The Debate Over Sports Betting Regulation in Mongolia
Mongolia’s Government Targets Online Gambling and Sports Betting Platforms
The government of Mongolia has recently launched a strong campaign against online gambling and sports betting platforms, with a particular focus on the popular platform 1xbet. The crackdown aims to tackle illegal operations and the estimated $500 million annual outflow, but it raises the question of whether prohibition is truly the most effective long-term strategy or merely a costly and futile game of whack-a-mole.
Immediate actions taken by the government include blocking websites, pressuring Meta to remove accounts, and considering a total ban on betting. These measures are presented as a response to the growing “epidemic” of online gambling addiction and its negative social impacts, which are genuine concerns.
While addressing the financial ruin and social disruption caused by problem gambling and sports betting is crucial, Cabinet Secretary Nyam-Osoryn Uchral has also emphasized the critical economic dimension. The massive outflow of funds represents a significant loss in tax revenue for the government.
The dual threat of social harm and economic damage further strengthens the argument for a regulated gambling market rather than a prohibited one. Global experience has shown that outright bans rarely eliminate online activity, as determined users and operators often find ways to circumvent restrictions, such as using VPNs.
In light of these considerations, Mongolia’s government is facing a complex dilemma regarding the future of online gambling and sports betting within its borders. Finding a balance between addressing social concerns and maximizing tax revenue will be crucial in determining the most effective and sustainable approach moving forward.
