Mazharul Islam (pseudonym) never imagined he would fall victim to a gambling addiction. Now, he desperately seeks an escape, grappling with the consequences. What began innocently as online gaming with university friends has spiraled into a debt-ridden existence, wreaking havoc on both his academic pursuits and personal life.
Mazharul’s descent into online gambling started innocuously enough. An alluring advertisement on social media caught his attention, and he soon found himself opening multiple accounts. The promise of “free bets” lured him further into the world of virtual sports betting, an arena he knew little about. Now, financial catastrophe looms just a few clicks away, and the crisis is quietly unfolding.
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“I can’t just get rid of my phone,” Mazharul confided to PressXpress. The convenience of accessing gambling platforms from the comfort of his bed has made quitting nearly impossible. The allure of 24/7 availability keeps him hooked, even as the consequences mount.
Online gambling isn’t confined to urban centers; it spans across metro areas and distant rural regions. Syndicates, comprising both local and foreign individuals, siphon off crores of taka from the country. Anyone involved in accepting, placing, or transmitting bets via the internet falls under the umbrella of ‘Online Gambling’. The insidious impact of gambling on society is hard to fathom, with fortunes won or lost in mere seconds.
The rise of online gambling coincided with the ease of wagering from home. The virtual casino offers an array of choices, from traditional poker and blackjack to cutting-edge slot machines and sports betting. Random Number Generators (RNGs) and live dealer experiences rival brick-and-mortar establishments. As Bangladesh strives for progress, it must confront the shadow cast by online gambling—a crisis that threatens lives, livelihoods, and the nation’s economic stability.
GAMBLING SITES’ OPERATION EXPLAINED
The process of signing up for gambling sites and apps is deceptively simple, requiring only an email address, mobile phone number, and a password. However, this seemingly innocuous step conceals a sinister trap, as each new account comes with an attached virtual wallet. To fund this wallet, users must convert their money into gambling currency through mobile financial service (MFS) outlets. According to BTRC, gambling operators appointed multiple MFS agents in different districts to facilitate such illegal payments. Cricket betting, in particular, draws a substantial following during international matches, as fans succumb to the allure of wagering on their favorite teams and players.
The sites capitalize on this frenzy, offering a dizzying array of betting options and enticing odds. While the promise of lucrative rewards may seem enticing, the withdrawal process is deliberately designed to keep users ensnared. Strict limits on withdrawal attempts and amounts act as subtle coercion, instigating users to bet more and more in a futile attempt to recoup their losses. In this way, the gambling industry weaves an intricate web, luring unsuspecting individuals with the prospect of easy money, only to entrap them in a cycle of addiction and financial ruin.
![The Circle How Online Gamblers Syphoning Off Money From Bangladesh](https://pressxpress.org/wp-content/uploads/2024/07/image-23.png)
CLICKBAIT ADVERTISEMENT
Online gambling sites employ various tactics to lure people, especially the youth, into their platforms. Numerous eye-catching advertisements promising shortcuts to becoming a millionaire through lavish prizes like cash, homes, cars, and smartphones can be found on social media. These ads often feature celebrities to boost their outreach. There are hundreds of Facebook pages and other platforms hosting online gambling, operated mostly by people abroad. Common tactics include offering enticing “welcome bonuses” like matched deposits, free bets, or bonus credits to new users upon signing up. However, these come with stringent terms requiring multiple wagers before winnings can be withdrawn. To foster loyalty, ongoing promotions like enhanced odds, cashback offers, or event-based bonuses are provided to existing customers. While enhancing the experience, such incentives can lead to impulsive gambling behaviors as users chase rewards. Advertisements proclaiming “Play and earn daily,” “Best online casino,” and “Up to lucrative bonuses for new players” proliferate on social media, sometimes targeting specific age groups and regions. The tactics seem effective, as an increasing number of targeted audiences, especially juveniles and youth in rural areas, stumble upon these gambling sites, lured by the promises of easy wealth.
MONEY LAUNDERING
Velki is an online gambling site where gamblers have to bet a minimum of Tk 100 per game. With over 100 games hosted, transactions worth around Tk 600 crore usually take place on Velki every day. Considering the numerous gambling sites operating, the total amount of money involved could be in millions of taka. Recent arrests by law enforcement agencies have revealed the massive scale of online gambling transactions.
The Rapid Action Battalion arrested seven gamblers and found over Tk 200 crore was siphoned off through the game ‘Teen Patti Gold’ alone. In December 2022, CID arrested three agents of the site Betwinner, who laundered several crores of taka through unauthorized mobile banking transactions.
Bangladesh Bank has warned that tackling these transactions is becoming increasingly difficult as both personal and merchant accounts of mobile financial services (MFS) are being used.
Investigators cite lapses in supervision by MFS companies and easy access to gambling websites/apps as factors worsening the situation. Officials estimate thousands of taka have been laundered abroad through online betting, harming the economy.
![At velki site alone](https://pressxpress.org/wp-content/uploads/2024/07/image-24.png)
The process involves gamblers recharging MFS accounts through agents, who deposit the money regardless of wins or losses. Agents then convert the money to cryptocurrencies on platforms like Binance and launder it abroad, primarily to countries like Russia, China, Vietnam, and India. While local agents and MFS firms take commissions, the bulk of the money is siphoned off to overseas gambling operators like Betwinner, controlled by aliases like ‘Super Admin’ or ‘Master Admin’ from Russia. Despite repeated warnings from Bangladesh Bank and BTRC blocking numerous gambling websites, apps, and pages, the issue persists, highlighting the need for stronger measures to curb illegal online gambling activities.
GAMBLING PUSHING UP CRIMES
Experts and law enforcement officials warn that gamblers can develop a false sense of luck after initially winning a few times, leading them into a trap of addiction even after losing money on subsequent bets. However, becoming addicted to gambling can have disastrous consequences, potentially resulting in the loss of everything. In their desperation to fund their gambling habits, many individuals have resorted to criminal activities like mugging, robbery, and even murder. These crimes not only harm others but also perpetuate a vicious cycle of addiction and loss. Tragically, some have taken their own lives due to the overwhelming despair caused by gambling losses. On March 8, 2024, a man named Monir Hossain committed suicide at his home in Hazaribagh after repeatedly losing money and ultimately losing everything he had. Another disturbing incident occurred on February 24, when police arrested a 20-year-old youth for killing a bKash agent in Rupsa Bazar, Rajbari. The arrestee confessed that he and the agent were involved in online gambling, and he robbed and killed the agent to pay off his debt. Such incidents have become increasingly frequent across the country, as gambling addicts, much like drug addicts, resort to violence, mugging, robbery, and even murder to fund their betting habits, highlighting the severe consequences of this addiction.
SOCIAL IMPACT
Online gambling addiction can lead to severe consequences, including family disruption due to financial losses, emotional distress, and neglect of responsibilities, causing strain and broken relationships. It can also result in financial hardship, mental health issues like depression and anxiety, engagement in illegal activities to fund the addiction, erosion of social fabric through isolation and neglect of responsibilities, and increased risk of youth delinquency and gambling addiction among young people exposed to online platforms. According to Recent survey, it was estimated that around 26% of the world’s population have gambled at some point in their lives and there are over 176 million active global online gamblers and this figure could grow to 210 million by 2025. Two to 7% of youths develop a gambling disorder, compared with about 1% of adults, and many gambling disorders begin in adolescence. The extent of gambling in Bangladesh could be comprehended from the book ‘Dynamics of Poverty in Rural Bangladesh’– gambling was identified as a cause of violence against women. In rural areas, wives were reportedly beaten by their husbands for trying to prevent them from gambling, who gambled money earned from cultivation or even the money their wives received as micro-credit. It was revealed in the book that in the case of 11.2% of all households, major reasons for downward mobility between 2004-2009 was “distress sell of land for gambling.” A study by the Sociology department of Dhaka University, explored the consequences of online gambling among university students. 45 percent respondents said that gabling disrupted their study routines, 30 percent said it affect interpersonal relationship, 25 percent report anxiety or depression for gambling, and alarmingly, 80 percent of them suffered from financial strain due to gambling affection.
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WHAT LAW SAYS?
Bangladesh prohibits gambling, except for horse racing. However, betting on sports like cricket, carrom, and kabaddi is not uncommon among the population. While the Bangladesh Gambling Act has undergone amendments over the decades, all online gambling businesses remain illegal in the country. Article 18(2) of the Constitution of Bangladesh mandates the state to adopt effective measures against gambling, reflecting the disapproval of such activities based on moral values. Although this provision is not legally enforceable, it guides legislative actions concerning gambling, not gaming. The gambling laws have their origins in the British era.
The primary legislation is the Public Gambling Act of 1867, with amendments allowing certain government lotteries, imposing taxes on horse racing tote/bookmakers, and prescribing lenient penalties of a maximum one-month imprisonment or fines as low as Tk100. The Act targets the ownership or operation of common gaming houses and participation in gambling activities involving cards, dice, money, or other items. Additional ordinances dealing with gambling in public places include the Dhaka Metropolitan Police (Amendment) Ordinance, 1976, the Chittagong Metropolitan Police Ordinance, 1978, and the Gazipur and Rangpur Metropolitan Police Act, 2018.
One of the critical challenges in regulating online gambling is its ability to transcend borders, enabling criminal groups to smuggle large amounts of money to various locations and jurisdictions. Law enforcement has resorted to specific provisions of the Digital Security Act (DSA), 2018, (which is upgraded now), which aims to regulate digital activities, deter fraudulent practices, and provide legal consequences for offenses committed in the ‘digital domain’ against the perpetrators of illegal online gambling, gaming, or betting.
PressXpress analyzed nearly a dozen online gambling cases, where police accused suspects under Sections 23 (digital or electronic fraud), 24 (identity fraud or personation), 26 (unauthorized collection, use, etc., of identity information), 30 (e-transaction without legal authority), and 35 (abetment of committing an offense) of the DSA.
Bangladesh Bank has also stated that transactions using any virtual currency are prohibited according to the Foreign Exchange Regulation Act of 1947, the Money Laundering Prevention Act of 2012, and the AntiTerrorism Act of 2009.
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INEFFECTIVE BLOCKING MEASURES
The Bangladesh Telecommunication Regulatory Commission (BTRC) has taken steps to combat illegal online gambling by blocking access to hundreds of betting websites. However, these measures have proven largely ineffective due to the dynamic and ever-changing nature of the internet. As soon as one website is blocked, multiple new ones emerge, often hosted in foreign jurisdictions beyond the reach of Bangladeshi laws. This virtual game of whack-amole has rendered the BTRC’s blocking efforts futile, as savvy operators easily circumvent the restrictions by constantly shifting to new domains and web addresses.
Moreover, the widespread availability of virtual private networks (VPNs) and proxy servers provides users with a simple workaround to bypass website blocks. These tools encrypt and reroute internet traffic, effectively masking the user’s location and allowing access to restricted websites. Even when a gambling site is successfully blocked within Bangladesh, users can still access it by connecting through a VPN or proxy server located abroad. While blocking measures may temporarily disrupt access to specific websites, they fail to address the root cause, as users can easily find alternative means to engage in illegal online gambling. To truly curb this issue, Bangladesh needs a multifaceted approach beyond mere website blocking. This could involve strengthening international cooperation, implementing robust cybersecurity measures, raising public awareness about risks and legal consequences, and addressing societal and cultural factors contributing to the demand for such activities.
Mere website blocking has proven insufficient, as the dynamic nature of the internet and the availability of circumvention tools render these efforts futile. A comprehensive strategy targeting the root causes, strengthening international cooperation, and raising awareness is crucial to creating a lasting impact against illegal online gambling.
LACK OF PUBLIC AWARENESS
Despite authorities’ efforts, a significant challenge lies in the lack of widespread public awareness about the risks and legal consequences of online gambling. Many individuals, particularly the youth, remain unaware or misinformed about the implications of engaging in these illegal activities. The allure of easy money and anonymity has led many to underestimate the potential dangers. Without proper education and awareness campaigns, individuals may inadvertently fall victim to fraudulent practices, financial losses, or legal repercussions. The absence of comprehensive public awareness has also allowed misconceptions and myths about online gambling to persist, with some perceiving it as harmless entertainment or a way to supplement income, failing to recognize the potential for addiction, financial ruin, and legal consequences. Effective public awareness campaigns are crucial in addressing this knowledge gap, educating the public, particularly vulnerable groups, about the legal status and potential risks involved with online gambling in Bangladesh. Raising awareness is key to curbing the proliferation of illegal online gambling activities.
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HOW BANGLADESH CAN CURB ILLEGAL ONLINE GAMBLING?
As the government and the law informant agencies are struggling to control gambling, a comprehensive and multifaceted strategy is crucial to curb this menace effectively.
- Enact clear and comprehensive laws: Bangladesh needs to enact clear and comprehensive laws specifically addressing online gambling. These laws should define what constitutes online gambling, outline penalties for operators and participants, and provide a legal framework for enforcement.
- Strengthen international cooperation: Given the cross-border nature of online gambling, Bangladesh should strengthen cooperation with other countries and international organizations to share information, coordinate enforcement efforts, and potentially extradite operators of illegal gambling sites.
- Enhance cyber security measures: Authorities should invest in advanced cyber security measures to detect and block new online gambling websites more effectively. This could involve implementing sophisticated web filtering and monitoring systems, as well as collaborating with internet service providers (ISPs) and domain registrars.
- Regulate payment gateways: Bangladesh can regulate payment gateways, such as mobile financial services (MFS) and banks, to prevent transactions related to online gambling. This could involve requiring additional verification and monitoring of suspicious transactions.
- Raise public awareness: Launching widespread public awareness campaigns is crucial to educate people about the risks and legal consequences of online gambling. These campaigns should target various segments of society, including youth, rural communities, and potential problem gamblers.
- Consider regulated alternatives: Bangladesh could consider legalizing and regulating certain forms of online gambling under a strict licensing and taxation regime. This could provide a safer and more transparent environment for those who wish to gamble while generating revenue for the government.
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Effectively curbing online gambling in Bangladesh will require a multi-pronged approach involving legal reforms, enhanced enforcement, international cooperation, and a concerted effort to address both the supply and demand sides of the issue. In conclusion, the rise of online gambling in Bangladesh represents a growing challenge with far-reaching societal and economic implications. While authorities have taken steps to combat this issue through website blocking and legal enforcement, these efforts have proven inadequate. Tackling the issue of online gambling requires a concerted effort from all stakeholders. Only through a collaborative and comprehensive strategy can Bangladesh effectively curb this menace and safeguard its social and economic fabric.