The Pakistani government has initiated a significant crackdown on more than 150 surrogate betting companies that have been operating within the country. These operations, which involve betting and gambling on sports, with cricket being a primary focus, are conducted through online websites and mobile applications accessible in Pakistan. The Ministry of Information and Broadcasting released a notification highlighting the detrimental impact of these companies on Pakistan’s economy.
Normalization of Gambling Practices
These surrogate betting companies have played a role in normalizing gambling and betting practices within the country. Furthermore, they have been causing economic turmoil by transferring substantial amounts of untaxed money abroad, primarily in dollars, to what is described as ‘hostile’ countries. The crackdown, supported by all government institutions and in collaboration with the military establishment, seeks to address this critical issue.
Billions in Economic Loss
Minister for Information and Broadcasting Murtaza Solangi expressed the magnitude of the issue, revealing that these surrogate betting companies have cost Pakistan’s economy billions of dollars. While there are indications that a significant portion of these untaxed funds may land in India, official confirmation on this matter is yet to be provided. The government has taken a firm stance on this matter, emphasizing “Zero Tolerance for Surrogate Companies.”
Immediate Actions and Precautions
To address this concern, notifications have been issued to various entities within Pakistan, including the Pakistan Cricket Board, Pakistan Super League, its franchises, club cricket, private leagues, TV channels, radio newspapers, periodicals, internet portals, broadcasters, and other media/advertising channels. These entities are strongly advised against entering into agreements or business relations with surrogate companies or promoting them through any form of advertisement. Additionally, the notification advises the immediate termination of all existing agreements with such companies.
Foreign Involvement and Corruption Concerns
The official notification highlights the involvement of foreign betting and gambling companies, along with other actors, who are attempting to introduce corruption within Pakistan’s sports teams. This is seen as a potential threat to the country’s economy, as untaxed money is funneled out of Pakistan in dollars. It is noted that many of these surrogate betting companies are believed to be operating from India. The collaborative crackdown aims to curb these practices and safeguard Pakistan’s economic interests.
