Inside Bangladesh’s new gambling bill: AI surveillance, blacklists, and big fines

Bangladesh is currently preparing to replace a gambling law dating back to the colonial era with a far more expansive legal framework designed for the internet age. The newly proposed Gambling Prevention Bill, 2026, is slated to repeal the Public Gambling Act of 1867 and introduce a regime targeting not only conventional betting operations but also online platforms, cryptocurrency-based wagering systems, influencer-driven promotion networks, and the digital infrastructure that supports them.

After Home Minister Salahuddin Ahmed placed the bill in Parliament on June 23, it was referred to the parliamentary standing committee on the Ministry of Law, Justice, and Parliamentary Affairs for scrutiny, with instructions to submit its report within five working days. 

The draft reflects growing concern among policymakers that gambling has shifted from physical venues to smartphones, encrypted networks, and cross-border platforms. The proposed law aims to address these modern forms of gambling, which were unimaginable when the current law was enacted more than 150 years ago. Online betting has also become increasingly visible across South Asia.

A much broader definition of gambling

One of the most significant features of the draft law is its broad definition of gambling and related activities.

The draft bill defines gambling broadly, covering both participation and organisation. It includes all forms of betting and wagering involving money or items of value, as well as games such as bingo, roulette, poker, and card games. The legislation seeks to cover not only traditional betting but also digital gambling platforms, sports betting, live betting, exchange betting, casino betting, virtual betting, fantasy betting, and e-sports betting. The bill explicitly recognises online gambling as a separate category and attempts to define the digital systems through which it operates.

The draft also includes definitions for a range of technologies and tools that are frequently associated with online gambling ecosystems. These include cryptocurrencies such as Bitcoin, Ethereum, and USDT, as well as virtual private networks (VPNs), proxy services, mirror sites, ghost SIM cards, mobile financial service accounts, digital wallets, and various forms of digital assets.

The focus shifts from gamblers to entire networks

Unlike older gambling laws that primarily targeted gaming houses or individual gamblers, the proposed legislation takes a network-based approach.

The bill identifies a wide range of actors who could face legal scrutiny for participating and supporting gambling. These include gambling organisers, bookmakers, agents, payment facilitators, technology providers, and those who knowingly assist gambling operations. It also seeks to capture individuals and organisations that provide logistical or digital support for gambling platforms.

A notable feature is the inclusion of marketing and promotional activities. The draft specifically mentions sponsorship arrangements, affiliate marketing programmes, referral campaigns, and promotional efforts carried out through social media. Influencers and other individuals involved in advertising or encouraging participation in gambling activities could fall within the scope of enforcement.

The bill further criminalises the use of fake SIM cards, fraudulent mobile financial service accounts, and false identities in gambling-related activity, including the misuse of biometric or national identity data.

Technology companies could face new responsibilities

The draft legislation goes beyond gambling operators and reaches into the technology sector.

Under Chapter 2, Section 11 of the draft law, authorities will be empowered to take action against individuals who use VPNs, proxy servers, mirror sites, hosting services, domain services, cloud infrastructure, or other technical infrastructure to operate, facilitate, or conceal gambling activities. 

The section also targets efforts to bypass government restrictions by reopening blocked gambling platforms through alternative domains or mirror websites.

For technology companies, this signals a regulatory shift toward greater intermediary responsibility, where platforms and infrastructure providers may be required to assist enforcement against suspected gambling services.

Strong emphasis on financial surveillance

Another major element of the bill is its focus on financial flows. The draft proposes powers to freeze accounts and take action against funds believed to be connected to gambling activities.

Under the draft Gambling Prevention Bill, 2026, courts will be empowered to shut down a wide range of financial channels used in gambling activities. If an account is found to have facilitated gambling transactions, a court may order the closure of bank accounts, mobile financial service accounts, payment gateways, digital wallets, cryptocurrency wallets, and other related financial accounts. 

Surveillance and data-driven enforcement

Perhaps the most technologically ambitious part of the proposed law is its emphasis on data-driven enforcement. The proposal allows authorities to investigate and track transactions linked to gambling networks. 

Under Chapter 4, Section 39, the draft law proposes the creation of a national digital blacklist database aimed at preventing gambling, online betting, and related financial crimes, including money laundering. The database will compile extensive personal and technical identifiers such as NID details, SIM cards, mobile financial service (MFS) accounts, bank accounts, digital wallets, devices, domains, IP addresses, websites, and mobile applications linked to suspected offences.

Under Chapter 4, Section 40, the draft also introduces an NID-linked verification system connecting SIM registrations with financial accounts, allowing authorities to cross-check user identities across telecom and financial platforms. The framework will permit biometric verification tools, including facial recognition and other risk-based systems, to strengthen identity checks. 

Under Chapter 4, Section 43, the government shall be empowered to use a range of advanced technological tools to monitor and combat gambling activities. These include AI-based monitoring systems, deep packet inspection (DPI), risk-scoring systems, transaction monitoring systems, and data analytics platforms. The provision further allows authorities to use AI-driven analysis to identify potentially suspicious transactions, websites, apps, devices, wallets, and accounts linked to gambling operations. 

From a policy perspective, this shows that the state is planning to significantly expand its technological capabilities. The draft itself focuses primarily on enforcement effectiveness rather than outlining detailed safeguards governing the use of surveillance technologies.

Tougher penalties and enforcement structure

The proposed law introduces substantially stronger penalties than those found in the nineteenth-century legislation it seeks to replace.

The bill proposes a tiered system of punishment for gambling-related offences. Individuals found directly or indirectly involved in gambling could face up to two years in prison, a fine of up to BDT 200,000, or both. For online or remote gambling, the penalties increase significantly, with a maximum of five years’ imprisonment, a fine of up to BDT one crore, or both. Participation in online betting carries the harshest punishment, with up to seven years in prison, a fine of up to BDT five crore, or both.

The bill proposes five years’ imprisonment and a fine of up to BDT 400,000 for anyone who manages, rents out, or allows premises to be used for gambling, with courts empowered to seize related property. Those involved with gambling equipment could face up to three years in prison and a BDT 100,000 fine. Bookmakers may face up to seven years’ imprisonment and fines of up to BDT 5 crore. Match-fixing would carry up to seven years in prison and a BDT 1 crore fine, while spot-fixing could attract five years’ imprisonment and fines of up to BDT 50 lakh.

The bill also proposes up to three years’ imprisonment and a BDT 50 lakh fine for gambling-related advertising, sponsorships, affiliate marketing, and referral campaigns. Operating gambling services through VPNs, proxy servers, hosting platforms, or cloud infrastructure could carry up to seven years in prison and a BDT 5 crore fine. Using fake SIMs, fraudulent financial accounts, or biometric manipulation could result in up to seven years’ imprisonment, rising to ten years for organised or money-laundering-related offences. 

Gambling-related money laundering and cryptocurrency-based gambling activities would be treated as predicate offences under the Money Laundering Prevention Act, 2012.

The draft law assigns liability not only to individuals but also to companies, corporate bodies, and digital platforms involved in gambling-related offences. The legislation also penalises anyone who aids, finances, or facilitates gambling offences, while repeat offenders face doubled maximum penalties. Courts are empowered to seize a wide range of assets - including cash, bank accounts, mobile financial service wallets, crypto assets, and infrastructure such as servers and SIM cards, with confiscated property transferred to the state.

Procedurally, cases can only be initiated by authorised officials, and investigations must be conducted by police officers not below sub-inspector rank. The draft also provides for freezing of financial accounts during probes, but such actions and related enforcement steps would require prior court approval, including search warrants. Online gambling offences will be tried by cyber tribunals, while other cases fall under criminal courts. The law further classifies all offences as cognizable, non-bailable, and non-compoundable, and allows mobile courts to impose penalties where permitted under law.

An inter-agency approach

The draft law assigns a wide-ranging, multi-agency framework for preventing gambling. The Ministry of Home Affairs will be responsible for enforcement, coordination, supervision, and policy oversight, while the ICT and Posts and Telecommunications Ministry will be responsible for technical control, supervision of digital infrastructure, and regulation of online platforms. The telecom regulator (BTRC) will block illegal websites, apps, domains, IP addresses, and communication channels.

Financial monitoring will be handled by Bangladesh Bank and the Financial Intelligence Unit to track suspicious transactions and money laundering linked to gambling. Other agencies, including the Election Commission, intelligence bodies, CID, and the National Cyber Security Agency, will support identity verification, surveillance, investigations, and cyber threat analysis.

The framework also aims to involve the Religious Affairs, Information, Youth and Sports, and Education Ministries in awareness campaigns, anti-gambling messaging, and prevention efforts across society, particularly targeting media, sports integrity, and educational institutions.

The bill further contemplates international cooperation, including engagement with foreign jurisdictions and international organisations, where necessary.

Potential concerns 

As the draft moves through the legislative process, several policy questions are likely to attract attention.

The proposed use of identity-linking systems, AI-based monitoring systems, deep packet inspection (DPI), and other network-level detection tools may raise questions about oversight, proportionality, and safeguards, particularly as the bill grants broad enforcement powers without clearly defining their limits or accountability mechanisms. The draft does not establish an independent regulatory or oversight commission, instead relying on an inter-agency coordination structure led by enforcement and intelligence bodies, with no clearly defined external watchdog, grievance mechanism, or transparency requirements such as DPI reporting. As a result, there would be little separation between those enforcing the law and those overseeing its use, raising concerns about independence and accountability.

The other concern is implementation and enforcement. While the bill grants authorities broad powers, regulating offshore digital gambling networks remains challenging, as operators can quickly change domains, payment channels, and technical infrastructure. The bill could also increase pressure on internet service providers, payment platforms, and technology companies to participate in enforcement efforts. 

The draft bill signals a widening of Bangladesh’s regulatory approach to the digital sphere, where financial systems, telecommunications, identity infrastructure, and online platforms are increasingly treated as part of a single enforcement ecosystem.