iGaming has been illegal in Pakistan since the inception of the independent state, and the current legislation still prohibits this entertainment. Like in many other Islamic countries, playing games of chance is considered a sin, and holding venues or attending them leads to penalties. The punishment varies from a minimum fine to imprisonment, which depends on the amount of money invested.
The Pakistani government doesn’t soften regulations even considering the rapid evolution of iGaming, but locals still play online slots and other games. According to research, approximately 22% of residents get around the ban. How does such a high engagement intervene in severe industry restrictions?
Development of Illegal iGaming in Pakistan
The Pakistani law mostly concerns offline gaming, so iGaming sites offices are strongly forbidden in the country. Horse racing wagering and national lottery are the only exceptions since these activities are legal. However, they are not enough for local risk seekers, which is why many residents search for alternative ways to enjoy gaming.
All forms of real money gaming are prohibited in Pakistan, but multiple international companies enter the country’s market and provide locals with tons of thrilling games and amazing bonuses. Therefore, many prefer to play without restrictions at non GamStop casino games despite the risk of being penalised, making the state one of the most lucrative target markets for overseas gaming. It’s worth noting that no abroad operator has been fined yet, as limitations mostly concern domestic platforms and land-based venues. Users and online gaming companies take advantage of this legislation gap, which allows the industry to flourish within the country.
Reasons for Banning iGaming Activities in the Country
Religion in the state is the primary reason why iGaming-related activities are completely prohibited. According to the Quran, games of chance are a grave sin that can destroy families and people’s wealth. In addition to beliefs, iGaming is often associated with social problems, corruption, and crimes. Therefore, the Pakistani government aims to protect the population from any possible harm, and the full restrictions on real-money gaming are the most efficient model.
Broad Acceptance of Pakistani Players on Gaming Platforms
Many international online gaming accept the country’s residents and provide them with impressive service and a fantastic game choice. Therefore, Pakistani players often prefer to take risks and join gaming platforms to have fun and win real money. Currently, there are no instances of online gaming activities being penalised, so more and more users consider this entertainment option, although it goes against primary religious principles.
Potential for Changes in Pakistani iGaming Regulations
Unfortunately, the country’s government and regulatory authorities demonstrate no interest in any real-money gaming updates. The situation in the industry is not likely to change in the near future, so the ban on real-money gaming will remain valid. Even though risk hunters in Pakistan would be happy to get more flexibility and freedom in terms of gaming, there’s no evidence that new regulations will delight them. Pakistan, like other Islamic countries, heavily relies on religious principles, and allowing gaming would become a Quran violation.
Benefits of Legalisation
Even though there are no signs that the government may initiate any changes, we cannot know for sure whether the regulations would be improved. There’s always the chance that responsible authorities will start discussions on the ban on indulgence, which will positively impact all the parties. First, players will have the possibility of legally joining online gaming. Of course, in this case, the government and licensing bodies will be obliged to increase customer awareness of safer gaming and promote a healthy approach to this entertainment.
Next, gaming operators will also gain more advantages since they will be able to target Pakistani players legally and increase customer engagement. However, the legalisation of the industry will possibly require online gaming and sports wagering to pay taxes in the country, reducing their revenue. However, increased user interest in digital gaming will allow operators to generate more income, which will eventually have a positive impact. Last but not least, the Pakistani budget will be replenished with additional earnings from industry players.
Challenges for Legalisation
At first glance, there’s nothing simpler than removing the ban on iGaming and allowing players to freely engage in risky entertainment. However, a lot of work is behind this decision. Therefore, if the Pakistani government makes a decision to legalise real money gaming industry, it will have to develop an appropriate infrastructure both for brick-and-mortar venues and online gaming.
First, it will have to launch an appropriate licensing authority that would control all operators in Pakistan and ensure their fairness and transparency. Such an approach helps make the industry trusted and secure. In addition, regulatory bodies should inform players about the potential consequences of compulsive gaming and provide appropriate resources for those targeted by the problem. Moreover, it’s essential to create a suitable taxation system that will help domestic and foreign companies evolve in the country and replenish Pakistan’s budget. These decisions require many discussions and significant financial investments.
Final Verdict
No changes in iGaming regulations are predicted in Pakistan in the foreseeable future. The sector is illegal in the country, and attempts to establish offline gaming and sports wagering are fines. However, iGaming doesn’t face such strict regulations as it’s not specified in the law. Therefore, country’s residents can join overseas platforms without significant consequences. Eliminating the ban could be beneficial for all parties, including players, operators, and government, but there are currently no updates on this issue.
