We need a clear legal framework to rein in online betting
Given the ills of gambling and the outdated nature of existing laws, new legislation should be enacted to provide a clearer legal framework for online gambling in Bangladesh
The gambling industry has recently experienced a significant transformation due to the explosive growth of online betting sites. These platforms have revolutionised the way people engage with sports, casino games, and various forms of gambling. One key factor driving their growth is the extensive range of promotions they offer to attract and retain customers.
However, while these promotions may appear enticing, concerns have arisen regarding their potential risks and their impact on vulnerable individuals. The popularity of online betting sites can be attributed to their convenience and accessibility.
With just a few clicks, users can place bets on their favourite sports teams, play virtual casino games, or try their luck at poker tables. In addition to this user-friendly experience, these platforms employ various promotional strategies to entice potential customers.
In Bangladesh, online betting sites operate in a legal grey area. The country's current laws do not explicitly address online gambling or sports betting. Consequently, there are no licensed or regulated online betting sites based in Bangladesh.
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Nevertheless, despite the absence of local operators, some international online betting sites do accept players from Bangladesh. These offshore platforms cater to Bangladeshi players and offer a wide range of sports betting options, including popular sports such as cricket, football (soccer), tennis and more.
One of the most common promotional offers is the "welcome bonus." Upon signing up, new users are often greeted with enticing offers, such as matched deposits, free bets, or bonus credits. While these promotions can provide a boost to players' initial bankrolls, they often come with strict terms and conditions that may require multiple wagers before any winnings can be withdrawn.
Additionally, online betting sites frequently run ongoing promotions for existing customers to foster loyalty and maintain engagement. These promotions may include enhanced odds, cashback offers, or special event-based bonuses. While such incentives can enhance the overall betting experience, they may also lead to impulsive gambling behaviours as users chase promotional rewards.
During the outbreak of Covid-19, the popularity of online betting markets soared to new heights as people were forced to live isolated lives with nothing but time and the internet for companionship.
This, in turn, sparked concerns about gambling addiction and its consequences, including criminal activity. The United Kingdom, with a market worth approximately £12.25 billion, stands as the largest online gambling market globally, narrowly surpassing the United States, which boasts an $11 billion market. Australia ranks third and spends roughly half as much on video games as the UK.
Notably, none of the top 10 nations in this ranking are from Asia, South America, or Africa, despite certain Asian nations having higher GDP per capita and economic outputs than some of the mentioned European nations.
It is important to note that engaging in online gambling, including using offshore betting sites, carries legal risks. The legal status of online gambling in Bangladesh remains unclear, and the promotion of these sites can occur through various channels, both online and offline.
Betting sites may utilise online advertising platforms, including social media, or collaborate with affiliate marketers who promote their services on websites, blogs, or social media channels. These affiliates earn a commission for referring new customers to the betting sites. At times, betting sites also engage in sponsorship agreements with sports teams, leagues, or events.
To the best of my knowledge, there is no specific legal framework governing the promotion of betting sites in Bangladesh. According to the Constitution of the People's Republic of Bangladesh, Article 18(2) clearly states that the state shall adopt effective measures to prevent all forms of gambling. However, it's worth noting that fundamental principles of state policy are typically not judicially enforceable.
The Public Gambling Act of 1867 primarily focuses on physical gambling establishments and does not specifically address online gambling or the advertising of betting sites. This law prohibits operating or being involved in a "common gaming house" or a physical establishment for gambling activities.
While there are scattered provisions in Bangladeshi laws mentioning gambling, such as Section 294A of the Penal Code, 1860, and Section 92 of the Dhaka Metropolitan Police (Amendment) Ordinance, 1976, these were enacted long before the development of online gambling. Consequently, their applicability to online platforms is open to interpretation.
In Bangladesh, the legal status of betting sites and online gambling is complex and somewhat ambiguous. The country's laws do not specifically address online gambling or sports betting, making it difficult to establish a clear legal framework for these activities.
It's crucial to note that while there may be a lack of strict enforcement against individual bettors, the legal ambiguity surrounding online gambling in Bangladesh means that engaging in such activities carries inherent risks. Furthermore, it is evident that these activities have visible and far-reaching consequences for the country's morality.
As a result, it is recommended that, given the negative impacts of gambling and the outdated nature of existing laws, new legislation be enacted to repeal existing provisions and provide a clearer legal framework for online gambling in Bangladesh.
Sidratul Muntaha is a final year LLB student at the Department of North South University.
Disclaimer: The views and opinions expressed in this article are those of the author and do not necessarily reflect the opinions and views of The Business Standard.
