Gambling and online casinos in Pakistan
Pakistan is an Islamic republic where gambling is banned at the constitutional level.
Gambling is contrary to Sharia law and is considered a sin (haram), so casinos, bookmakers and online gambling are completely outlawed.
Nevertheless, despite severe restrictions, the shadow gambling market continues to exist, especially on the Internet and in large cities.
Legislative framework
The legal basis for the prohibition of gambling in Pakistan dates back to the British colonial act - Public Gambling Act 1867, which was adapted after independence.
In 1977, under the rule of Zia-ul-Haq, the Prevention of Gambling Act (Federal Ordinance XXXV of 1977) was passed, which:- completely bans casinos, betting and lotteries;
- criminalizes organizing or participating;
- applies to both offline and online gambling;
- allows only national charity lotteries held with government approval.
- fines from ₨1 000 to ₨20 000;
- arrest up to 1 year;
- confiscation of equipment and facilities.
For the organizers of illegal games, the punishment is stricter - up to 5 years in prison.
Religious aspect
Pakistan is an Islamic republic and Islam is at the heart of all government policy.
According to Sharia, gambling (maisir) is prohibited by the Qur'an and is considered an unfair way to earn money.
This ban applies to all kinds of games where the outcome depends on luck, including:- roulette, poker, dice, bingo, lotteries;
- sports betting, horse racing, esports;
- online casinos and sweepstakes.
Religious scholars and the Council of Islamic Ideology (CII) have repeatedly confirmed that any gambling is contrary to Islamic principles and "harms the morality of society."
Exceptions and legal forms
The only acceptable form of "gaming" events are charity lotteries and sweepstakes held under state control.
In addition, there are sports betting for horse racing and cricket in the country, but they are not advertised and are limited to domestic clubs, most often private and elite.
Online gambling
Online gambling is also prohibited in Pakistan.
Since 2015, the government has implemented the Prevention of Electronic Crimes Act (PECA), which allows sites to be blocked and individuals involved in illegal online transactions to be arrested.
Control and interlocks:- Pakistan Telecommunications Authority (PTA) blocks thousands of online casino and betting sites annually;
- State Bank of Pakistan (SBP) prohibits transfers to foreign gambling platforms;
- banks are obliged to block transactions with the keywords "bet," "casino," "poker," "1xBet," etc.;
- using a VPN to bypass locks can also result in a fine.
- offshore sites (Curaçao, Costa Rica, Malta);
- cryptocurrency (Bitcoin, USDT) for deposits and withdrawals;
- telegram bots and private clubs disguised as gaming platforms.
Illegal market
According to research agencies, the shadow gambling market in Pakistan is estimated at $1.5-2 billion per year.
The most common:- cricket betting, especially during the IPL and PSL;
- private card games and roulettes at elite homes in Karachi, Lahore and Islamabad;
- online bets via Telegram and WhatsApp with payments in cryptocurrency or cash.
The state periodically conducts raids against the organizers of illegal games.
In 2024, Karachi police closed over 50 illegal casinos, seizing equipment and large amounts of cash from operators.
Financial constraints and the role of cryptocurrencies
Since bank transfers to gambling sites are blocked, cryptocurrencies have become the main bypass channel.
Players use Bitcoin, Ethereum and Tether (USDT) through Binance and Trust Wallet wallets.
This creates problems for law enforcement agencies, since transactions are difficult to track.
In 2023, State Bank of Pakistan officially banned all cryptocurrency operations, but this only strengthened the transition of players to the "gray" segment.
Social context and the fight against addiction
Gambling in Pakistani society is perceived as morally unacceptable behavior.
Media and religious leaders regularly campaign against online gambling, emphasizing its harm to family and youth.
Instead, the government promotes the concept of "halal leisure" - sports, e-sports, mind games and education.
Taxation and economics
Since gambling is prohibited, there are no official taxes or licenses.
However, economists note that the shadow market annually sends millions of dollars abroad through cryptocurrency and unaccounted transfers, which damages the financial system.
According to the Ministry of Finance, in 2024, PECA investigations alone revealed more than 200 million PKR ($700 thousand) illegal transfers related to online gambling.
Prospects
Prospects for legalizing gambling in Pakistan are virtually non-existent.
Reasons:- Islamic law;
- public condemnation;
- political risks;
- concerns about the "cultural influence of the West."
Nevertheless, analysts note that the shadow online market will grow, especially among young people with access to VPNs and cryptocurrencies.
Some experts suggest considering a regulated model of fantasy sports as a compromise between economics and ethics, but parliament does not yet support such initiatives.
Pakistan is one of Asia's toughest gambling bans.
All forms of casino, betting and online gambling are banned, and violators face real prison sentences.
Nevertheless, reality shows that the ban did not destroy the excitement - it only faded into the shadows.
Illegal platforms, crypto channels and offshore sites continue to serve the growing demand.
Gambling in Pakistan remains a symbol of society's duality: religion and law are banned, but interest and technology make complete control impossible.
And if neighboring India and Nepal are moving towards regulation, then Pakistan is still choosing the path of an absolute ban - even at the cost of leaking billions of dollars into the shadows.