The legality of online gambling in Malaysia tends to be somewhat unclear across various sectors. With regulated forms of gambling being available, such as land-based casinos and lotteries, online gambling largely remains unregulated and technically illegal. Contrarily, there is a flourishing heavy presence of online gambling happening in Malaysia despite it being illegal.
Gambling acts
As part of Malaysia’s legal framework, its Betting Act of 1953 prohibits most forms of gambling unless specifically licensed by the government. The most recent amendment to the Betting Act was completed in 2006.
The Lotteries Act of 1952 allows for the operation of lotteries under government oversight. However, it does not accommodate online platforms. Malaysia is a predominantly Muslim country, and its laws also reflect its Islamic principle, which prohibits gambling for Muslims. Rounding off the acts is Sharia Law, which prohibits gambling for Muslims while allowing non-Muslims to indulge in certain forms of legal gambling.
However, despite these prohibitions, online betting is still highly practised in Malaysia via international platforms accepting Malaysian players. Football sports betting is a popular growing trend on which local and international league competitions are heavily waged. Live betting is also an emerging and evolving trend that is gaining popularity there.
Crackdown on illegal gambling activities
As much as players in Malaysia are not feeling the legal consequences of indulging in illegal online gambling, there are still risks involved, which can include potential legal action for the banks and internet cafes that facilitate these activities. Because of its illegality, most Malaysian banks block transactions to these gambling sites, forcing the players to use e-wallets or virtual cards to deposit their funds.
Recently, there has been a call by the Sabah PKR to advocate for more robust measures to address the escalating online gambling issue, which has extended to towns and remote villages across the state.
In a recent joint operation, the police and Sabah Electricity disconnected power to 17 suspected gambling premises in Penampang. In a press conference, PKR’s information chief, Razeef Rakimin, praised these recent joint operations, stating, “This action shows the authorities are serious, but more needs to be done to eliminate these illegal operations.”
Razeef went on to state that gambling outlets are now operating out of small stalls and convenience stores, creating further complications for enforcement. “Even in remote areas, we see gambling activities flourishing.”
Razeef emphasized the importance of the local communities reporting such activities and urged their cooperation in the matter.
“If reports are made but no action is taken, inform us, and we will escalate the matter,” he said.
Gaming Law deliberations by the government
Earlier this year, in response to a question with notice in parliament on May 24, Malaysia’s Prime Minister Anwar Ibrahim confirmed the government is reviewing four laws related to gambling to update the regulation of land-based and online segments.
Ibrahim stated that he hoped that amending the laws would allow the government to “enforce and regulate licensed gambling activities and online gambling more comprehensively.”
His statement noted that the review will cover the Common Gaming Houses Act 1953, the Pool Betting Act 1967, the Lotteries Act 1952 and the Betting Act 1953, all of which lag in technological and market transformation.
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