A significant crackdown has been initiated against more than 150 surrogate betting companies that have been operating in Pakistan. These companies have been causing substantial economic losses to the country, amounting to billions of dollars, by transferring substantial amounts of money to what are described as “hostile” countries.
The primary mode of operation for these companies is to facilitate and promote gambling and betting activities, primarily focused on sports such as cricket, through online websites and mobile applications accessible within Pakistan.
Minister for Information and Broadcasting Murtaza Solangi disclosed that all relevant institutions, including the military establishment, are working in coordination to eliminate these betting companies. The operations of these companies have been normalizing gambling and betting practices within Pakistan and have been exacerbating the economic challenges by transferring large amounts of untaxed money abroad, primarily in dollars, to countries labeled as “hostile” in a notification issued by the Ministry of Information and Broadcasting.
According to Minister Solangi, all government institutions are united in their efforts to shut down these betting and gambling companies that have been operating in Pakistan for the past three years. He stressed that this illegal activity has cost Pakistan’s economy billions of dollars.
When asked if the untaxed money was primarily landing in India, Minister Murtaza did not confirm or deny the statement, but credible sources have suggested that a significant portion of the funds went to India.
The crackdown has also extended to various entities in Pakistan, including the Pakistan Cricket Board, Pakistan Super League, franchises, club cricket, private leagues, media organizations, and advertising platforms. They have been strictly advised against engaging in any agreements or business relations with these surrogate companies or promoting them through advertisements.
The information ministry issued a notification on September 25 with the subject “Zero Tolerance for Surrogate Companies,” further advising the termination of existing agreements with such entities.
The official notification underscores that foreign betting and gambling companies, among others, are attempting to introduce corruption into Pakistan’s sports teams and are contributing to economic harm by moving untaxed money out of the country in dollars. An anonymous government source has indicated that many of these companies are operating from India.
