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Why Regulating iGaming Could Benefit Pakistan: Expert Insights with Royal x Casino as a Case Study

Nov 25, 2025

From Grey Market to Growth Engine: Why Pakistan Should Re-Evaluate iGaming Regulation

A Silent Industry Pakistan Can No Longer Ignore

Across the world, iGaming has rapidly evolved into a high-growth digital industry—one that produces billions in revenue, generates professional jobs, and strengthens financial transparency through modern compliance tools.

In Pakistan, however, the sector remains largely underground, shaped by outdated legal frameworks and offshore platforms operating without oversight.

Yet, a growing number of policy analysts and economic experts argue that responsible iGaming regulation—combined with strict licensing, taxation, and consumer-protection rules—could unlock meaningful benefits for the country.

Platforms such as Royal x Casino, which already emphasize fair-play systems and security-driven user experiences, provide a practical reference example of what a compliant digital gaming ecosystem could look like in Pakistan.

This article presents a data-driven, expert-level analysis of how regulated iGaming could help Pakistan capture tax revenue, attract digital investment, create jobs, and reduce financial crime risks—while protecting consumers far more effectively than the current grey-market environment.

1. The Current Reality: Pakistan’s iGaming Market Exists in a Legal Vacuum

Pakistan’s primary gambling laws were created decades ago, long before the rise of smartphones, digital wallets, and internet-enabled gaming. As a result:

• Online gambling is not clearly defined in legislation

This legal gap pushes most activity into offshore platforms and unmonitored payment routes.

• Enforcement struggles to keep pace with VPNs and cryptocurrency

Even when websites are blocked, users often access alternative routes.

• The government receives zero tax revenue

All revenue generated by Pakistani users flows entirely to foreign operators.

• Consumers remain unprotected

Without licensing bodies, players have no structured system for dispute resolution, game fairness audits, or financial safeguards.

This grey-market environment is not simply inefficient—it also creates financial-crime vulnerabilities. International organizations such as the UN Office on Drugs and Crime (UNODC) have repeatedly warned that unregulated online gambling environments often become blind spots for money laundering, underground banking, and cross-border fraud.

2. The Global Data: Why Countries Are Embracing Regulated iGaming

The international iGaming industry has grown at a scale that governments can no longer ignore:

Global online gambling revenue in 2024: approx. USD 78.66 billion
Projected revenue by 2030: approx. USD 153.56 billion
Compound annual growth rate (CAGR): about 11.9%

Countries such as the UK, Italy, Philippines, Malta, and several U.S. states have showcased the benefits of a regulated system:

Measured Benefits in Regulated Markets

High tax contributions
Tens of thousands of direct and indirect jobs
Strong consumer-protection frameworks
Effective AML (Anti-Money-Laundering) monitoring
Safe digital entertainment ecosystems

These examples demonstrate a universal principle:
The question is never “Should iGaming exist?” — it already does. The question is whether a country chooses to regulate and benefit from it.

3. Pakistan’s Potential: A Data-Driven Revenue & Jobs Forecast

Using global benchmarks and Pakistan’s economic indicators, we can create a realistic model of what regulated iGaming could generate.

Economic Reference Points

Pakistan’s nominal GDP (2024): approx. USD 373 billion
iGaming penetration rate assumption: 0.2%–0.5% of global online gambling revenue (A conservative assumption reflecting cultural, legal, and market factors.)

Estimated Domestic Market Size (3–5 years post-regulation)

0.2% share: USD 157 million annual market
0.5% share: USD 393 million annual market

Projected Tax Revenue (based on 10–20% GGR taxation)

Low scenario: USD 15.7M–31.4M per year
High scenario: USD 39.3M–78.6M per year

Even in a conservative model, Pakistan could unlock:

New tax revenue streams
New digital employment sectors
New licensing income
Better oversight over cross-border cash flows

For a government facing fiscal pressure and high unemployment among youth, these numbers represent more than revenue—they represent structural digital-economy opportunities.

4. Royal x Casino as an Industry Case Study: What a Regulated Operator Looks Like

While the regulatory environment is still uncertain, platforms like Royal x Casino already provide a relevant example of:

• Responsible product design

Fair-play systems, RNG-audited games, and transparent payout structures.

• Consumer-first entertainment

User-friendly interfaces, support teams, and real-money game modes designed around responsible gaming controls.

• Anti-fraud and security systems

Modern platforms integrate ID verification, activity monitoring, and data-security tools—technologies that align naturally with regulated standards.

• High-quality content portfolio

Royal x Casino’s selection of Pakistan-friendly real money games—such as slots, Plinko, Ludo, crash games, mines, card games, and more—illustrates how a regulated operator could offer safe, enjoyable, and well-monitored entertainment experiences.

A regulated system would allow platforms like Royal x Casino to operate within the law, meet strict compliance requirements, and contribute directly to Pakistan’s economy rather than operating offshore.

5. How Regulation Would Work: A Practical Framework for Pakistan

Below is a simplified but expert-aligned regulatory blueprint tailored for Pakistan’s economic, legal, and cultural context.

A. Licensing System with Tiered Structure

Introduce categories such as:

Skill-based games
RNG games
Live dealer content
Sports betting (optional future phase)

Licensing fees can provide a predictable revenue stream while controlling market entry.

B. Taxation Balanced Enough to Prevent Black-Market Migration

Countries with overly high taxes see players move to illegal platforms.

Pakistan can adopt:

10–20% GGR tax
Annual license renewal fees
Withholding tax on high-value winnings

C. Mandatory AML & KYC Requirements

Regulation should obligate operators to:

Verify user identity
Monitor suspicious patterns
Report suspicious transactions
Maintain fully traceable digital transactions

This directly supports Pakistan’s efforts to strengthen FATF-aligned frameworks.

D. Direct Consumer Protection Measures

To reduce societal risks:

Deposit limits
Loss-control notifications
Time-out and self-exclusion tools
Proactive monitoring of high-risk behavior

E. Transparent Public Reporting

Regulators can publish quarterly reports covering:

GGR
Player protection metrics
Compliance cases
Market insights

This reinforces accountability and improves public trust.

6. Expert & Institutional Opinions: Why the Debate Is Changing

A wide range of global institutions emphasize the need to regulate rather than ignore iGaming.

Quotations (Paraphrased for Compliance & Clarity)

UNODC:

“Unregulated online casinos, crypto-based payment channels, and digital gaming ecosystems pose high risks for cross-border money laundering.”

IMF Governance Reports:

“Strengthening tax collection, tightening compliance frameworks, and formalizing digital financial channels are essential for economic resilience.”

These viewpoints align directly with what regulated iGaming would require:
structured taxation, strong AML systems, and transparent digital finance.

7. Final Assessment: Why Pakistan Should Consider a Controlled, Expert-Led Approach

Pakistan does not need to open the floodgates.

It needs a phased, controlled, and compliance-driven regulatory strategy that turns a largely invisible underground activity into a transparent, taxable, safe digital industry.

If Pakistan regulates iGaming wisely, it can expect:

Stable tax revenue
New digital job creation
Reduced illegal financial activity
Better consumer protection
Higher confidence in digital payments and fintech
A modern, globally aligned entertainment industry

Platforms such as Royal x Casino demonstrate what a compliant, secure, and consumer-friendly operator could look like under a future regulated ecosystem.

Regulation is not about promoting gambling—
it is about transforming an unmonitored reality into a safe, supervised digital asset.