Mongolia legalises sports betting, cracks down on illegal gambling

March 14, 2025

Mongolia legalises sports betting, cracks down on illegal gambling

The Mongolian government has passed a law allowing sports betting under a special licence while banning all other types of gambling. Officials say this step is necessary to protect people from fraud and crime while stopping money from leaving the country, which they see as a threat to economic security.

A new licensing system for sportsbooks will be introduced to ensure transparency and prevent illegal activities. The government has also proposed a new set of penalties for illegal gambling activities. People caught gambling illegally could face fines of up to MNT 100,000 ($28.83). The government is also making changes to existing laws to punish those who allow illegal gambling by using their personal accounts, payment platforms, money exchange services, or telecom networks.

Explaining why stricter laws are needed, Chief Cabinet Secretary Uchral Nyam-Osor said, “According to a survey conducted by the National Statistics Committee, 200 economic crimes were registered in 2023, amounting to a loss of MNT 417.2bn ($144m) as of 2024.”

He added, “Mainly young people aged 18-39 were involved in these crimes. Financial investigation data shows that MNT 1.7tn ($541.8m) has been transferred from Mongolia to foreign countries.”

Despite restrictions imposed by the Communications Regulatory Commission on 6,000 domain addresses linked to online gambling, Nyam-Osor noted that these sites continue to operate by changing their links. “Moreover, the Antimonopoly Agency has imposed fines on law-breaking enterprises, but according to the laws in force, the penalty amounted to just MNT 13m. Therefore, we are going to amend the relevant laws to ban such activities,” added Nyam-Osor.

Moreover, the government is also planning to crackdown and enforce stricter regulations on gambling-related advertisements and paid-for puzzle games.

Expert insights on Mongolia’s move

Speaking exclusively to SiGMA News, a Gaming & Esports Consultant anonymously reviewed Mongolia’s regulatory approach, highlighting both opportunities and challenges:

Opportunities :

Economic boost – Tax revenues from sports betting can support public services and infrastructure.
Consumer protection – A regulated system ensures transparency, prevents fraud, and combats illegal betting.
Investment potential – Could attract global operators, fostering job creation and tech innovation.
Regulatory challenges – Effective enforcement is crucial to prevent illegal gambling and ensure compliance.
Social impact – Responsible gambling measures are essential to mitigate addiction risks.

Challenges:

Regulatory enforcement – Ensuring compliance and preventing illegal operators.
Offshore & illegal betting – Risk of consumers turning to unregulated platforms.
Sports integrity risks – Increased chances of match-fixing and corruption.
Sports betting addiction – There is a need for responsible gaming measures and public awareness.

“If executed well, this move could be a model for controlled betting ecosystems in emerging markets,” the consultant added.

Economic impact

Mongolia has been struggling with illegal gambling for years, leading to large financial losses recorded due to unregulated transactions. In 2023 alone, economic crimes linked to gambling resulted in losses amounting to MNT 417.2bn ($144m). The government’s decision to legalise and regulate sports betting is seen as an attempt to bring transparency to the sector while preventing further money from leaving the country.