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Bangladesh’s cabinet granted in-principle approval to the draft Gambling Prevention Act, 2026 on June 18, marking the most significant overhaul of the country’s gambling legislation in 159 years.
The approval came at the cabinet’s 10th meeting, held at the Jatiya Sangsad Bhaban and chaired by Prime Minister Tarique Rahman, according to state news agency Bangladesh Sangbad Sangstha (BSS). The Ministry of Home Affairs tabled the legislation.
Replacing a Colonial-Era Framework
The bill would repeal the Public Gambling Act of 1867 — a statute authorities say is structurally inadequate for the digital era. The existing law prohibits most traditional gambling in Bangladesh, with limited exceptions for certain horse racing bets and state-approved lotteries, but contains no provisions for online or technology-driven betting.
The new framework introduces formal legal definitions for a range of activities and entities that the 1867 law does not cover: online gambling, remote gambling, digital gambling platforms, digital wallets, totalisators, bookmakers, match-fixing, and spot-fixing. The draft also expands the scope of punishable conduct beyond gambling itself to include organising, facilitating, promoting, or providing technical support for illegal betting systems.
Penalties under the proposed act would range from fines to imprisonment, or both, with detailed sentencing structures to be finalised during the legislative review process. The draft will now be examined by the Legislative and Parliamentary Affairs Division before final submission for approval. No timeline has been set for that process.
Enforcement Action Already Underway
The legislative push comes against a backdrop of escalating enforcement action. Bangladesh Bank has ordered all 13 mobile financial service (MFS) providers to block gambling-linked transactions and deploy AI-enhanced monitoring systems capable of detecting suspicious payment patterns in real time. The Bangladesh Telecommunication Regulatory Commission (BTRC) has blocked gambling websites across the country, though operators and regulators acknowledge that VPN use allows continued access.
The Bangladesh Financial Intelligence Unit (BFIU) has deactivated tens of thousands of MFS accounts linked to illegal gambling and hundi activity, with the count reaching over 58,000 as of late 2025, up from 21,725 reported in September 2023. A senior Bangladesh Bank official, speaking anonymously, estimated that approximately Tk5,000 crore ($417m) may be leaving the country annually through online gambling.
Home Affairs Minister Salahuddin Ahmed had flagged the government’s intention to replace the outdated statute in May, with the cabinet approval following within weeks. Rahman’s centre-right Bangladesh Nationalist Party took office in February 2026 following a parliamentary election victory.
Digital Platforms at the Centre of Concern
Officials framed the legislation as a response to the expansion of betting through smartphones, social media, messaging applications, and cross-border platforms that existing enforcement tools struggle to reach. The cabinet summary stated the law was designed to “maintain public order, reduce criminal tendencies, prevent socio-economic and psychological harm, and preserve the country’s overall moral and economic balance,” according to BSS.
Cybersecurity concerns sit alongside financial crime considerations. The draft targets syndicates involved in large-scale illegal betting networks and includes specific criminal provisions for match-fixing and spot-fixing, reflecting the government’s focus on sports integrity alongside consumer protection.
MFS operators have raised practical concerns about enforcement. Representatives from bKash and Nagad have noted that the purpose of person-to-person transfers is difficult to determine, and that layered transactions through agent networks complicate detection. The central bank has responded by requiring task forces and real-time monitoring infrastructure across all 13 providers.
The bill now enters the parliamentary review process. With no timeline confirmed, the path from in-principle cabinet approval to enacted legislation remains open-ended — but the regulatory intent is clear, and enforcement infrastructure is being built in parallel.
For related coverage on prediction market regulation in Asia-Pacific, see Australia’s ACMA classification of prediction markets as gambling and New Zealand’s declaration that prediction markets are illegal.
Source: InterGame Online / Bangladesh Sangbad Sangstha (BSS)
