This is likely the question that concerns you most. Is your gambling activity legal? We believe we should be candid with each other that online gambling, sports betting (at bookmakers), and online casinos are all illegal in this country. This means that any actions you take on online casino platforms violate the law. However, you can refer to the information below to gain detailed insights into this environment.
Legislation on Online Gambling in Malaysia
First, let’s talk about the gambling landscape in Malaysia. This country, with a population of approximately 35 million, currently operates the 33rd largest economy globally and ranks 11th in Asia. However, the average income of Malaysians is around 12,000 USD, indicating a strong market purchasing power. As a result, the demand for entertainment here is more diverse than ever. Setting aside cultural and religious factors, the younger generation in Malaysia constantly seeks something new and genuinely exciting.
Gambling and betting are often associated with negativity, but in reality, many countries view it as a business with countless benefits. Perhaps Malaysia, too, will soon recognize this industry and manage it alongside other regulated sectors. Here are the three foundational laws that determine the viability of gambling and betting businesses in Malaysia.
Betting Act 1953
The Betting Act of 1953 is a British law regulating betting and gambling activities. This law was created to manage activities like horse racing, lotteries, and traditional football betting, all of which are legal. The British government recognized the economic potential of this industry, choosing not to ban it but to regulate it strictly. Additionally, in the homeland of football, sports betting has been leveraged as a branding tool for the nation.
And did you know? Certain forms of gambling, such as lotteries, casino games, and horse racing, are legal under Malaysia’s 1953 Common Gaming Houses Act. This shows that the Malaysian government has never outright banned betting or gambling; they only prohibit uncontrollable actions.
Common Gaming Houses Act 1953
Another law, known as the Akta Rumah Judi Terbuka, was enacted in 1953 in this multicultural country. It comprises 28 sections and 3 schedules (including 12 amendments). This law helps business owners and players identify that public gaming houses, public games, and public lotteries are illegal. Through this, we can understand which activities are prohibited.
Sharia Law
This is a comprehensive legal system that addresses many societal issues, originating from Islamic law based on the Quran, Hadith (the sayings of Prophet Muhammad), and other Islamic texts. If you are not Muslim, you may disregard this part. Otherwise, carefully consider every gambling-related action. We respect all beliefs. Sharia Law takes a clear stance against gambling and betting, viewing them as haram (forbidden) activities. Religious texts: The Quran explicitly prohibits gambling, considering it an act that leads to sin and hatred among people. Verses like Surah Al-Ma’idah (5:90) condemn intoxicants and games of chance.
What is the Current Malaysian Government Stance on Online Gambling?
Gambling regulations in Malaysia have long been shaped by the country’s cultural and religious values, resulting in a highly restricted environment for most forms of gambling. Although some physical gambling establishments are permitted, the online gambling sector is still widely restricted. However, as digital trends transform the global gaming industry, Malaysian authorities are increasingly discussing the possibility of regulating online gambling to some extent. This article delves into Malaysia’s current stance on online gambling, compares it with legal physical gambling, and offers guidance on staying safe in the online gambling space.
Currently, online gambling is illegal in Malaysia under the Common Gaming Houses Act of 1953. This legislation prohibits operating or participating in online gambling activities within the country. Efforts are frequently made by Malaysian authorities to block access to online casino websites and combat illegal online gambling networks. Enforcement has intensified in recent years, especially with the rise in internet access and mobile gaming.
Despite its illegal status, there have been recent discussions about introducing a regulated framework for online gambling. Some officials believe that legalizing and licensing online gambling could generate significant tax revenue and allow for better control of gambling activities. However, no concrete legislation has yet been enacted, and any such steps would require careful consideration of the country’s moral and cultural values. The government is reportedly reviewing various regulatory options to ensure player safety and legal clarity.
What are the Differences Between Legal Physical Gambling and Online Gambling?
| Aspect | Legal Physical Gambling | Online Gambling |
|---|---|---|
| Legality | Permitted in licensed casinos and gaming centers, subject to strict regulations | Prohibited under the Common Gaming Houses Act 1953 and the Betting Act 1953, with some exceptions for online sports betting |
| Convenience | Limited to licensed premises, with age and dress code restrictions | Can be accessed from anywhere with an internet connection, 24/7 |
| Games | Traditional games such as baccarat, blackjack, roulette, and slot machines | A wide variety of games, including traditional and modern online games such as esports, poker, and slot machines |
| Gaming Environment | Live gaming environment, interacting with other players and staff | Virtual gaming environment, interacting with computers and other technologies |
| Taxation | Subject to taxes and fees, such as Casino Duty and Gaming Tax | No taxes are paid, resulting in lost revenue for the government |
| Impact on the Physical Environment | Creates jobs and contributes to the local economy | No significant impact on the physical environment |
| Payment Options | Limited payment options, focusing on cash and credit/debit cards | Offers a wide range of payment options, including e-wallets and cryptocurrencies |
How Do International Online Casinos Operate in Malaysia?
Operating an online casino in Malaysia can be a complex matter due to the strict regulations governing gambling activities in the country. Here’s an overview of how international online casinos typically operate in Malaysia and how they target Malaysian users:
Operation Overview
- International online casinos that target Malaysian users typically operate from offshore locations where online gambling is legal.
- These platforms often offer a wide range of casino games, including slots, table games, and live dealer games.
- They may provide localized services, such as accepting Malaysian Ringgit (MYR) and offering customer support in languages spoken in Malaysia.
Targeting Malaysian Users
- Online casinos may target Malaysian users through targeted marketing campaigns, social media promotions, and partnerships with local influencers.
- Some platforms may also offer bonuses and promotions specifically tailored to Malaysian players to attract and retain them.
Use of Offshore Licensing and Accessibility
- Many international online casinos operating in Malaysia obtain offshore licenses from jurisdictions like Malta, Gibraltar, or Curacao to establish credibility and legitimacy.
- Malaysian players often access these online casinos through VPNs (Virtual Private Networks) to bypass local restrictions on gambling websites.
- Alternatively, online casinos may provide alternative links or mirror sites that Malaysian players can use to access their services.
What are the Risks of Playing in an Unlicensed Online Casino in Malaysia?
Below here are some problems you need to know and consider when you decision play in the online casino space.
- Lack of consumer protections: Players may not have recourse in case of disputes or unfair practices.
- Risk of fraud: Unlicensed casinos may engage in fraudulent activities, such as rigging games or withholding winnings.
- Personal data vulnerability: Players risk their personal and financial information being compromised.
- Legal consequences: Playing in unlicensed online casinos in Malaysia is illegal and can lead to legal repercussions for players.
How to Keep Yourself Safe While Playing in Online Casinos?
4 things to remember and remind yourself
- Identify licensed casinos: Look for valid gaming licenses from reputable jurisdictions.
- Use secure payment methods: Opt for trusted payment options to safeguard your financial transactions.
- Avoid scams: Be cautious of offers that seem too good to be true and research casinos before signing up.
- Practice responsible gambling: Set limits on your playing time and budget, and utilize resources for self-exclusion if needed.
