Gambling business in Mongolia: online casino and bookmaking
Mongolia is a country with a complicated and rich history, vast territory and very low population density. It is home to about 3 million people in total. One-third of them live in Ulaanbaatar, the capital of the country. This city is an important financial center and transport hub of the Asian region.
Most of the previous century, the country’s political system was closely linked to the ideas of socialism. Mongolia was an important strategic partner of the USSR. Is it worth mentioning that access to any kind of gambling was closed.
In modern times, casinos in Mongolia tried to legalize three times: in 1998, in 2007, 2009 and 2012. All these attempts were unsuccessful. Since 1999, the country has adopted a law banning the activities of casinos. But, in 2017, the authorities finally created a working group, which will work on the development of legislation on casinos.
The reason for changing the state’s attitude to the ban on gambling is simple. These are potential profits. If you legalize all casinos in the country, it will bring the treasury in the form of taxes from 75 to 130 billion tugriks annually. It is also at least 3000 legal jobs with good pay and a social package.
The plans for the coming years include the construction of several casinos on the borders with neighboring states. The first casino will be located on the border with Russia in Altanbulag on the Ulan-Ude – Ulan-Bator highway. The second will be on the border with China in Zamyn-Uude near the international airport under construction. It is expected that tourists, not the local population, will visit them. As for rich Mongolians, they prefer to visit casinos in Macao, Kazakhstan, South Korea, and other Asian countries.
Mongolian National Lottery
As in many other countries with a ban or no regulation, Mongolia has the only legal type of gambling. This is the lottery. More specifically, the Mongolia National Lottery (Mongolian Үндэсний Lottery / Mongolia National Lottery).
Even though formally the lottery is considered a state lottery and the authorities take a significant share of income, the owner of the Mongolian National Lottery is a private company BizINVIN LLC. All management is done by Modern Capital Vest LLC, a Singapore-based company.
The lottery is very popular. In 2017, one woman won 500 million togrogs (about 200 thousand dollars). For most locals, this is a huge sum, equal to about 500 monthly incomes of an average household.
The second reason for the popularity of the lottery is that the chance to win is quite high. In the same year 2017, according to the reports of the tax service, the prize payments took 5 billion togrogs, which (unevenly) were distributed among 120 thousand winners. That is, taking into account the size of the country’s population, at least once won approximately every 30th resident of Mongolia.
Rules in respect of civil servants
As in neighboring China, government officials are strictly prohibited from visiting casinos and sweepstakes. Servants of the people who have seen such entertainment are demonstratively removed from their posts. Despite such serious punishment, such cases occur regularly.
In April 2019, the Government of Mongolia banned high-ranking officials and civil servants from visiting casinos and gambling both within and outside the country to increase the confidence of the people in the authorities. This is interpreted as a violation of the code of ethics for civil servants.
The current state of the gambling market in Mongolia
Despite the formal ban, there are currently about 150 gambling companies operating in the country.
In terms of online, according to the sites with casino reviews, more than 200 sites offer their services to the Mongolians around the clock.
The most important point is that casinos are prohibited in the country, but this applies to ground establishments. Online is not regulated in any way!
The lack of licensing means that all these sites work unofficially. On the other hand, the Mongolian government still has no technical capacity to block and harass such sites. Neither does it have special legislation under which such blocking can be implemented. Nor does it have a special oversight body.
For this reason, the operation of online casinos and betting sites in Mongolia cannot be called illegal. Anyone can launch their projects and advertise them to the people of the country.
How to open an online casino in Mongolia
Mongolians, in terms of gambling, are not too different from other nations. They willingly play slots, roulette, poker and other types of virtual entertainment. They make bets on sports, including its national types.
If you want to start your own business in Mongolia and engage in sports betting or slots, the actions will be as follows:
- take a look at the sites popular in the country;
- identify the most popular types of entertainment;
- select a suitable provider of sports lines and games;
- sign a contract, get all the software you need;
- get involved in promoting your business.
Betronic Software company has extensive experience in launching online casinos and betting sites, including the market in Mongolia. Contact our representatives via the feedback form or online chat and they will tell you how to launch your own business in this country quickly.
The lack of regulation of the online gambling industry works in favor of entrepreneurs. Sites are not blocked in any way, taxes are not levied, and there are no laws expressly prohibiting the opening of such a business. Therefore, gambling in Mongolia is relatively free. Of the disadvantages can only be called that a small number of people from which only a third of the population lives in cities and has access to the good Internet.