Pakistan, also known as the Islamic Republic of Pakistan, is a country in South Asia, bordering India to the east and Afghanistan to the west. The country also shares borders with China to the northeast and Iran to the southwest. Pakistan ranks as the fifth most populous country in the world, with a population of over 225 million.
Pakistan has a long history of being part of different empires, starting with the Indian Mauryan Empire and ending as a colony of the British Empire. In 1947, following the Pakistan Movement led by Muhammad Ali Jinnah, the country was declared an independent nation. In 1956, a new constitution was approved, and Pakistan was proclaimed an Islamic republic. Like other predominantly Muslim countries, Pakistan has deemed all forms of gambling illegal.
Online gambling is also considered an unlawful act in Pakistan. In fact, those caught gambling at virtual casinos can face jail time, as wagering at online casinos may be regarded as operating a gaming house. There are a few laws that regulate gambling within the territory of Pakistan. That said, the key law under which any form of gambling in the country is forbidden is the Prevention of Gambling Act of 1977.
While gambling is illegal in Pakistan, that does not mean there are no attempts to break the law. In this article, we will cover all the legalities concerning gambling in Pakistan and the consequences one might face for violating them.
Gambling Regulations
As already mentioned, all forms of gambling are illegal within Pakistan. The legislation that renders such activities unlawful is the Prevention of Gambling Act 1977. This act is largely based on the Public Gambling Act of 1867, which came into effect during the British Empire. In 1978, provincial versions of the Gambling Act were adopted.
The amended law replaced several earlier statutes that had regulated gambling in different regions of Pakistan. Among the repealed acts were the Prevention of Gambling Ordinance in Baluchistan, West Pakistan, Punjab, and Sindh, all enacted in 1961.
Public Gambling Act 1867
Prevention of Gambling Act 1977Online Gambling
Since the Gambling Act was adopted before online gambling really existed, it is understandable why the activity is not specifically mentioned in the law. That said, online gambling is still considered illegal in Pakistan and anyone caught gambling online may be penalized according to the section that forbids participation in gambling in a common gaming house.
Even though all forms of gambling are deemed illegal in Pakistan, the lack of regulation on online betting provides a legal loophole that some offshore sites exploit. It can be difficult, however, to find a reputable gaming or betting website that accepts registrations from Pakistan. Although there might be some websites that cater to Pakistani players and punters, one should keep in mind that this activity is still illegal and may lead to severe penalties.
Horse Race Betting
While all forms of gambling are illegal in Pakistan, tote betting on horse races became legal in 1979. The decision to legalize wagers on the sport was made by General Mohammed Zia-ul-Haq, the then military ruler of Pakistan. While this move seemed unreasonable to many, there were speculations that this was the General’s way to win over numerous politicians who supported his regime and were racehorse owners themselves.
Even though placing wagers on horse races has become legal, the activity is entangled with numerous corruption cases. Often, horse owners and bookmakers intentionally fix races, profiting from the losses of the public betting on the horses favored to win.
Naturally, as Pakistani punters developed an appetite for betting, underground cricket gambling also became popular in the country. At the beginning of the ’90s, bookmakers based in Lahore were accepting record-high numbers of cricket bets, joining forces with bookies based in Mumbai, India. Unfortunately, this sport was also corrupted by numerous attempts to bribe cricket players to throw games, providing influential Pakistani bettors with guaranteed profits.
Horse Racing Betting Taxes in Pakistan
Being the only form of betting that has been legalized in Pakistan, horse racing wagers are subject to taxes. These taxes are determined by The Punjab Horse-Race Betting Tax Act, which came into effect in 1958. Under this legislation, punters who place wagers on horse races are required to pay a tax that must not exceed 20% of the amount they have staked on their bets.
The taxes collected by bookmakers must be remitted to the manager responsible for betting tax collection on behalf of the Government. Under the same act, it is also stated that the Government has the right to decide the specific time and place at which bookmakers are allowed to accept and settle horse racing bets. The law also requires that winning bets be paid to punters in the form of a check.
The manager appointed by the Government is responsible for overseeing the bets collected by bookmakers or totalizators, as well as the taxes paid by punters. It is also within the manager’s remit to ensure that winning bets are paid accordingly.
Closing Thoughts
Although Pakistan was a colony of the British Empire for many years, many of its laws remained just as stringent after it became an independent country. Because Pakistan was declared an Islamic country, it comes as no surprise that gambling is not tolerated under Pakistani law. As expected, all forms of gambling are currently illegal in Pakistan, and those who break the law face harsh penalties.
Currently, gambling activities in Pakistan are regulated by the Prevention of Gambling Act of 1977. Since the act was adopted at a time when online gambling did not exist, it does not provide any specific clarification on the legality of virtual gaming. For this reason, some offshore online casinos accept players from Pakistan, offering them various games for real-money wagering. That said, one should remember that, except for horse racing betting, all forms of gambling are considered illegal in Pakistan, and this restriction applies to online gaming as well.
While some believe that the country needs to update its laws and decriminalize certain gambling activities, there are currently no signs of changes to the legal status of land-based or online gambling in Pakistan.