Malaysia’s Online Gambling Surge Prompts Legal Review and Enforcement

Malaysia is grappling with a surge in online gambling, prompting the government to revisit its outdated gambling laws and intensify enforcement against illegal operations. While regulated gambling exists, including land-based casinos and lotteries, online gambling remains largely unregulated and technically illegal. Despite these restrictions, the popularity of online betting continues to grow, fueled by international platforms and casinos catering to Malaysian players.

Prime Minister Anwar Ibrahim recently confirmed the government is reviewing four major gambling-related laws:

• Betting Act 1953
• Pool Betting Act 1967
• Lotteries Act 1952
• Common Gaming Houses Act 1953

These laws, last amended in 2001, lag behind technological advancements and the rise of online platforms. The Prime Minister emphasized the need for updated regulations to “enforce and regulate licensed gambling activities and online gambling more comprehensively.”

Football betting and live betting are increasingly popular, with Malaysian players engaging heavily on both local and international platforms. However, online gambling’s illegality means Malaysian banks block transactions to these sites, pushing users towards e-wallets and virtual cards.

Local authorities have also raised concerns about gambling activities extending to rural areas. Sabah PKR’s information chief, Razeef Rakimin, called for stricter enforcement, noting illegal operations now often operate from small stalls and convenience stores. Joint operations in Sabah recently disconnected power to 17 suspected gambling premises, signaling more robust measures are underway.

The Malaysian Communications and Multimedia Commission (MCMC) has requested the removal of over 249,000 gambling-related posts from Facebook in 2024, highlighting the scale of the issue. Law enforcement continues to crack down on illegal gambling hubs, but Razeef emphasized the need for community cooperation, urging residents to report suspicious activities.

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With the government’s review of gambling laws, Malaysia could see a more modernized approach to regulating both land-based and online gambling. By addressing the growing online gambling trend and enhancing enforcement, Malaysia aims to balance economic growth from the gaming sector with community protections and legal compliance.

Sources:

Online Gambling Growth in Malaysia, SiGMA, November 2024.