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Inside Bangladesh’s sweeping new gambling law

Neha Soni
Written by Neha Soni

Bangladesh has formally replaced the Public Gambling Act 1867 with the Gambling Prevention Act 2026, introducing a legal framework that targets online gambling, sports betting, cryptocurrency-linked transactions and gambling-related financial crime.

The legislation received took effect on 1 July following its publication in the official gazette and receipt of presidential assent. The law replaces a colonial-era law that was primarily designed to regulate physical gambling houses. The move comes amid growing concerns about online gambling and its links to illicit financial activity. According to a 2024 report, more than five million people in Bangladesh are affected by online gambling addiction, while authorities have increasingly linked gambling networks to illegal financial flows and abuse of digital payment channels.

Why Bangladesh replaced the 1867 gambling law

The Public Gambling Act was enacted during British colonial rule and focused largely on physical gambling premises and conventional betting activities. Government officials argued that the legislation was no longer capable of addressing gambling operations conducted through websites, mobile applications, social media platforms, digital wallets and cross-border payment systems.

Mir Mohammad Mohi Uddin Rafi, a corporate legal professional and independent legal researcher, told SiGMA News that the reform reflects how gambling activity has evolved beyond traditional betting environments. “The earlier legal framework was enacted in a period when gambling was primarily associated with physical premises and conventional betting activities, making it insufficient to address the complexities of today’s digital environment.”

“In recent years, gambling risks have expanded into a technology-driven ecosystem involving online betting platforms, mobile applications, websites, digital wallets, social media channels, cross-border transactions and other digital infrastructures.”

Online gambling moves to the centre of regulation

One of the key changes is the law’s treatment of online gambling. Unlike the 1867 legislation, which contained no provisions covering internet-based gambling, the Gambling Prevention Act 2026 explicitly regulates online gambling, remote gambling, digital gambling platforms, online betting, sports betting, bookmaking, virtual casinos, VPN-enabled gambling, match-fixing, spot-fixing and cryptocurrency-linked gambling activities.

The law also expands the definition of gambling premises beyond physical locations to include websites, mobile applications, social media groups, servers, domains and data centres used to facilitate gambling activities.

The expansion reflects broader concerns among regulators that gambling has increasingly migrated to digital channels. The Bangladesh Financial Intelligence Unit (BFIU) suspended 21,725 Mobile Financial Service accounts in 2023 over alleged links to online gambling and illegal hundi activities. Authorities have also reported that approximately 55,000 Mobile Financial Service accounts have been frozen or suspended over suspected links to online gambling and digital hundi transactions. Digital hundi transactions refer to the informal cross-border money transfers that operate outside traditional banking channels.

Digital enforcement, financial crime take centre stage

The Gambling Prevention Act 2026 grants authorities powers that did not exist under the previous law, including the ability to block gambling-related websites, applications and digital platforms. The law’s focus on digital enforcement mirrors recent regulatory efforts by the Bangladesh Telecommunication Regulatory Commission (BTRC), which has blocked hundreds of gambling and betting websites in recent years.

The legislation also places greater emphasis on the financial infrastructure supporting gambling activity. It criminalises the use of fake SIM cards, ghost SIMs, fraudulent Mobile Financial Service accounts and stolen identity information to facilitate gambling operations.

In addition, the transfer, concealment or laundering of gambling proceeds through banks, Mobile Financial Service accounts, digital wallets, hundi networks or cryptocurrency is treated as a predicate offence under Bangladesh’s Money Laundering Prevention Act 2012.

According to Rafi, regulators increasingly view gambling as a broader financial crime issue rather than solely a gaming-related activity. “These developments demonstrate that gambling is no longer limited to individual participation but has evolved into a broader financial crime risk involving illegal fund movement, fraudulent accounts and potential money laundering networks.”

Tougher penalties and broader liability

The toughest penalties are reserved for organised gambling operations and gambling-related money laundering schemes involving fake SIM cards, fraudulent Mobile Financial Service accounts or cryptocurrency transactions. Such offences are punishable by up to 10 years’ imprisonment and fines of up to BDT 50 million (US$406,100). Conventional gambling offences carry penalties of up to two years’ imprisonment and fines of BDT 200,000 ($1,624).

Operating online gambling, betting platforms or digital gambling networks can result in prison sentences of up to seven years and fines of up to BDT 50 million ($406,100).

The legislation also creates offences for gambling promotion, including advertising, sponsorships, affiliate marketing and referral campaigns. Media outlets, influencers, athletes, artists and other individuals involved in promoting gambling may face up to three years’ imprisonment and fines of BDT 5 million ($40,600).

Match-fixing carries penalties of up to seven years’ imprisonment and a BDT 10 million ($81,300) fine, while spot-fixing offences can result in up to five years’ imprisonment and fines of BDT 5 million ($40,600).

New powers for technology-led enforcement

One of the most notable additions is the law’s emphasis on technology-driven enforcement. The Act authorises authorities to use artificial intelligence, transaction-monitoring systems, deep packet inspection technology and data analytics to detect gambling activity. It also allows the creation of a national digital blacklist database, NID-SIM-MFS linking systems, biometric verification mechanisms and facial-recognition-based verification processes.

Authorities are also empowered to freeze and confiscate bank accounts, Mobile Financial Service accounts, digital wallets, cryptocurrency assets, domains, servers, SIM cards, mobile devices and other assets linked to gambling operations. All offences under the Act are classified as cognisable, non-bailable and non-compoundable, while cyber-related offences will be tried in Cyber Tribunals.

Enforcement remains the key challenge

Despite the expanded powers, enforcement remains a challenge given the cross-border nature of many online gambling operations. Rafi said gambling networks often rely on offshore platforms, anonymous digital channels and complex financial flows that can be difficult to investigate using traditional enforcement methods.

“The effectiveness of the Gambling Prevention Act, 2026 will depend not only on legal enforcement but also on strengthening digital investigation capabilities, suspicious transaction monitoring, information-sharing mechanisms, cross-border cooperation, cybersecurity readiness and coordinated regulatory action.”

The road to Bangladesh’s Gambling Prevention Act 2026

The Act builds on a broader enforcement campaign that Bangladesh has pursued over the past two years. Authorities have progressively tightened restrictions on online gambling, betting promotions and gambling-related financial transactions, citing links to money laundering, digital fraud and illicit cross-border fund transfers. In October 2025, the government adopted a formal zero-tolerance policy towards online gambling advertisements and promotions across websites, social media platforms, mobile applications and electronic media, warning that violators could face action under the Cyber Security Act.

The legislative overhaul follows a series of coordinated actions involving the BRTC, Bangladesh Bank, the Criminal Investigation Department (CID), the National Cyber Security Agency (NCSA) and other government bodies. Officials have repeatedly argued that the colonial-era Public Gambling Act 1867 was ill-equipped to address modern gambling networks that operate through digital platforms, mobile payments, cryptocurrency, social media and offshore betting services, creating the impetus for a new standalone legal framework.

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