Is Gambling Legal in Pakistan? Laws, Penalties & Online Regulations

Key Information

Last Update 2025

Regulatory Authority No dedicated gambling authority; enforcement by law enforcement agencies under the Prevention of Gambling Act, 1977

License Cost Varies

Regulation by Activity Type

Casinos Prohibited

Online Casinos Prohibited

Betting Partially Regulated

Online Betting Prohibited

Lotteries Partially Regulated

Poker Prohibited

Highlights

All forms of gambling are illegal in Pakistan under the Prevention of Gambling Act 1977, except for horse racing and some state lotteries.
Online gambling is not specifically mentioned in law but is interpreted as prohibited; the Pakistan Telecommunication Authority blocks gambling sites.
Penalties for illegal gambling include fines and imprisonment, with enforcement targeting both operators and participants.
There is no formal licensing or regulatory authority for gambling operators, except for limited oversight of horse racing clubs and state lotteries.
Religious and cultural factors, rooted in Islamic law, strongly influence the strict prohibition and lack of regulatory reform.
Despite strict laws, underground and offshore gambling markets thrive, with many residents accessing international platforms via VPNs.
No significant changes or legalization efforts are expected soon, and taxation of gambling activities is not established due to the blanket ban.

Legislation

Primary Legislation

The legal framework governing gambling in Pakistan is highly restrictive and is rooted in both national legislation and Islamic principles. The core laws currently in force are:

Prevention of Gambling Act, 1977: This is the principal legislation prohibiting all forms of gambling across Pakistan. It criminalizes both the operation and participation in gambling activities, with penalties including fines and imprisonment. The Act defines gambling broadly to include any game of chance or betting activity involving money or valuables. Exceptions exist for certain activities such as horse racing and some state-run lotteries, which are regulated separately. The Act also empowers law enforcement agencies to search, seize, and take action against premises suspected of facilitating gambling.
Pakistan Penal Code (PPC), Section 294A: This section further criminalizes the operation of public gambling establishments, reinforcing the prohibitions set out in the 1977 Act.
Provincial Legislation: After the introduction of the Prevention of Gambling Act, 1977, provincial versions were enacted, replacing previous ordinances and ensuring the law applies uniformly across all provinces. These provincial acts mirror the federal law and maintain strict prohibitions.

These laws collectively form a comprehensive ban on gambling activities, with only narrowly defined exceptions. Online gambling is not explicitly mentioned in the original legislation, but authorities interpret the general prohibitions to include online betting and gaming platforms. The legal framework is further influenced by Islamic law, which considers all forms of gambling (maisir) to be forbidden.

Regulatory Authority

Pakistan does not have a centralized, dedicated gambling regulatory authority for commercial gambling due to the overall prohibition. However, oversight and enforcement responsibilities are distributed among several governmental and law enforcement bodies:

Law Enforcement Agencies: Police and other law enforcement bodies are empowered by the Prevention of Gambling Act, 1977 to investigate, search, and prosecute gambling-related offenses, including the authority to raid suspected gambling venues.
Provincial Governments: Provincial authorities have the mandate to regulate exceptions permitted under the law, such as licensing and oversight of horse racing clubs and state lotteries within their jurisdictions.
Pakistan Telecommunication Authority (PTA): For online gambling, the PTA is responsible for blocking access to illegal gambling websites and enforcing digital restrictions as part of broader internet regulation.

There is no regulatory body for licensing or supervising commercial gambling operators, as all such activities are illegal except for the specific exceptions mentioned above. Enforcement and regulatory actions are focused on maintaining the prohibition and curbing illegal gambling operations.

License Types

Gambling Licensing System in Pakistan

Pakistan maintains one of the strictest gambling regulatory environments in the world. The licensing framework is defined by the Prevention of Gambling Act, 1977 and related provincial laws. The system is characterized by a near-total prohibition on gambling, with very limited exceptions. Below is a detailed overview of the current licensing system for gambling activities in Pakistan, focusing exclusively on license types, procedures, requirements, and costs.

Types of Gambling Licenses Available

Horse Racing Betting Licenses: The only widely acknowledged legal form of gambling license in Pakistan is for pari-mutuel betting on horse racing. These licenses are issued to authorized horse racing clubs.
State-Run Lottery Licenses: Occasionally, the government has operated state-sponsored lotteries. Licenses for these are rare, strictly regulated, and typically issued directly to government entities or their contractors.
Tourist Complex Licenses: There is a legal provision for gambling licenses in tourist complexes, but these are regulated by provincial authorities and are accessible exclusively to foreigners. In practice, such licenses are extremely rare and not part of any open application process.

Application Process and Procedures

Horse Racing Clubs:
- Application for a betting license must be submitted to the relevant provincial government authority or the Gambling Board of Pakistan.
- The process involves detailed scrutiny of the club’s operations, membership, and compliance with the legal framework.
- Licenses are typically granted only to established horse racing clubs with a verifiable history and infrastructure.
Lottery Operators:
- Licenses for state-run lotteries are not open to private operators; they are issued to government agencies or through specific government contracts.
Tourist Complexes:
- Provincial governments may issue licenses for gambling activities within tourist complexes, but only for the use of non-Pakistani nationals. The process is not public and is subject to strict government oversight.

Duration and Renewal Conditions

Licenses for horse racing betting are typically valid for a specific racing season or a set period, as determined by the issuing authority.
Renewal requires demonstration of continued compliance with all legal and operational requirements, including financial transparency and adherence to betting regulations.
Lottery licenses, when issued, are valid only for the duration of the specific lottery scheme and are not automatically renewable.

Eligibility Criteria for Applicants

Only established horse racing clubs with recognized status and proper facilities are eligible to apply for betting licenses.
Applicants must demonstrate the ability to conduct betting operations transparently and in accordance with the law.
For tourist complexes, only entities operating under provincial government oversight and catering exclusively to foreigners may be considered.

Licensing Costs and Financial Requirements

Application and licensing fees for horse racing betting are set by the provincial governments or the Gambling Board of Pakistan. The amounts are not publicly standardized and may vary.
Lottery licensing costs are determined by government contract and are not open to private negotiation or application.
There are no published fee schedules for tourist complex gambling licenses, as these are rarely issued and handled on a case-by-case basis.

Key Requirements for Obtaining and Maintaining a License

Strict adherence to all operational, financial, and reporting requirements as set by the relevant authority.
Maintenance of transparent records and regular reporting to the licensing authority.
Compliance with anti-money laundering protocols and responsible gambling standards where applicable.
For horse racing, betting must be conducted only on authorized races and within the premises of the licensed club.
For tourist complexes, access to gambling activities must be restricted to foreigners only, with proper verification procedures in place.

Summary Table: Gambling License Types in Pakistan

License Type	Eligible Applicants	Application Process	Duration	Renewal	Estimated Costs
Horse Racing Betting	Authorized Horse Racing Clubs	Provincial application, compliance checks	Racing season or set period	Subject to compliance review	Varies by province, not public
State-Run Lottery	Government agencies/contractors	Government appointment/contract	Scheme-specific	No automatic renewal	Government-determined
Tourist Complex Gambling	Tourist complexes for foreigners	Provincial application, strict oversight	Case-by-case	Case-by-case	Not published

Important Notes

There is no licensing system for casino gambling, sports betting (other than horse racing), or online gambling in Pakistan.
All other forms of gambling are strictly prohibited and unlicensed activity is subject to criminal penalties.
International online gambling operators are not recognized or licensed by Pakistani authorities; their operations are considered illegal under current law.

Gambling Tax

Tax Rates for Gambling Operators in Pakistan

Gambling in Pakistan is largely prohibited under national law, with only a few limited exceptions such as state-run lotteries and pari-mutuel betting on horse racing at authorized clubs. There is no comprehensive taxation regime specifically designed for gambling operators due to the overall prohibition. However, where permitted activities exist (such as prize competitions, state lotteries, or horse racing), the following tax rules generally apply:

Type of Gambling Activity	Tax Rate	Basis of Taxation
Prizes on prize bonds or cross-word puzzles	15% (for filers) 30% (for non-filers)	Withholding tax on winnings
Winnings from raffles, lotteries, quizzes, or sales promotions	20% (for filers) 40% (for non-filers)	Withholding tax on winnings
Horse racing (pari-mutuel betting)	Subject to general corporate or income tax rates if applicable	Net income (if operator is a legal entity)

Basis for Taxation

The primary basis for taxation in the context of permitted gambling-related activities is withholding tax on winnings paid out to winners, not on operator gross gaming revenue (GGR) or turnover.
For any legal entity operating within the permitted scope (such as a club running horse racing), standard corporate income tax rates apply on net profits, not on turnover or GGR.

Tax Reporting and Payment Procedures

Entities responsible for paying out winnings (e.g., state lottery, authorized clubs) must deduct withholding tax at the time of payment and remit it to the Federal Board of Revenue (FBR).
Withholding tax returns must be filed monthly, detailing all amounts withheld and remitted.
If a legal entity is engaged in permitted gambling-related activity (such as horse racing clubs), it must file annual corporate tax returns and pay income tax on net profits according to the standard company tax regime.

Tax Incentives, Exemptions, and Special Provisions

There are no specific tax incentives or exemptions for gambling operators in Pakistan, as most forms of gambling are illegal.
The only notable distinction is the higher withholding tax rates applied to non-filers (those not on the Active Taxpayers List), which can be double the rate for filers.

Prohibited Individuals

Age Restrictions and Identification Requirements

There are no formalized, regulated age restrictions or mandatory identification requirements for gambling participants in Pakistan, as nearly all forms of gambling are prohibited. Since legal gambling venues are extremely limited, there are no established frameworks for verifying player age or identity at most gambling operations. The only exceptions—such as betting on horse racing at authorized clubs and participation in state-run lotteries—may enforce their own internal age and identification checks, but these are not standardized or widely publicized. For all other forms of gambling, including online and land-based casinos, there are no legal age verification procedures because such activities are illegal.

Prohibited Gambling Activities and Game Restrictions

All forms of gambling are strictly prohibited, except for:
- Betting on horse racing at licensed clubs
- Participation in rare, state-sponsored lotteries
- Certain charity raffles and prize competitions, if compliant with local laws
Casino games, sports betting (other than horse racing), poker, slot machines, and all other games of chance are banned.
Online gambling is also prohibited, with authorities actively blocking access to betting and casino websites.
Operating or participating in any unauthorized gambling activity, whether online or offline, is subject to fines and imprisonment.
Exceptions exist for tourist complexes regulated by provincial governments, but these are accessible exclusively to foreigners and not to Pakistani citizens or residents.

Advertising and Marketing Limitations

Advertising or promoting any form of gambling is strictly forbidden.
There are no legal avenues for gambling operators to market their services within Pakistan.
International online gambling operators are not permitted to target Pakistani residents through advertising or sponsorships.
Any public display, advertisement, or solicitation related to gambling may result in criminal penalties.
There are no responsible gambling messages or warnings required in advertising, as all forms of gambling promotion are illegal.

Responsible Gambling Requirements and Player Protection Measures

Pakistan does not have a legal framework for responsible gambling, self-exclusion, or player protection programs, as gambling is almost entirely prohibited.
There are no state-mandated resources for problem gambling or addiction support.
No requirements exist for gambling operators to provide information on responsible gambling or to implement player protection tools.
Government action is focused on enforcement and prohibition rather than harm reduction or player welfare.

Geographic and Location Restrictions

Gambling is banned throughout all provinces of Pakistan, both in public and private venues.
Physical gambling establishments, including casinos and betting shops, are illegal and subject to closure and criminal penalties.
Authorized horse racing betting is limited to specific, licensed clubs and is not available nationwide.
Tourist complexes with restricted gambling access are permitted only for foreigners and are regulated by provincial authorities; Pakistani nationals are not allowed to participate.
Online gambling websites are actively blocked by the Pakistan Telecommunication Authority, though some residents attempt to bypass these restrictions using VPNs.

Timeline

Year/Date	Event
1867	The Public Gambling Act is enacted in British India, establishing the first formal prohibition of gambling in the territories that would later become Pakistan.
1947	Pakistan gains independence; the Public Gambling Act of 1867 continues to apply as the foundational gambling law in the new state.
1956	Pakistan is declared an Islamic Republic, reinforcing the prohibition of gambling as a religious and legal principle.
1961	Provincial ordinances (e.g., Baluchistan, West Pakistan, Punjab, Sindh Prevention of Gambling Ordinances) are enacted to address gambling at the provincial level.
1977	The Prevention of Gambling Act is passed by the National Assembly, replacing previous laws and establishing a comprehensive federal ban on all forms of gambling except for certain exceptions (horse racing, some lotteries).
1978	Provincial versions of the Prevention of Gambling Act are implemented, further standardizing the prohibition across all provinces.
Late 1990s–2000s	Despite strict laws, illegal betting and underground gambling activities proliferate, especially in major cities.
2025	The Virtual Assets Bill is introduced in Parliament to regulate digital assets, potentially impacting future online gambling and cryptocurrency-based betting, but no direct changes to gambling laws are made.

Requirements

Software Certification and Technical Standards Requirements

There are currently no official technical standards or software certification requirements for gambling operators in Pakistan, as all forms of gambling (except limited exceptions such as horse racing and state lotteries) are prohibited under national law.
No regulatory authority exists to approve, certify, or audit gambling software or platforms for compliance within Pakistan.
International operators serving Pakistani users do so without local oversight, and any technical standards they follow are set by their home jurisdictions, not by Pakistan.

Data Protection, Privacy Measures, and Server Location Requirements

There are no formal data protection or privacy requirements specific to gambling operators in Pakistan, as the activity is illegal and unregulated at the national level.
No mandates exist regarding the location of servers (e.g., requirement to host data within Pakistan or in specific jurisdictions).
Operators providing services illegally to Pakistani residents may be subject to data protection laws in their own jurisdictions, but not to any Pakistani technical or operational requirements.

Anti-Money Laundering (AML) and Know Your Customer (KYC) Procedures

Pakistan does not have AML or KYC regulations specific to gambling operators, as such businesses are not legally recognized or licensed domestically.
International platforms may implement AML and KYC procedures in accordance with their own licensing jurisdictions, but there is no enforcement or technical standard imposed by Pakistani authorities.
No reporting obligations to Pakistani financial intelligence or law enforcement agencies exist for gambling operators, as their activities are not sanctioned.

Financial Reporting, Auditing Standards, and Record-Keeping Requirements

No financial reporting, auditing, or record-keeping standards are imposed on gambling operators by Pakistani law, due to the illegality of the sector.
Operators functioning offshore are not required to submit any operational or financial records to Pakistani authorities.
Any auditing or reporting obligations would be determined solely by the operator’s home jurisdiction, not by Pakistan.

Technical Implementation Requirements for Responsible Gambling Tools

There are no technical requirements or standards for responsible gambling tools (such as self-exclusion, deposit limits, or reality checks) mandated by Pakistani law.
No oversight or enforcement exists for the implementation of problem gambling prevention features for operators serving Pakistani residents.
Any responsible gambling measures are implemented at the discretion of the operator or as required by foreign regulators, not by Pakistani authorities.

Sources

Primary Regulatory Authorities

Ministry of Interior, Government of Pakistan - Main government authority overseeing law enforcement and regulatory matters, including gambling-related enforcement.
Pakistan Telecommunication Authority (PTA) - Official authority responsible for blocking access to illegal online gambling websites and enforcing internet regulations.
National Database and Registration Authority (NADRA) - Assists in identity verification for enforcement of gambling laws.

Contact Information for Primary Authorities

Ministry of Interior, Government of Pakistan Phone: +92-51-9206660 Email: info@moib.gov.pk
Pakistan Telecommunication Authority (PTA) Phone: +92-51-9225329 Email: info@pta.gov.pk