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Wednesday, 07 January 2009
An End to Gaming Centers Print E-mail
By Ch.Sumiyabazar   
Monday, 07 August 2006
Last Friday was the final day of operation for the electronic gambling centers that have flourished in recent years.

On August 2, Minister of Justice and Home Affairs D. Odbayar canceled the special licenses of 143 electronic gambling centers in Ulaanbaatar for violation of conditions of specially licensed operations.  This marked the end of electronic gambling in Mongolia.

In July, the Supreme Court issued an interpretation of Clause 8.1.3 of the Law on Special Licensing of Business Operations, which states that operation of casinos is prohibited. The court ruled that a casino is a building or room that accommodates certain types of gaming activities of chance which involve electronic devices, cards, coins, dice or slot machines played with cash or tokens.

The law was adopted in February 2001. But the government did not consider gaming centers as casinos and granted 158 special licenses for them to companies and individuals. 15 of them had already been canceled before Friday’s announcement.

In the spring session of parliament, the State Great Hural agreed to increase the excise tax on gaming centers. According to law, such centers must pay US$80,000 per desk.

According to a temporary council of gaming center owners, over 3,000 people have lost their jobs as a result of last week’s action. “This regulation by Odbayar forces gaming centers to operate underground and become more organized,” said an anonymous owner of a gaming center on Baga Toiruu street.

In recent years, the numbers of both foreign and domestic electronic gambling centers have increased in urban areas, especially Ulaanbaatar.

 

Last Updated ( Sunday, 01 October 2006 )