Is Online Gambling in Malaysia Legal? A Comprehensive Guide

This is the moment. You’ve been doing your homework about online casino games and putting in the time to master playing against advanced AI. You’ve been climbing the ranks and now you’re ready to join the big boys at the cash tables. Time to put your money where your mouth is. The flashing lights are calling! You are destined for greatness!

But wait. Before you do that, did you take a minute to think about whether online gambling in Malaysia is even legal?

This is the million dollar question that inevitably crosses every online casino player’s mind and more than likely, their browsers as well in search for the answer. So, we attempt to address all the various assumptions you may have and summarise for you the ins and outs of the legalities about online gambling in Malaysia so that you don’t have to leaf through any dusty law books.

Answering your questions about the legality of online gambling in Malaysia

Of course it’s legal, right? Gambling is!

Indeed gambling is truly alive and well in Malaysia. There are various legal forms of gambling that are allowed in the country and beloved by the people. These are the types regulated through permits granted by the Betting Control Unit of the Ministry of Finance:

• Betting on horse races

There are three racecourses in the country, all privately owned, and subject to the Racing Act 1961.

• Lottery

There are six lotteries in Malaysia, all of which are privately owned, controlled under the Lotteries Act 1952.

• Casino games

The privately-owned Genting Casino has been the only licensed land-based gambling casino in Malaysia since 1971.

Besides those, who can forget playing mahjong with the aunties and uncles around the kitchen table at a family gathering with a little wager to keep things interesting. For many people, it’s a common rite of passage, ingrained within the heritage and memories of Malaysians.

So since gambling is legal in Malaysia, many people find it reasonable to assume online gambling must be legal too. However, it’s not that simple. For example, sports betting is extremely popular among Malaysians, especially on football and badminton matches. However, sports betting is actually prohibited under Malaysian law. Even lucky draws for marketing efforts must be careful in Malaysia as those are also regulated and must be licensed by the Ministry of Finance.

It’s legal for non-Muslims and people over 21 to gamble, right?

Yes, there is no prohibition for non-Muslim citizens of legal age to gamble in Malaysia. If you do not commit the following, you are not in breach of gambling laws:

• Be Muslim
• Be under 21 years of age
• Gamble in a public place
• Gamble at an unauthorized betting house
• Gamble online

It actually should come as no surprise that online gambling in Malaysia is heavily constrained. News about online gambling syndicates, illegal betting houses and call centres in Malaysia being raided and gambling websites being blocked by the MCMC (Malaysian Communications and Multimedia Commission, the regulatory body that governs online communications) frequently adorn the headlines.

The 3 major laws that govern gambling activities in Malaysia forbid online gambling:

• Common Gaming Houses Act 1953, also known as CGHA or Act 289

The Act defines gambling as “the playing of any game of chance or of mixed chance and skill for money or money’s worth.” This encompasses physical and virtual games, including online gambling. Even a premise that provides computer equipment for online gambling is considered a “common gaming house”, even if the premise does not have physical gambling game equipment.

• Betting Act of 1953

This act prohibits most forms of gambling except at a company licensed to operate. This includes transmitting bets between customers and betting houses online.

• Syariah law

All Muslims in the country are banned from participating in all forms of betting, including online gambling.

In other words, online gamblers in Malaysia are potentially vulnerable to the inherent risks in the system. So, do your due diligence to keep up with the regulations and game responsibly with only legal licensed sites for your online gambling fun.

Surely Genting Casino can be licensed to offer online gambling?

Ah, the fabled Genting Casino. Every young visitor that has stepped foot at Resorts World Genting, located in Genting Highlands, surely has been curiously trying to peek into the forbidden place where only adults can go. This prominent casino is open 24 hours a day, attracting millions of high-rollers and good-time gamblers every year from across the globe.

In actuality, Genting Casino does have the capability to run online casinos and virtual sportsbooks. However, due to the gap in legislation for online gambling, they do not operate an online casino in Malaysia and have made statements that they are not affiliated with any online gambling platforms.

Online gambling will bring in lots of revenue. Why wouldn’t it be legal?

The Communications and Multimedia Ministry actually estimated that the country could increase its tax revenue by RM2 billion from online gambling.

Therefore, it’s quite a shame that due to the non-existence of online casino licensing in the country, Malaysia’s very own homegrown casino brand, Genting Casino can only offer their online gambling services in Alderney, UK. This is why there are calls to liberalise and tightly regulate the industry.

Considering great potential earnings from “gacha” or “loot box” mechanics that are growing in popularity, the Communications and Multimedia Deputy Minister stated that the Malaysian government is considering licensing online games with “betting” and “gift offers” elements. So there is light, and hopefully a pot of gold, at the end of the tunnel.

It’s the 21st century. Shouldn’t they get with the times?

You’re absolutely right! In fact, the courts agree with you.

The High Court suggested that under the CGHA, there is no explicit provision in the law that regulates online gambling and courts cannot not fill in the blanks until legislators do so.

Even the government agrees.

The laws have been described as “archaic” as well as “outdated” and there is a big push to renew them in order to keep pace with technological advancements. An overhaul is long overdue after 70 years without an update since the initial laws about gambling were drafted before the digital age of computers and the Internet. However, according to the Prime Minister’s Department, ministers have not been empowered to amend the law on this matter no matter how much they speak out about it. So, review of these antiquated laws have been stagnant.

In May 2023, the Malaysian Prime Minister announced that these legislation are under review:

• Betting Act 1953.2
• Common Gaming Houses Act 1953
• Lotteries Act 1952
• Pool Betting Act 1967

Concluding the answer

In short, online gambling in Malaysia exists in a legislative grey area and its progress is mired by negative public perception. The relevant laws as they currently exist are not equipped with the comprehensive framework needed to effectively regulate it in Malaysia. Despite this, Malaysians can easily access many offshore online casinos.

The authorities will have to follow in the footsteps of other gambling governing bodies to put into place measures, such as legislation, financial policies, licensing systems, and independent audits, to create a robust ecosystem for online gambling. Then, casinos in Malaysia will finally get the opportunity to expand and flourish online in their beautiful home country.