Online Gambling and Money Transaction: A Question of Legality in the Context of Bangladesh

Law & Our Rights

Online gambling has become a major issue, spanning from metropolitan areas to distant rural locales, with multiple syndicates comprised of local and foreign individuals profiting off crores of taka from the country.
If any person or entity engages in accepting, placing, receiving, or otherwise knowingly transmitting a bet or wager by any means involving the internet, including online businesses offering sports betting, online poker, or other games of chance, it will be considered as Online Gambling.
It is unimaginable to comprehend how gambling steadily poisons society. In a mere second, gambling can distinguish between several hundred thousand wins and losses.
The rules surrounding online gambling laws vary from country to country and often remain unclear. This is undoubtedly the case in Bangladesh, where there has never been a law addressing only online gambling.

Bangladesh, the world’s third most populous Islamic-majority country, prohibits gambling except for horse racing. However, it is not unusual for people to bet on sports such as cricket, carrom, kabaddi, and others.
The Bangladesh Gambling Act has undergone some amendments over the decades, but all online gambling businesses remain illegal in Bangladesh.

According to the Constitution of Bangladesh, Article 18(2) clearly stipulates that the state will adopt effective measures to prevent all forms of gambling.
While fundamental principles of state policy are not judicially enforceable, this clause directs the State’s legislative initiatives and discourages gambling within the country.
The primary law governing gambling in Bangladesh is the Public Gambling Act of 1867, a relic from the British regime, which is the primary reason for the lax penalties associated with gambling. During that period, it was unimaginable to include provisions regarding online gambling.

There are also scattered provisions in Bangladeshi laws where gambling is mentioned, such as Section 294A of the Penal Code, 1860, and Section 92 of the Dhaka Metropolitan Police (Amendment) Ordinance, 1976. However, these provisions do not specifically address online gambling.
Consequently, it has been established that online gambling status may remain uncertain under Bangladeshi law, providing little assistance to those seeking a definitive answer.

Currently, there are no local mobile or online-based casinos established in Bangladesh. However, gamblers from Bangladesh can still access mobile casino games provided by foreign websites.
The most popular mobile casino games for Bangladeshi gamblers include mobile slots, mobile poker, mobile roulette, and mobile blackjack.

To participate in real cash gambling, Bangladeshi gamers must fund their accounts with real money, which could include fiat cash or cryptocurrency.
The most widely used currency in Bangladesh is fiat currency, including various Southeast Asian currencies and even worldwide currencies.
Making payments poses a challenge for many online gamblers in Bangladesh, as deposits using debit or credit cards are not always permitted.
Nevertheless, a straightforward solution is to utilize an e-wallet. Services like Neteller and Skrill are popular alternatives that act as intermediaries between debit/credit cards and gambling websites.
Notably, one of the online betting sites, 1xbet, promoted its service through a television advertisement during the cricket match between Bangladesh and the West Indies last year.

While depositing with Bitcoin might seem appealing, it is crucial to remember that Bitcoin is banned in Bangladesh, alongside all other cryptocurrencies.
On July 21, 2021, Bangladesh Bank reiterated that it does not permit the ownership or trade of any type of virtual coin or cryptocurrency in the country.
This statement followed uncertainty after a letter issued to the police’s criminal investigation department claimed that cryptocurrency trading could not be deemed a crime, despite virtual coins being illegal in Bangladesh.
In a public notice, Bangladesh Bank stated that transactions involving any virtual currency are prohibited under the Foreign Exchange Regulation Act of 1947, the Money Laundering Prevention Act of 2012, and the Anti-Terrorism Act of 2009.

As new channels for online gambling have emerged in recent years, laws need to be updated and adequately enforced to ensure that the constitutional duty of preventing gambling is upheld.
Considering the pros and cons of gambling, it is evident that it has visible and far-reaching consequences on the country’s morality, economy, society, politics, law, and order.
The state should implement comprehensive systems to strictly address online gambling-related issues.
It is recommended that due to the negative impacts of gambling and the outdated nature of existing laws, new legislation should be enacted to repeal the current provisions surrounding gambling.

The writer is a student of law, University of Asia Pacific.

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