Gambling has been illegal in the state of Pakistan under the Prevention of Gambling Act Law since 1977. Similar to other Islamic countries, playing games of chance is prohibited, with harsh penalties including imprisonment. However, this has not stopped Pakistani residents from enjoying what the iGaming world has to offer, resulting in a growing illegal iGaming industry in the country.

Pakistan gambling laws

As the law stands, all forms of gambling are prohibited in the Pakistan region, except for horserace betting and the national lottery. The ban is mainly focused on offline sportsbooks and land-based gaming venues, excluding any foreign platforms that may target users based in Pakistan.

No new law updates regarding the iGaming industry are being discussed, however with the rapid development in the digital sector along with the increasing interest in the iGaming industry, the Government may be pushed towards holding a discussion regarding this outdated law.

A growing illegal iGaming community

Due to the increasing popularity in this sector, Pakistani residents have persisted in finding ways to still enjoy what the industry has to offer. This has pushed players to join international online gaming and bookmaker sites, aware of the chance of being penalised by the government.

No international operator has been fined yet by the Pakistan government, as their focus has remained land-based, therefore users have been taking advantage of such knowledge, taking the risk and creating a growing illegal iGaming community.

Way forward

Since the iGaming and betting environment in Pakistan remains uncontrolled, there are no strict regulations or penalties being implemented, therefore there is a higher chance of problems occurring, such as a lack of consumer protection and not being able to find the appropriate help for gambling addictions.

Given how fast the industry is growing and its popularity amongst the Pakistani population, the government would benefit from opening a discussion regarding the laws in place, as legalising activities such as online sports betting or casino gambling can help create a controlled and regulated industry. This will further create regulatory authorities and resources for those who may face problems within the industry. The Government also has the opportunity to receive additional revenue through iGaming taxes, making the legalisation beneficial to all parties.

According to Bloomberg, legalising gambling can be an extremely lucrative move for the UAE, as it will also draw in more tourists from neighbouring countries, and potentially generate an investment from China, booming the economy further.

Islamic countries revise their gambling laws to adapt with the expanding world of iGaming. Lebanon adjusted its gambling law in 1959 to allow only authorised types of gambling, whilst Morocco allowed sports betting, lotteries, and casino games. These cases prove that controlling the way the citizens gamble is a good and safer alternative to not allowing it at all.