Pakistan currently has some of the strictest anti-gambling laws in the world, prohibiting all forms of gambling-related activities. However, the only exception to this is highly regulated betting on certain major horse races at just four Pakistan racetracks. Not even lotteries are permitted.
With the new 25% GST (Goods and Service Tax) recently implemented (October 1st, 2023) in India, is there anything Pakistan can learn from this? Live dive straight in to find out.
What is India’s new 28% tax ruling?
On October 1st, the Goods and Service Tax Council announced that a law had been passed, meaning all real money wagers placed at licensed iGaming sites, such as online casinos and sports betting sites, will now levy a 28% tax at full value (to be collected by the operator of each site).
The new legislation means there is no differentiation between games of skill and games of chance, and it was brought in to streamline the government’s tax collection.
Before the new ruling came into effect, operators of casino and sports betting apps in India paid an 18% GST to the Indian government, levied on the Gross Gaming Revenue (GGR).
Also deducted from the winnings is a 30% tax known as Tax Deducted at Source (TDS). Based on the amount a player deposits into their account to play real money gambles of skill and games of chance, they will now have to cough up 28% of that deposit on top of the 30% TDS on net winnings.
Some have said that this will lead to a rise in Indians moving away from these sites to play at offshore controlled/licensed sites that don’t impose such a harsh tax on winnings.
However, these sites will be blocked, meaning people living in India will eventually be unable to access any offshore iGaming sites that fall outside of Indian jurisdiction.
While some have welcomed the new legislation, others have said it could mark the end of the iGaming industry in India, and that it’s a major setback for players. The new 28% GST will also majorly impact the iGaming businesses.
Some have said that investing in new games will now be too expensive, and they will find it harder to expand their operations, stating a huge decrease in revenue is likely. It could also lead to huge job losses.
How can Pakistan learn from India’s new 28% GST?
The iGaming industry in Pakistan is currently like the Wild West, as the industry is basically non-existent.
If players living in Pakistan want to place a wager on cricket or any other sport or play hundreds of online slot machines or traditional table & card games like craps, blackjack, baccarat, roulette, or poker, they are forced to play at offshore iGaming sites controlled by foreign operators.
If the Pakistani government were to ban access to foreign-controlled iGaming sites and come up with a legal framework and fully regulated iGaming landscape of its own, it could create a much-needed new revenue stream. However, for the most part, many forms of gambling are still frowned upon in Pakistan.
If the government allowed them to play at a handful of Pakistan-licensed iGaming sites, they would also have to ensure the tax they impose on players isn’t as drastic as the amount India has just introduced. Taxing them so much could force them to play at offshore sites, where the government would earn zero revenue.
What kind of iGaming sites can I sign up to if I live in Pakistan?
The main types of iGaming sites people living in Pakistan can sign up to in 2023 are sports betting sites and online casinos. Many sites have both products under one roof, and they are known as online sports betting casinos or online casino sports betting sites.
Websites like TheTopBookies have a list of over ten trusted iGaming sites that players from Pakistan and India can sign up to from any Wi-Fi/internet-connected smartphone, laptop, desktop computer or tablet.
Examples include the following:
- 1XBet
- MegaPari
- PariMatch
- 10CRIC
- BetTilt
- 1Win
- LopeBet
- SatBet
- BC.Game
- Sportsbet.io
These sites are free to sign up to and have a welcome bonus for all new players. Secure links to each site’s official sign-up page can be found inside each review at TheTopBookies.
They accept several tried and tested online payment methods (e.g., prepaid cards, e-wallets, bank transfers, credit & debit cards, and cryptocurrencies, and welcome multiple fiat currencies (e.g., Indian Rupee, US, Canadian, New Zealand, and Australian dollars, Pound Sterling, and Euros).
The websites are protected by SSL (Secure Socket Layer) encryption technology. Reputable operators control them, and they are licensed by some of the world’s leading online gambling licensing authorities. In short, they are the most trusted sites people living in India and Pakistan have access to in 2023.