Asia's gambling crackdown exposes regulatory divide: Experts
Asian countries including Bangladesh, Nepal and India have renewed debate over whether the region is entering a new era of gambling prohibition. However, industry experts told SiGMA News that the region is not moving in a single direction. Instead, Asia is becoming increasingly divided between jurisdictions favouring stricter prohibition and those pursuing regulated gaming frameworks.
The contrasting approaches reflect the diversity of the region. John Calderon, Business Development and Strategic Consultant Asia, told SiGMA News that the region should not be viewed as a single regulatory market. “I don’t believe there’s a single trend across Asia because the region is incredibly diverse.”
“Some countries have long prohibited gambling based on cultural or religious values, while others recognise gaming as a legitimate industry when it operates within a strong regulatory framework.”
Jaydeep Chakravartty, an iGaming consultant, told SiGMA News that regulators are drawing clearer distinctions between licensed gaming activities and illegal betting operations. “Governments across Asia are increasingly distinguishing between regulated gaming, skill-based gaming, entertainment products, and illegal betting operations,” he said.
Bangladesh and Nepal tighten gambling enforcement
The Gambling Prevention Act, 2026 is the primary legislation governing gambling in Bangladesh. Enacted on 1 July 2026, this comprehensive law replaced the 159-year-old colonial-era Public Gambling Act of 1867. The law brings online gambling, sports betting, cryptocurrency-linked transactions and gambling-related financial offences under the new legal framework.
In March, Nepal implemented a nationwide ban on all betting applications and gambling websites. The move came amid growing interest in gambling activity; data from market intelligence platform Blask showed gambling interest in Nepal reaching 1.99 million in January 2026 before the ban took effect. Following the ban, the Blask Index stood at 2.06 million in March 2026. The figure then declined to 1.62 million in April and 1.44 million in May before rising to 1.61 million in June.
In India, the Promotion and Regulation of Online Gaming Act, 2025 (PROGA), which came into effect on 1 May, prohibits online money games while establishing a framework for esports and online social gaming. India has also stepped up enforcement against offshore betting operators while policymakers continue to debate the future direction of online gaming regulation.
Financial crime concerns are shaping policy
Concerns about financial crime, fraud and cross-border transactions have become a common theme in recent regulatory actions. Calderon said governments increasingly view illegal gambling as part of a wider network of criminal activity.
“Governments are increasingly concerned about illegal gambling being linked to money laundering, cybercrime, scam operations, human trafficking, and unregulated cross-border financial transactions.”
The issue extends beyond South Asia. A recent United Nations Office on Drugs and Crime (UNODC) report estimated that scam operations across the Asia-Pacific region generated between $88.3 billion and $114.1 billion in illicit proceeds during 2025. The report said criminal groups are making greater use of cryptocurrency, online platforms and money laundering networks while relocating operations in response to enforcement pressure.
Chakravartty said regulators are also responding to the rapid growth of offshore gambling operators and digital payment channels. “Governments are increasingly concerned about several interconnected issues: consumer protection, financial crime, tax leakage, money laundering, fraud, and the social impact of uncontrolled gambling.”
The growing use of digital wallets, mobile payments and cryptocurrency has added to the challenge, particularly where operators and payment providers can serve customers across multiple jurisdictions.
Regulated markets continue to evolve
As South Asian governments focused on enforcement, other jurisdictions continue to develop regulated market models. Singapore maintains a tightly controlled gambling framework built around licensing, enforcement and player protection measures. The Philippines continues to regulate casinos, sports betting and electronic gaming through the Philippine Amusement and Gaming Corporation’s (PAGCOR) licensing system and Responsible Gaming Code of Practice.
Calderon said these markets illustrate a different regulatory approach. “These markets show that regulation does not have to mean either complete liberalisation or complete prohibition.”
Chakravartty said more governments are exploring frameworks that combine licensing, financial oversight, responsible gaming measures and stronger action against unlicensed operators. He believes the most successful models are likely to be those “that recognise market demand while imposing clear operational and consumer protection standards.”
Regulatory clarity influences investment
Different regulatory approaches are also affecting investment decisions. Calderon said operators increasingly favour jurisdictions with clear licensing requirements and predictable regulatory environments. “Compliance is no longer viewed as just a legal requirement but as a business advantage.”
Chakravartty said regulatory certainty is becoming an important factor for companies assessing long-term opportunities. “We are likely to see major operators concentrate investment in jurisdictions that provide clear licensing pathways while reducing exposure to markets where policy direction remains uncertain or fragmented.”
For investors, regulatory stability is becoming as important as market size as governments continue to refine their policies on gambling and online gaming.
The challenge of offshore migration
One of the key questions facing regulators is whether tougher enforcement reduces gambling activity or pushes consumers towards offshore alternatives. Calderon said users may seek out unlicensed options when legal and regulated products are unavailable. “If people cannot access legal and well-regulated gaming options where they are permitted, many will look for alternatives through offshore websites, cryptocurrency platforms, or other unlicensed channels.”
Research by public policy think tank, CUTS International, found that offshore betting activity increased in India following restrictions on online real-money gaming. A separate survey in Tamil Nadu found that 83 per cent of respondents either continued using or started using offshore betting platforms after state-level restrictions were introduced.
Chakravartty said similar patterns have been observed in other markets. He said, “History has repeatedly shown that demand for betting and gaming does not disappear simply because access becomes restricted.”
As governments across Asia reassess their gambling laws, there is little sign of a single regional trend emerging. Instead, countries are taking different paths, with some favouring stricter controls and others continuing to rely on regulation, licensing and enforcement to manage the sector.
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