Bangladesh Gambling Regulation

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Gambling Regulation Bangladesh, officially known as the People’s Republic of Bangladesh, is a country in South Asia and is among the most populous nations in the world. Since the country was under British rule for a long time, the laws regulating gambling were established in 1867, when Bangladesh was still part of the British Empire.

If you want a simple answer to whether gambling is legal in Bangladesh, unfortunately, the answer is no. Although the existing laws are outdated, they still apply to every form of gambling and deem all of them illegal. Lotteries and horse racing wagers are excluded from these restrictions because they fall under the category of “games of skill,” along with several other games.

The main issue with the laws that regulate gambling is that they are outdated, providing no clear definition of gambling or online gambling. This makes the regulation of such activities extremely vague, and individuals in Bangladesh often look for loopholes that allow them to enjoy their favorite forms of gambling in one way or another.

History of Gambling in Bangladesh

Licensing Requirements As Bangladesh was under British rule, it is no surprise that many of the country’s laws have been heavily influenced by British culture and views. Gambling is no exception, with the activity still regulated by a law enacted in 1867. Moreover, because 90% of the population in Bangladesh is Muslim, it is understandable that gambling has not been legalized, as it is frowned upon by Sharia law.

Not only is the history of gambling in Bangladesh almost nonexistent, but it is also unlikely that the current laws will change to allow less conservative regulation of the sector. While all forms of gambling are illegal in Bangladesh, bets on horse races are the sole exception. To place wagers on horse races, however, bettors must place their bets on the day the race is held. In addition, wagers must be placed with authorized bookmakers in the dedicated locations that accept bets on horse races.

Although most forms of gambling are illegal in Bangladesh, the outdated law provides no clear definition of online gambling or the penalties one may face for participating in it.

Gambling Regulations in Bangladesh

Gambling As already mentioned, the law regulating gambling in Bangladesh is outdated. The Public Gambling Act, which governs gambling in the country, was enacted in 1867 when Bangladesh was under British rule. The Act was initially an Indian law that was later adopted by Pakistan as well. After amendments to sections 3 and 4, and the repeal of section 2, the Public Gambling Act was also adopted in Bangladesh.

In addition to the Public Gambling Act, the Constitution of Bangladesh also provides a few guidelines for regulating gambling. According to the Constitution, the state is required to implement “measures to prevent prostitution and gambling.” Despite that, cafes, restaurants, and pool clubs have become regular gathering spots for gamblers, and local authorities often raid these locations.

The Public Gambling Act of 1867

1Dicting the legal status and the penalties

The Public Gambling Act of 1867 is the primary law governing gambling in Bangladesh and outlines the penalties individuals may face for violating it. Under Section 4 of the Act, anyone found participating in gambling activities may be fined up to BDT100 or imprisoned for up to one month. The Act also states that individuals who own or are in charge of a common gaming house will be penalized, facing a fine of up to BDT200 or imprisonment for up to three months.

According to the Public Gambling Act, all forms of gambling are illegal, with betting on horse racing and lotteries being the only exceptions. Over the years, several amendments have been made to this legislation to permit certain lotteries and to categorize prize bonds separately from ‘gambling’. These changes also introduced a 21% tax that applies to horse-racing totes as well as bookmakers’ operations.

2Legality of Lottery in Bangladesh

Although the Public Gambling Act of 1867 makes all forms of gambling illegal in Bangladesh, several amendments have decriminalized lotteries. Lottery games are considered wagering contracts because they involve an agreement to award money or something of monetary value if a specified event occurs.

Under Section 30 of the Contract Act 1872, “agreements by way of wager are void; and no suit shall be brought for recovering anything alleged to be won on any wager, or entrusted to any person to abide the result of any game or other uncertain event on which wager is made.”

However, the section provides a few exceptions. Betting on horse races that offer a prize of BDT500 or more does not fall under the category of void wagering agreements.

3Wagering agreements

Lottery games fall under the definition of “wagering agreements” because the seller of a lottery ticket agrees to pay the buyer a specific amount if a certain event occurs in the future. For lotteries in Bangladesh, that event is the raffle draw. Because the draw determines the winning ticket, the holder of the winning ticket must be paid the promised amount.

Under the law declaring wagering agreements void, including lotteries, any sum due under such agreements is also void. Therefore, anyone deceived while participating in these lotteries cannot seek legal remedies because wagering agreements are void from the outset.

State-issued lotteries, however, are treated differently. According to Section 294A of the Penal Code 1860, lottery games issued and authorized by the Government of Bangladesh are legal. Under the same section, anyone who conducts lottery activities at any office or place without local government authorization faces a fine, up to six months’ imprisonment, or both.

The section also penalizes individuals who offer to pay money, deliver goods, or take or refrain from action for the benefit of anyone involved in an event or contingency related to a ticket draw, lot, figure, or number in a lottery game. The punishment in such cases is a fine of up to BDT1,000.

Online Gambling in Bangladesh

Gambling Because the Public Gambling Act was enacted when Bangladesh was under British rule, it contains no definitions of online gambling or how it should be regulated. The absence of such clauses gives many Bangladeshis the opportunity to participate in different forms of gambling on foreign websites.

The lack of a local regulatory authority is another reason why online gambling is more popular in the country. While no online casinos are licensed in Bangladesh, many players can join foreign websites where they can wager on various casino games or bet on major sporting events.

Although online gambling is not specifically covered by the current laws, placing wagers online is still illegal for Bangladeshi players. What is more, there is no way for operators to apply for a license that would allow them to offer any form of online gambling to people based in Bangladesh. Any individual caught building a gambling venue will be prosecuted and can face severe penalties. That said, because the laws are vague when it comes to online gambling, various gaming sites still accept Bangladeshi players.

Closing Thoughts

Conclusion It is clear that the law regulating gambling in Bangladesh is outdated and severely lacking when it comes to online gambling. While most forms of gambling remain illegal in the country, legal loopholes allow Bangladeshis to join various foreign websites where they can wager on different casino games.

Not only is the outdated Public Gambling Act incapable of regulating online gambling, but any applicable punishments are also disproportionate to the income one can earn from offshore gaming. With some players having the chance to win millions in prize money, a fine of BDT500 is not a significant deterrent for those willing to take the risk of gambling online.

Because offshore gaming sites that welcome Bangladeshis are based in foreign countries, local laws are not applicable, and there are still no cases of players from Bangladesh being prosecuted for gambling online. With no relevant laws, this remains an unregulated industry, and unfortunately, there are no signs that Bangladesh will amend its current laws.

A complete ban on gambling will certainly not solve the issue, especially with the increasing popularity of online gambling in Bangladesh. Instead, the country needs to update its laws and properly implement gambling regulations. That said, there have been no indications that Bangladesh will amend its current gambling laws anytime soon.