GAMBLING AND DIGITAL BETTING IN PAKISTAN: EMERGING RISKS OF ONLINE PLATFORMS

Abstract

Digital betting and online gambling are booming in Pakistan, and despite formal bans, the market has created an untamed market, which is rather high-risk. Legal loopholes contribute to this growth since the laws that have been in place are not applicable to the new online platforms. Therefore, many offshore betting platforms and applications will run unpunished and create drastic risks. They are rampant financial fraud, illegal transfer, and money laundering that destroy the economy of the country. On the social front, these sites have been associated with the increased rates of gambling addiction, especially among young people who are the victims of intense social media marketing. The users are also at risk of severe data security threats, such as identity theft and hacking of their privacy. As a crackdown is being undertaken by authorities, by blocking apps and going after promoters, it is almost impossible to enforce the use of digital wallets and cryptocurrency due to their anonymity. This online shadow economy is a complex risk to the financial stability and social welfare in Pakistan.