Mongolia’s government has launched a strong campaign against online gambling and sports betting, targeting popular platforms like 1xbet. The crackdown aims to address the estimated $500 million annual outflow from the country. While the government’s actions are understandable, the question arises: is prohibition truly the best approach in the long run?
The government’s immediate steps include blocking websites, pressuring Meta to remove related accounts, and considering a complete ban on online betting. These actions are framed as responses to the growing “epidemic” of gambling addiction and its social impact. This is a legitimate concern. The government is right to act on the financial and social consequences of gambling, as it affects families and communities.
However, Cabinet Secretary Nyam-Osoryn Uchral also pointed out an important economic issue: the significant tax revenue lost due to gambling activities. This economic perspective adds weight to the government’s decision to address the issue. While tackling social harm is essential, the country also risks losing crucial tax income from an unregulated sector.
The ongoing challenge, however, is whether a total ban will work. Experience from other countries suggests that outright prohibitions on online gambling often fail. Determined users and operators tend to find workarounds, like using VPNs. This results in gambling moving underground or offshore, which only complicates enforcement and monitoring efforts.
The persistent presence of platforms like 1xbet in Mongolia, despite previous efforts by the Communications Regulatory Commission to block them, shows the limitations of a ban. It serves as a reminder that, while prohibition aims to stop the problem, it often makes it harder to regulate and control.
Thus, the core issue is whether Mongolia should continue its war on online gambling or shift toward a regulated market. By regulating the industry, the government could minimize social harm while recapturing lost tax revenue. In the end, only a balanced and strategic approach can address both the social and economic impacts effectively.
