Criminalizing Paid Predictions, Betting, and Online Gambling Becomes Law in Mongolia
In the world of international gambling, Mongolia's recent ban on the industry may not significantly impact the global market, as the country's market has never been a major player for global operators. This move, however, is a reflection of the stringent regulatory environment typical in the region.
Across Asia, countries like China, South Korea, and Mongolia's region have some of the strictest gambling laws, characterised by extensive prohibitions, severe penalties, and targeted government enforcement actions.
China, for instance, completely bans all forms of gambling, with Macau as an exception. Since 2019, China has intensified control over Macau’s gaming sector, enforcing strict customer scrutiny and banning proxy betting to combat money laundering and illegal activities linked to casino junkets.
South Korea limits legal gambling to specific types, such as horse racing, cycling, and lotteries. Casinos are allowed, but only one caters exclusively to foreigners. The government has maintained a tough stance with strict penalties against illegal gambling, reflecting the country's strict legislative approach.
Regarding Mongolia, while not detailed explicitly in the 2021 data, it shares a similar regulatory environment. The implications for Mongolia's gambling market include a constrained legal space, with a high risk of underground or unregulated gambling activities as operators and players circumvent restrictive laws.
This crackdown has implications such as limiting market growth prospects for legitimate operators in Mongolia and neighbouring countries, pushing gambling further underground, and complicating efforts to regulate online gambling effectively. It also stresses the need for more nuanced policies balancing regulation with consumer protection and economic opportunities.
Stakeholders who had hoped for liberalization in untapped Asian jurisdictions may be disappointed by Mongolia's decision. Meanwhile, other parts of Asia are taking different approaches to gambling. India is considering a national online gaming ban, Karnataka is pushing for online betting outlawing, Thailand is exploring casinos to attract tourists, and the UAE is expected to open land-based casino markets shortly.
The legislation in Mongolia also covers prediction markets, suggesting that regulators are monitoring operators like Polymarket closely. Interestingly, Polymarket, a platform that has seen strong growth internationally, is preparing to re-enter the U.S. market but was banned from Australia starting today.
As the landscape of gambling regulations evolves across Asia, it's clear that each country is navigating its unique path to balance social risks, consumer protection, and economic opportunities. The developments in Mongolia serve as a reminder of the complexities and challenges inherent in shaping policies around this industry.
- The regulatory trends in Asia, such as the recent ban on casinos in Mongolia, reflect a general news story of stringent gambling laws in countries like China, South Korea, and Mongolia's region, characterized by extensive prohibitions, severe penalties, and targeted government enforcement actions.
- The prohibition of casinos in Mongolia, as part of the country's stringent gambling regulations, could potentially lead to a surge in unregulated gambling activities, a risk that is also parallel to the implied implications for gambling markets in neighboring countries, thus limiting the market growth prospects for legitimate operators.
