The online gambling market in Pakistan has formed a unique underground economic ecosystem between Islamic law and national law. Despite the Gambling Ordinance of 1977 and sections 294-A to 294-D of the Pakistan Penal Code explicitly prohibiting all forms of gambling activities, the scale of the gray market operated through international gambling platforms and local agent networks continues to expand, with the estimated annual transaction volume in 2023 exceeding 50 billion Rupees (approximately 180 million USD).
The driving force behind this market mainly comes from the fervent demand for cricket betting, especially during the Pakistan Super League (PSL) and the Indian Premier League (IPL), where underground betting volumes surge by 300%. Young male players access international platforms such as 1xBet and Dafabet through VPNs, or participate in local bookmakers' "credit betting" systems via WhatsApp and Telegram groups.
The Pakistan Telecommunication Authority (PTA) has blocked over 200 gambling websites in recent years, but technological evasion methods are emerging endlessly, including cryptocurrency payments (such as USDT) and underground money changer networks.
The regulatory dilemma lies in the disconnection between law and reality—although in theory, violators could face up to one year in prison or fines, enforcement mainly targets offline casinos, with limited crackdowns on online activities. Moreover, a 2022 ruling by the Sindh High Court further blurred regulatory boundaries by determining that "whether online poker constitutes gambling needs to be assessed on a case-by-case basis."
It is noteworthy that some international operators provide services to Pakistani players through licenses from Curacao or the Philippines and introduce Urdu interfaces and Rupee settlements, while local underground networks rely on cricket clubs and cafes to establish tiered agents, even offering "post-match settlement" and other credit services.
Facing this situation, the Pakistani government is confronted with a dilemma: on one hand, the Islamic Ideology Council firmly opposes any proposal to legalize gambling; on the other hand, the issues of tax revenue loss and capital flight are becoming increasingly severe, with funds exceeding 60 million USD flowing to overseas platforms through cryptocurrencies in 2023 alone. The future market direction may depend on two key factors—whether the proliferation of 5G will further expand the player base, and whether pressure from the international anti-money laundering organization (FATF) will compel Pakistani authorities to upgrade financial monitoring.
Currently, this underground economic and regulatory cat-and-mouse game continues, and every cricket season is a new test of the law's effectiveness.
