Is Online Casino Legal In Malaysia

13-05-2021
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Malaysia

Although the legal gambling age in Malaysia is 21, many online casinos welcome players who are at least 18 years old. No matter where you play, be prepared to provide identification upon request. How are online casino sites regulated? Malaysia gambling sites are generally located overseas and outside of the Malaysian government's jurisdiction.

It can sometimes be a little tough to get your head around exactly what the legal situation regarding gambling is in any given country and Malaysia is no different.

Online betting in Malaysia is straightforward so check out the key facts about the current legal situation below. Where possible we’ll also suggest Malaysia friendly betting sites where you can open a betting account if living in the region.

Malaysia Betting Sites: Top Asian Bookie

T&C’s apply – 18+

Key Facts: Online Gambling In Malaysia

  • Betting Act (1953) states any gambling licenced and approved by government is legal.
  • One large land based casino, horse race betting and lotteries all legal.
  • Banks and internet cafe owners can be punished for facilitating online gambling.
  • As yet players have not been punished for online gambling.
  • Players from Malaysia should use an e-wallet to hide their online gaming transactions.

Gambling Law & Legislation Timeline

The above key points should give a good overview of the general situation regarding gambling in Malaysia. For a more in-depth explanation, however, we also include the below timeline of the country’s major gambling legislation:

Malaysia Casino Online Gambling

1952 – Lotteries Act

The 1952 Lotteries Act allowed for the legal operation of lotteries in Malaysia under the authority of the Social and Welfare Services Lotteries Board. Originally all legal lotteries in Malaysia were government run but the three currently existing providers have been privately owned since 1985.

1953 – Betting Act

Malaysia’s Betting Act of 1953 is the single most important piece of legislation when it comes to gambling within the country. This act was most recently amended in 2006 and essentially makes all gambling illegal by stipulating that:

any person who bets or wagers in a common betting house, or with a bookmaker on any premises or by any means, shall be guilty of an offence.

The act does also state, however, that this does not apply to any approved or licensed gambling activities – which at the time would have meant lotteries due to the act passed the previous year.

1953 – Common Gaming House Act

As a complement to the aforementioned exception included within the Betting Act, the Common Gaming House Act was also passed in 1953. This act meant that:

the Minister of Finance may, in his discretion, by licence authorize a company registered under the Companies Act…to promote and organize gaming.

It was this, therefore, which allowed the Malaysian government to authorise construction and operation of the nation’s single large casino at ‘Resorts World Genting’ in the Titiwangsa Mountains between the states of Pahang and Selangor.

1961 – Racing (Totalizator Board) Act

As a means of legalising another form of gambling which had been prohibited since 1953, the Racing (Totalizator Board) Act was passed in 1961. This act made pari-mutuel horse racing betting legal as long as it was undertaken at the country’s race courses themselves.

1996 – Penang’s Syriah Criminal Offences Enactment of 1996

Each of Malaysia’s 13 different states has passed its own legislation relating to what constitute specific crimes under Islamic Sharia Law for their Muslim population. These laws do not apply to the non-ethnic Malay population but do set down the potential punishment for any Muslims found to be gambling. These punishments can differ from state to state but are typically quite harsh.

2010 – Change of Mind?

In 2010, a company named Ascot Sports Sdn Bhd was widely expected to be granted Malaysia’s first licence for online sports betting. There were soon protests from the country’s Muslim community, however, and the licence never materialised, with the government claiming that it was never going to be granted in the first place. In spite of this, there does remain a significant sector of Malaysian society which supports the legalisation of sports betting.

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Do Players Get Taxed On Winnings?

Providers of legal and licensed gambling in Malaysia, such as the lottery operators and the company owning the nation’s one casino, are subject to payment of a number of different types of tax. These include a so-called ‘Goods and Services Tax’, a ‘Gaming Tax’ and a ‘Betting and Sweepstakes Duty’.

Punters who take advantage of those legal forms of gambling, however, are fortunately not charged any tax at all on winnings. With online gambling being illegal in Malaysia, too, there is no mechanism by which the state could charge tax on that activity.

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Online Deposit Options & Methods

There are no two ways about it; online gambling is illegal in Malaysia. Many citizens, however, do still do it and a number of notable overseas based online gambling providers do cater for Malaysian customers. Those Malaysian punters who do use overseas based sites to gamble, however, often find their options for depositing money quite limited.

Malaysian banks, for instance, routinely block bank transfers and debit or credit card deposits to gambling sites and many UK based bookmakers also do not accept card payments from Malaysian accounts. In order to circumvent these problems, punters often use e-wallet services such as Skrill in order to deposit or set up an account through Entropay in order to garner a virtual Visa card.

With more than 30 million population, Malaysia is one of the most developed countries amongst South East Asia countries given its abundant natural resources such as petroleum, aluminium, etc. There are different ethnic groups living together in the country, mainly Malay, Chinese, and Indian. Malay constitutes about 70% of the population in Malaysia which makes Malaysia a Muslim country. As such, gambling activities are generally prohibited under the Islam principles.

The Local Gambling Industry

Genting Highlands is an integrated resort and hotel operator which also represent an iconic attraction that has gathered millions of visitors and tourists to Malaysia on an annual basis. Genting Highlands is the only licensed casino operator in Malaysia. Other gaming operators include Magnum, Berjaya Toto, etc. that are only involved in the number forecast operator (“NFO”) industry, which is considered bringing the smallest impact to the local society as bet per number is typically much smaller than betting turnover in a physical casino. As a result, thousands of illegal gambling dens are being operated in Malaysia to provide an alternative to the local gamblers.

Malaysian Government’s Efforts to Fight Against Illegal Gambling Activities

The Government of Malaysia has long been putting effort in curbing illegal gambling activities through uncountable police raids in the country. However, illegal gambling dens seem a bit difficult to be eliminated which could be possibly due to some corrupted police officers, as revealed by one of the insiders from the police force. (also a good friend of the author).

Notwithstanding the above, the current Deputy Prime Minister of Malaysia, Ahmad Zahid Hamidi, has been focusing on curbing illegal gambling activities since his last position as the former Home Minister of Malaysia.

In January 2014, Datuk Seri Dr. Ahmad Zahid Hamidi announced the formation of a 200-strong special police squad – the Special Task Force on Organized Crime (Statoc) – dedicated to putting illegal gambling operators out of business. The New Straits Timesquoted Zahid saying he wanted illegal operators to know “that we mean business.” Zahid warned operators “both conventional and online, to close down their business now, and not mess with us.”

In July 2015, the Deputy Prime Minister of Malaysia, Ahmad Zahid Hamidi, has instructed the local police authority to fight against illegal gambling activities in the country given an enormous of underground kiosk-based casino operators in the country. He claimed that the local police force has flushed out illegal gambling dens under the “Op Cantas Khas” operations since then.

Illegal Operators Switching to Online-based Operations

Given the high uncertainty in operating an illegal gambling den due to pressure imposed by the local police force, some of the operators have switched their gambling operations from retail shop to online-based. Coupled with growing demand for mobile live casino and slot games in the local gambling industry, online casino market is expanding at a rapid pace. These online casino operators are able to hide from the local authority as they do not need a shop to serve gamblers anymore.

One of the real examples of online casino operators is BigChoySun, which labels itself as the “First Ever Kedai Mesin Judi” in Malaysia. Same as an illegal gambling den, BigChoySun offers 24/7 customer service plus fast-deposit-fast withdrawal service which allows gamblers to bet at anywhere, anytime. Rather than dealing in cash-term, BigChoySun uses banking facilities as a platform to facilitate cash management with the gamblers, including major local banks – Maybank, CIMB Bank, Public Bank, and Hong Leong Bank. BigChoySun has even more products as compared to the physical gambling den, such as 12Win Casino, SCR888 Casino, ClubSunCity Casino, LuckyPalace Casino, Crown Casino, Rollex Casino, which are basically all mobile/computer-based gaming software that provides a gambling platform to the gamblers in Malaysia.

Is online gambling/online betting legal in Malaysia?

In Malaysia, gambling activities are generally regulated under the Common Gaming Houses Act 1953. Being detained for gambling activities in an illegal gambling den, a person could face a penalty of not less than RM10,000 but not over RM100,000, or imprisonment not less than five years upon conviction, under the Section 4B (a) of the Common Gaming Houses Act 1953.

Another possible scenario in Pahang (one of the largest states in Malaysia), is that a person could also be charged under the Section 4(1)(b) of the Entertainment Enactment 1993 (Pahang) for being involved in illegal gambling activities. This could involve a penalty of not less than RM10,000 but not more than RM50,000, or imprisonment for a term not exceeding five years, or to both.

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Any Hassle-free Platform to Bet in Malaysia?

The safest way to gamble is to engage with online gambling platform provider available in the country to bet at home. With online banking facilities, a person could place a bet at anytime or anywhere he or she wants without the risk of being caught by police. Here comes the important question: is it safe to bet with online casino platform provider that is behind the computer screen?

Some of the online casino operators might not compensate players for their winnings, for example, striking a huge jackpot that might cost an operator tons of money. Nevertheless, 918KISS is thus far the most reliable and trusted gambling platform provider we have ever seen in Malaysia. A player’s withdrawal request would be completed in just 5 minutes’ time or faster which offers more confidence to the customers.

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So, why would you risk yourself again from betting at illegal gambling den when you can bet online?

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