Bangladesh iGaming Market Licensing: A Complex Landscape

The iGaming market in Bangladesh operates under a legal framework that has remained largely unchanged since the 19th century. The Public Gambling Act of 1867, the primary law governing gambling activities, prohibits most forms of gambling and gaming houses. However, this law does not address online gambling, leading to regulatory ambiguities that present challenges for operators, players, and policymakers.

The Public Gambling Act of 1867

The Public Gambling Act is a colonial-era law designed to regulate traditional gambling practices such as dice games and card games. The law explicitly bans public gambling and the operation of common gaming houses, with penalties including fines and short-term imprisonment. However, it does not define or regulate digital or online gambling platforms, as these did not exist at the time of its enactment.

Despite its outdated scope, the law remains the principal legal instrument for controlling gambling in Bangladesh. This results in enforcement actions being limited to physical establishments, leaving online gambling platforms in a legal gray area.

Online Gambling: A Legal Gray Area

The absence of specific regulations for online gambling has created a situation where neither operators nor players have clarity regarding their rights or responsibilities. Offshore gambling platforms, such as Baji, operate in this ambiguous environment, offering services to Bangladeshi players without local oversight.

Platforms like Baji leverage this lack of regulation to provide betting and gaming options, including sports betting, live casino games, and slots. However, they do so without formal licenses from the Bangladeshi government. Baji, for instance, operates under an international license, often issued by jurisdictions like Curacao or Malta. This allows the platform to function legally in its country of registration but not under Bangladeshi law.

Licensing and Oversight Challenges

Bangladesh has no formal licensing framework for online gambling operators. This regulatory gap makes it impossible for platforms to seek legitimacy through local licensing. Without such a framework:

• Authorities lack the ability to monitor and regulate gambling activities effectively.
• Operators have no legal pathway to establish themselves as compliant entities.
• Players remain unprotected from issues such as fraud, lack of accountability, or exploitation.

While enforcement against online gambling is sporadic, the government has occasionally taken action, including blocking access to gambling websites. Authorities also use broader laws, such as the Digital Security Act and Money Laundering Prevention Act, to prosecute gambling-related activities. However, penalties under the Public Gambling Act are minimal, reducing the deterrent effect of enforcement efforts.

Calls for Regulatory Reform

The rapid growth of online gambling has fueled discussions about the need for updated regulations. Policymakers and industry experts advocate for a licensing system that could:

• Generate revenue through taxes and licensing fees.
• Protect players with measures such as age restrictions, responsible gambling tools, and dispute resolution mechanisms.
• Establish anti-money laundering protocols to prevent financial crimes associated with gambling.

Bangladesh already has regulatory frameworks for lotteries and horse racing, demonstrating that a controlled gambling ecosystem can coexist within the country’s socio-economic context. These existing structures could serve as a foundation for developing an online gambling licensing framework.

Social and Cultural Barriers

Efforts to regulate online gambling face resistance due to religious and cultural factors. As a predominantly Muslim country, Bangladesh has significant opposition to gambling from religious leaders and conservative segments of society. Any move toward regulation would need to balance economic benefits with public sentiment, requiring extensive public consultation and careful policymaking.

The Role of International Operators

Platforms like Baji illustrate the opportunities and risks of the current unregulated environment. While they cater to the growing demand for iGaming in Bangladesh, their offshore licenses mean they are not subject to local laws or protections. This creates potential risks for players, including:

• Limited recourse in cases of disputes or fraudulent activity.
• Data security concerns due to the lack of regulatory oversight.
• Lack of transparency in financial transactions and payouts.

Future Potential

Bangladesh has an opportunity to modernize its gambling laws to address the realities of the iGaming sector. A comprehensive licensing framework could support the development of a regulated market, providing economic benefits while ensuring consumer protection. However, achieving this will require navigating cultural sensitivities, public sentiment, and the challenges of adapting an outdated legal system to the digital age.

This detailed exploration highlights the complexities of the iGaming licensing landscape in Bangladesh and the pressing need for regulatory reform.