Mongolia Outlaws Most Forms of Gambling in Sweeping Legal Overhaul

Mongolia’s Parliament has officially passed sweeping revisions to the Law on Licensing that will prohibit almost all forms of gambling in the country. While severe, authorities hope this crackdown will be another step towards bolstering the country’s economic position. It remains unclear how the government will enforce these restrictions when it comes to online operators based abroad.

Organizing and Promoting Gambling Is Now Prohibited

The updated legislation completely bans paid prediction games, betting, and online gambling. Organizing such activities for profit, whether in public or online, is now a criminal act under the nation’s Criminal Code. Violators face substantial financial penalties, mandatory community service ranging from 240 to 720 hours, up to one year of travel restrictions, and six months to three years behind bars.

The law also targets repeat offenders utilizing payment accounts such as e-money, virtual assets, phone numbers, or digital identifiers, either owned or borrowed, to run illegal gambling operations. Financial penalties are double these for first-time offenses, in addition to the same community service duties, travel bans, or imprisonment for up to a year.

According to the new legislation, promoting gambling is also strictly prohibited.  Individuals engaging in advertising or soliciting such activities are liable to administrative penalties, such as fines under the Law on Administrative Violations. Illegal advertising falls under the same legal framework. The law does not currently appear to envision penalties for individual players engaging in such activities.

Sports Wagering Could Receive Separate Legislation

According to government officials, the move will curb the outflow of Mongolia’s currency and safeguard the nation’s economic security. However, despite being framed as a matter of public interest, effectively enforcing the new measure could be challenging. Mongolian customers willing to circumvent restrictions can already engage with offshore operators through mobile platforms. Such services have been notoriously difficult to prosecute.

The prohibition on gambling is not entirely absolute, however. In March, the government spearheaded a separate legal framework to legalize and regulate sports wagering. Lawmakers note that this measure should protect consumers from harm and fraud by consolidating a portion of the market under state oversight and providing bettors with a legal alternative.

Meanwhile, the new legislation sends a clear message:  the days of unlicensed online casinos and independent betting shops operating freely in Mongolia are over. The real test will be several months down the line, when it will become clear how authorities plan to crack down on black market operators while introducing a tightly controlled sports betting sector.