The current Malaysian gambling landscape is a complex one, as it is governed by both secular and religious laws. Given that the country is a predominantly Muslim nation, most of its laws are influenced by Islamic principles, which are adverse to gambling. However, gambling is allowed in the country, but not in all forms.
Citizens are allowed to play lotteries and make bets on horse racing at licensed facilities. Online gambling, however, is restricted. Even so, many people look for other ways to play through casino sites for Malaysians, which are designed specifically for local players. These sites let users enjoy different casino games, lower betting limits, crypto payments, and fast withdrawals. This way, Malaysian players get more freedom and choice when they choose to play.
What really makes the gambling landscape in Malaysia complex is that while the country runs one of the strictest gambling frameworks in the world, it has facilities that could support gambling and become a top destination for digital gambling in the near future. Looking at its current population and their activity on offshore casino sites, the country has the potential to be a leader in the global gambling market. However, the government is adamant on maintaining moral and social order through enforcement.
Existing Gambling Regulations in Malaysia
To have a better understanding of the gambling landscape in Malaysia, especially with regard to what is and isn’t legal, here’s a look at the existing gambling regulations.
Malaysia’s gambling framework is made up of both secular and religious laws. The Sharia law, for instance, prohibits Muslim citizens from participating in any form of gambling.
Other secular laws, such as the Lotteries Act (1952), Betting Act (1953), Common Gaming Houses Act (1953), and Racing Act (1961), also regulate the country’s gambling sector.
The Lotteries Act (1952) licenses and regulates legal lotteries, while the Betting Act (1953) prohibits all forms of online gambling in Malaysia, including sports betting. The Common Gaming Houses Act (1953) lists the requirements for getting a license and the penalties that come with operating an unlicensed gaming house or land-based casino. The Racing Act (1961), on the other hand, allows and regulates horse race betting.
Just recently, the Malaysian police proposed 12 amendments to the gambling laws in an effort to modernise the decades-old Acts. In 2023, there was a similar move from the Ministry of Finance. Such moves show that the country is beginning to acknowledge the changing nature of gambling and the need to keep its laws relevant in the digital age.
Agencies Responsible For Enforcing Gambling Laws
In Malaysia, the Royal Malaysia Police are responsible for investigating illegal gaming activities and carrying out raids on illegal gaming houses, while the Malaysian Communications and Multimedia Commission is responsible for monitoring and blocking access to illegal gambling websites. The Ministry of Finance oversees all legitimate gambling operations and issues licenses to casino and lottery operators.
The Rise of Online Casinos
Although the government hasn’t officially recognised online gambling, it has continued to grow rapidly as residents have found other ways to use mobile gambling platforms. Currently, there is only one legal land-based casino in Malaysia and a handful of licensed lotteries. However, with a young population who are interested in esports and casino-style games, Malaysia has a diverse user base that makes iGaming an attractive prospect.
Based on current estimates, the Malaysian Malaysian online casino gaming market revenue is expected to grow by 9.15% between now and 2031, reaching US$38 million (RM161 million) by 2030. As of 2021, the market had an estimated gross gaming revenue (GGR) of RM100 million (US$23.6 million), and by 2024, it had risen to RM228 million (US$54 million). (US$1 ≈ RM4.23)
Experts believe that the convenience and innovation that come with mobile gambling platforms have led to their continued rise in the country, and if the government can tap into this growing sector, it could gain a large share of the income that goes to illegal platforms.
Future Changes in Legislation
Given the current rise in online casinos, the government has recognised that the current laws don’t effectively address online gambling and is taking steps to make reforms. Lawmakers are creating new laws to regulate and license online gambling, while there are debates on whether or not to amend the Common Gaming Houses Act (1953) so it can cover online gambling.
The government is hoping that by expanding the current gambling formats and creating a new regulated framework, it can regain some of the tax revenue which has been lost to illegal gambling operators. If it succeeds in creating a new licensing network, it will expand the market, allowing for competition and innovation while boosting investor confidence in the market.
Conclusion
Malaysia’s iGaming market is a complex yet diverse one. Although it is governed by strict regulations, the market is made up of a tech-savvy and innovative customer base, making it a profitable place for digital gambling sectors to invest in.
The current legislations limit the market, as it promotes monopoly and makes it nearly impossible for operators and investors to test new features. If the government can make reforms to existing regulations and provide regulatory clarity, operators will know how to adapt to local gaming needs while successfully navigating the grey areas of the market.
