Ban or Regulate? Mongolia’s Sports Betting Dilemma

Mongolia's government has launched a forceful campaign against online gambling and sports betting platforms, targeting the ubiquitous 1xbet. While cracking down on illegal operations and the alleged $500 million annual outflow is understandable, the move raises a fundamental question: Is prohibition the most effective long-term strategy? Or is it a costly, and ultimately futile, game of whack-a-mole?

The immediate actions – blocking websites, pressuring Meta to remove accounts, and contemplating a total ban on betting – are presented as a response to the "epidemic" of online gambling addiction and its devastating social consequences. These are genuine concerns.

The government is right to address the financial ruin and social disruption caused by problem gambling and sports betting.

However, Cabinet Secretary Nyam-Osoryn Uchral has also highlighted a critical economic dimension: the massive outflow of funds represents significant lost tax revenue.

This dual threat – social harm and economic damage – strengthens the argument for a regulated, rather than prohibited, gambling market. Experience globally demonstrates that outright bans rarely eradicate online activity. Determined users and operators find workarounds, such as VPN usage.

The activity persists, driven underground or offshore, making it more difficult to monitor, control, and tax. 1xbet's continued presence in Mongolia, despite a previous Communications Regulatory Commission blacklist, is a stark reminder.

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