Is Gambling Legal In Pakistan
This is a two part series. First we discuss gambling in Pakistan, then we move to Pakistan and “Online” Gambling in Part II.
- Is Gambling Legal In Pakistan Saudi Arabia
- Gambling Law In Pakistan
- Is Gambling Legal In Pakistan Rupees
In Pakistan we have strict anti-gambling law. Gambling is also unlawful in Shariah. Despite this, it is estimated the gambling mafia profits (PKR) Rs. 14 crore ($1.43 million USD) annually by accepting cricket bets from Pakistani people. Because we know of many sites such as www.Bet365.com that are highly used among Pakistanis (most don’t talk about it). We are fully aware cricket betting accumulates much larger figures because online wagers are difficult – if not impossible to track. This is before mentioning prize bonds, card games, dice games, roulette and other sports.
Pakistan is a predominantly Muslim country that was created in 1947 by the division of India. This division largely separated India's Hindus from Muslims in what is now Pakistan. There are no legal casinos in Pakistan. Most gambling there is forbidden but enforcement is mostly focused on bookies rather than bettors. For many online gamblers in Pakistan, the most important factor of all is security. After all, one of the main reasons people gamble is for the chance to win money – so it’s vital that your funds are 100% safe. What Are the Gambling Laws? The law that makes gambling illegal in Pakistan is the Prevention of Gambling Act, 1977. The penalties are up to a 1000 PKR fine and up to one year in prison for gambling. There are many articles that falsely claim small time gamblers are never arrested under this law, or they even say it does not apply to the internet.
In this article I’ll start by discussing how this activity seeped into our culture and address the current laws. I also provide details of how our people deposit and wager with online betting sites, and speculate on the future of gambling in our nation.
Horse Racing and Prize Bonds Lead to Cricket Betting
Pakistan had never embraced any form of legal gambling until tote betting on horse racing was legalised in 1979. This was such an unlikely event. Only in 1930 were we established as a separate Islamic majority state. Only in 1956 we gained full independence becoming the Islamic Republic of Pakistan. Though we had a more democratic constitution in 1973 we took Islam as our national religion as part of that constitution. To legalise horse betting was to rejection of the Sunnah, or so many thought.
Horse racing is now explained in most every book on Islamic law. The Holy Quran explains that gambling is an evil activity of Arab society, and Arabs used horse racing for gambling. However, because breeding a good horse is required for defence and other purposes, horse racing is allowed. The Holy Prophet (peace be upon him) made horse racing lawful when a third party (Mohallil) is added. This means if funds are put up as a prize, and at least one competitor has the chance to win that prize (without he himself gambling) then this is lawful. Although this can still be debated, horse race betting is allowed in the Islamic Republic of Iran based on the same interpretation.
Prize Bonds Popularised in 1981
Shortly after horse racing was legalised, prize bonds became popular. These existed prior but took their current form in 1981. This is not actually gambling. This involves bearer instrument bonds. These pay no interest. Instead, a drawing is held quarterly for a prize. Today there are many prize bonds available including Savings Account (SA), Pensioner’s Benefit Account (PBA), Special Savings Account (SSA), Student Welfare Bond (SWB), etc.
Again, these pay no interest but rather provided a chance at a prize. First place prizes are very large. For many, this is only legal chance at becoming wealthy overnight. The available denominations and sizes of the prizes are shown in the table.
There are many Pakistan laws regarding prize bonds. They were first mentioned in the The Public Debt Act, 1944 but with far more details in the Public Debt Rules, 1946. There were also rules published in 1981 before all was redrafted in the Prize Bond Rules, 1999 (no English copy available). The latter has been amended many times. There is also a 10% income tax withholding on prizes as specified under the Income Tax Ordinance (ITO) of Pakistan, 2001 – Section 156(1) Division III of part V. To learn more about the laws of the land regarding prize bonds see: Pakistan Prize Bond FAQ by State Bank Pakistan.
Although legal under local law such activity is not halal. It is not permissible to purchase these bonds because they include both interest and gambling. The money spent on prize bonds is a loan because no person would purchase these for business as no interest is paid. There is however interest – instead of giving it to one person, it is given to the winner of a lottery draw. The fact this is gambling has not stopped much of Pakistan from participating; prize bonds are very popular here.
Betting Races and Sports Start
Though unlawful in Shariah, with horse race betting and prize bonds legal under the laws of Pakistan it didn’t take long for cricket betting to become popular too. This started with bookmakers that were available trackside at races. It was in 1991 that Lahore bookies began offering betting in rupee to the general public. When this happened, they also began booking cricket bets for the crime syndicates in Mumbai who controlled the odds.
Match Fixing an Immediate Concern
During the 1980’s, the general public used an Asian betting syndicate in London to place bets on Pakistan horse races. It was believed during this period many horse races were fixed. It wasn’t long before similar allegations came to cricket.
In 1994 three players from Australian cricket claimed Pakistan’s captain Saleem Malik offered them bribes to fix a match. He was initially suspended but then found innocent and was allowed to continue his career. He would play his last Test match in January 1999 ending his career in disgrace. He was banned in May 2000 as a result of the Justice Qayyam’s inquiry into cricket match fixing where Shane Warne was amongst the players to testify that Saleem Malik attempted to fix the 1994-1995 Test.
1 Next: Online Betting Laws for Pakistan
The debate about whether or not to legalize online gambling, and what form that regulation should take is not just an issue hotly debated in the U.S. and Europe. In parts of Asia, for instance, many people are starting to speak out in favor of legal online gambling, including in the Islamic Republic of Pakistan, a country of more than 182 million people. Recently, a Pakistani journalist published an opinion piece in The Nation that perfectly summarizes the arguments for bringing online gambling into the open, and allowing it to occur legally under the control of the national government in Islamabad.
Is Gambling Legal In Pakistan Saudi Arabia
Current State of Gambling in Pakistan
In his opinion piece, Haroon Riaz briefly outlined the current state of gambling in Pakistan. At the present time, all types of online gambling are illegal, as are casino games at brick and mortar casinos. Horse racing is legal in the country, primarily because it has long been a favorite past time of wealthy Pakistanis. The government can also sponsor events that involve gambling, but no private individual or company is permitted to hold such events without direct government permission, which seems to be rarely given. The gambling laws in Pakistan were established by the Prevention of Gambling Act 1977 long before the Internet was a concept. Remarkably, some parts of Pakistan are still using regulations from The Public Gambling Act of 1867 to deal with gambling issues.
Arguments Against Legalizing Online Gambling
Riaz does a fine job of explaining why there is opposition to legalized iGambling in Pakistan, and why lawmakers do not seem to be in a rush to do anything about the country’s antiquated set of laws. As in many parts of the world, gambling is considered by many Pakistanis to be a vice, and there are serious concerns about the risks of gambling addiction. In a country where many people live in poverty, there are also concerns about people gambling away what little savings they have. Still, Riaz argues that while legitimate concerns exist, people should be free to make their own moral and financial decisions regarding whether or not to gamble.
Arguments for Legalizing Online Gambling
After outlining the current state of gambling in Pakistan, Riaz presents his argument as to why it’s time for a change in Pakistan. He states that even though there is a ban on gambling, Pakistanis still find ways to place bets and to gamble, but at the present time, the revenues generated go to fund organized crime and offshore companies. Riaz feels that by legalizing gambling and bringing it under the control of the government, crime would be reduced. He also states that the Pakistani government would gain valuable revenue in the form of tax dollars.
Riaz closes his piece by discussing so-called gambling games of skill, urging Pakistan to legalize not only online poker and online casino games but also online fantasy sports betting on popular cricket and football leagues. Only time will tell if more voices will join Riaz’s in calling for a change in gambling policy in Pakistan.
Pakistan’s First Legal Betting Platform
While the debate rages on, Pakistan is set to launch its first ever legal online betting platform, albeit one in which players will have no worries about losing their own money. The webiste, Titled Punter Babu, is fronted by the singer Ali Aftab Saeed and will initially focus on allowing players to place only virtual wagers on the Pakistan Super League (PSL). As Saeed explains:
“We would allot punters virtual money and they can place bets on different scenarios within the game such as the batting order or who would take the most wickets.”
Allaying any concerns that players may be tempted to trade in the points they earn for real money, Saeed stated that anyone attempting to do so would have their access blocked to the site. Further highlighting the difficulty players would have in trying to contravene the site’s conditions of service, Saeed said that unlike in Zynga poker where two players can deliberately lose chips to another person, in Punter Babu players compete against a computer system.
Following its initial launch this month, Titled Punter Babu is aiming to branch out from featuring just cricket matches to also include other popular sports, including tennis and football.