Lottery activities are legal in Bhutan only when operated by the government, making it the sole permitted form of gambling in the country. All other forms of gambling including casinos, betting, and online gambling are completely prohibited under Section 393 of the Bhutan Penal Code 2004 (1). Government-licensed lotteries are specifically exempted from the legal definition of gambling and operate under strict regulations overseen by the Ministry of Home and Cultural Affairs and Department of Law and Order.
Royal Bhutan Lottery Limited was officially launched by the Finance Minister on April 8, 2016 in Phuentsholing as the sole authorized state-run lottery operator. The company operates as a state-owned enterprise with a multi-sectoral board of directors chaired by the Finance Secretary and senior representatives from various ministries (2). Private lottery businesses by individuals, entities, religious institutions, NGOs, educational institutions, and other organizations are strictly prohibited under public notices issued by the Department of Law and Order.
"A defendant shall be guilty of the offence of gambling if the defendant stakes or wagers something of value upon the outcome of a contest of chance or a future contingent event not under the defendant's control."
The government's restrictive approach reflects Bhutan's commitment to Gross National Happiness principles, prioritizing citizen wellbeing and cultural values over economic gains from gambling industries. Bhutan Lottery Limited offers five lottery schemes including Phuensum Dharim, Thuensum Scratch, Super Saya Bumper, Fortnightly Scheme, and Special RayDrup Bumper (1). Enforcement authorities continue conducting regular crackdowns on illegal gambling activities, with violations dealt with according to the Penal Code provisions that grade gambling offences as petty misdemeanors.
Source:
https://www.igamingtoday.com/gambling-regulation-in-bhutan/
https://mof.gov.bt/launching-of-royal-bhutan-lottery-limited-rbll-08-apr-2016/
Last updated: 16-10-2025 Disclaimer: This article does not provide legal advice. If you need legal advice, please contact an attorney directly.