gambling

Mongolia has taken a firm stance on gambling, approving new legislation that legalizes sports betting while banning all other gaming activities.

The government believes this move will curb economic crimes, prevent fraud, and stop unauthorized currency transfers from weakening the nation’s financial security.

Officials argue that illegal gambling has contributed to significant financial losses and has exposed thousands of Mongolians to online fraud.

With strict penalties and advertising restrictions, the country is setting a new precedent for gambling regulation in the region.

Mongolia to Regulate Sports Betting While Imposing a Nationwide Gambling Ban

Key Points:

• Mongolia has legalized sports betting under a special licensing system while banning all other forms of gambling.
• New laws aim to prevent economic fraud and stop unauthorized currency transfers linked to illegal gambling operations.
• Tougher penalties will be imposed on individuals and companies that support or facilitate illegal gambling activities.

Government Approves Strict Gambling Reforms

In a Cabinet meeting held on 6 March, the Mongolian government approved a new sports betting law while introducing a nationwide ban on all other forms of gambling.

The legislation establishes a strict licensing system for sports betting operators, ensuring compliance with government regulations. However, casino games, poker, and online gambling remain strictly prohibited under the updated framework.

The government justified the decision by highlighting the significant financial and social risks associated with unregulated gambling. Officials argued that illegal betting operations contribute to economic crimes, fraud, and the transfer of national currency abroad, which could destabilize the country’s economy.

Economic Security and Crime Prevention

Chief Cabinet Secretary Uchral Nyam-Osor provided alarming statistics on the impact of illegal gambling:

• MNT 417.2 billion (€133 million) in financial losses were recorded in 2023 due to gambling-related crimes.
• Over 200 economic crimes were linked to illegal gambling activities, with most offenders aged 18 to 39.
• MNT 1.7 trillion ($500 million) was transferred from Mongolia to foreign countries, raising concerns over financial security.

While Mongolia’s Communications Regulatory Commission has already blocked 6,000 online gambling domains, many illegal operators simply change their website addresses to evade restrictions.

Nyam-Osor emphasized that existing fines for illegal operators are too low to deter violations. The current penalty for unlicensed gambling activities is just MNT 13 million (€4,100)—a negligible amount compared to the profits of illicit gambling businesses.

New Criminal Penalties and Advertising Ban

To strengthen enforcement, the Mongolian government has proposed several amendments to national laws, including:

• Criminal Code Revisions – Individuals who facilitate illegal gambling through payment accounts, e-wallets, telecom networks, or email addresses will face legal penalties.
• Advertising Restrictions – The Law on Advertising will be amended to ban all gambling-related advertisements, including promotions for paid puzzles or similar gaming content.
• Fines for Illegal Gambling – Individuals caught gambling illegally will face fines of MNT 100,000 (€32) under the Law on Offenses.

The government believes these measures will significantly reduce the accessibility and appeal of unauthorized gambling while ensuring sports betting operates within a controlled and transparent framework.

What’s Next for Mongolia’s Gambling Market?

• With sports betting now legal, Mongolia is expected to introduce further regulations on licensing and compliance for betting operators.
• However, the complete ban on online casinos and other gambling activities may push some players toward unregulated offshore platforms.
• As the government tightens its grip on illegal gambling, industry stakeholders will be closely watching how these policies impact the country’s gaming landscape.

One thing is clear: Mongolia is making a decisive move to reshape its gambling industry, balancing revenue opportunities with strict regulatory oversight.