Gambling and casinos in Mongolia

Mongolia is a country with a booming economy and a traditionally strict approach to gambling regulation.

Despite the proximity to the two largest gambling centers in Asia - China and Russia - gambling within the country remains strictly prohibited.

Nevertheless, the growing interest in tourism and foreign investment is forcing the authorities to gradually consider the possibility of legalizing casinos, primarily for foreigners.

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Legislative framework

Gambling is regulated by the Lottery and Gambling Law of Mongolia, adopted in 2006 and updated in 2018.

Main provisions:

• all types of casinos and online gambling are prohibited;
• only state lotteries and sports betting are allowed;
• the organization of any private games for money entails administrative or criminal liability;
• the participation of Mongolian citizens in foreign casinos is not punished, but the state does not regulate such activities.

Control is performed by:

• Ministry of Finance (lottery licensing);
• Mongolia Revenue Authority;
• National Cybersecurity Agency - monitors online activity.

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Historical context

In the Soviet period, gambling was considered a "bourgeois relic," and until the early 2000s, there were no gambling establishments in the country.

After democratic reforms, there were proposals to create casinos for foreigners, but the parliament rejected them due to fears of increased corruption and gambling addiction.

Nevertheless, since the 2010s, discussions have intensified in society about the need to open gambling zones for tourism, especially in border areas.

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Attempts to legalize casinos

Mongolia has taken steps to create legal casinos several times:

• 2008: Ulaanbaatar Casino Bill project - rejected by parliament.
• 2011: proposed law on "Gambling Tourism Zones" for foreigners - frozen.
• 2020-2022: a bill was discussed on the construction of a tourist casino-complex in Darkhan or on the border with China, but no decision was made.

The government indicates that licensed casinos could be a source of foreign currency, but the reform is delayed due to moral and political considerations.

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Permitted types of gambling

1. Lotteries (State Lottery)

Lotteries are the only legal form of gambling in Mongolia.

Their organization is carried out through public or private companies under license from the Ministry of Finance.

The proceeds are used to support sports, health care and education.

2. Sports and horse racing betting

Mongolia is a country with strong equestrian traditions.

National horse races (Naadam Races) are held annually and have cultural significance.

Also legalized bets on professional sports events - football, basketball, boxing, sumo.

Sports betting operators operate under the supervision of the Mongolian Sports Betting Commission.

Online betting is in theory allowed, but only on sites registered in the country.

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Online gambling

Online casinos, poker and slots are officially banned in Mongolia.

The law directly equates internet gambling with illegal entrepreneurship.

However, in practice:

• residents actively use offshore sites (mainly with Curaçao and Philippine licenses);
• VPN and crypto payments are used to bypass locks;
• the state periodically blocks domains, but complete control does not exist.

In 2023, the authorities blocked more than 500 gambling sites, but public interest remains high - especially among young people.

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Financial aspects

The Mongolian economy is experiencing constant demand for currency inflows.

That is why the government is discussing a "casino for foreigners" model similar to South Korea and Vietnam:

• casinos are only available to tourists;
• all settlements are made in foreign currency (USD, CNY);
• Mongolian citizens are prohibited from entering.

This approach would allow the country to generate revenue without affecting domestic moral policy.

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Cryptocurrencies and shadow market

Mongolia is one of the few regions in Asia where cryptocurrencies are not banned, but are tightly regulated.

This has spawned a gray online gambling market, where players use Bitcoin and USDT on foreign sites.

The authorities admit that some of the shadow transactions pass through payment gateways outside the control of the tax authorities, which has led to increased financial monitoring since 2024.

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Taxation

Revenues are directed to the budget and social funds, as well as partially to the tourism development fund.

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Social Position and Responsible Gaming

Mongolia has a strict social policy:

• gambling advertising is completely prohibited;
• The media are required to block "gambling content";
• educational programs emphasize the harms of addiction;
• citizens convicted of organizing games are blacklisted by entrepreneurs.

At the same time, the country is developing "responsible leisure" programs aimed at developing tourism, sports and cultural events as alternatives to gambling.

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Development prospects

The Mongolian government is considering creating integrated resorts with casinos for foreigners in the long term.

Potential destinations:

1. Darkhan and Zamyn-Uud - border zones with China;

2. Ulaanbaatar is a business center with a developed infrastructure;

3. Olonets lakes - recreational projects under the control of the Ministry of Tourism.

The possibility of introducing licenses for online gambling in the future is also being discussed - subject to strict geo-restriction (only for non-residents).

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Gambling in Mongolia remains illegal for citizens, but the state is aware of the economic potential of the industry.

So far, only lotteries and sports betting are allowed, and online gambling is banned.

However, with a growing interest in tourism and regional competition with China and Korea, Mongolia may in the future create a controlled casino sector for foreigners, turning gambling from a "taboo" into a source of sustainable development and foreign exchange earnings.

At the moment, the country adheres to the principle: