Unregulated

Highly Restricted Through Online Gambling Is Unregulated
Malaysia, with Islam being its official religion of the federation, is less tolerant of all forms of gambling than other non-Islamic countries. Gambling is generally criminalized in Malaysia. Furthermore, most of its gaming laws were enacted before Malaysian independence, and as such, the legal provisions are often archaic and outdated. Particularly, while the existing gaming legislations do not specifically provide for online and/or remote gambling, it still suggests that such activities would still fall under the scope of the current gaming regulations.

The oversight of the gaming industry in Malaysia is primarily regulated by the Betting Control Unit under the Ministry of Finance (“MOF”). The MOF is empowered to regulate and monitor these activities pursuant to Section 27A of the Common Gaming Houses Act 1953 (Revised 1983). The laws governing gaming activities in Malaysia are as follows:

1. Common Gaming Houses Act 1953 (Revised 1983) (“CGHA”)
2. Betting Act 1953 (Revised 1992) (“BA”)”
3. Lotteries Act 1952 (Revised 1983) (“LA”)
4. Pool Betting Act 1967 (Revised 2018) (“PBA”)
5. Racing (Totalizator Board) Act 1961 (Revised 1992) (“RTBA”)
6. Racing Club (Public Sweepstakes) Act 1965 (Revised 1989) (“RCPSA”)

Additionally, the following laws would also touch on the regulation on the promotion of gaming activities in Malaysia:

1. Communications and Multimedia Act 1998 (“CMA”)
2. Communications and Multimedia Content Code 2022 (“Content Code 2022”)
3. Malaysian Code of Advertising Practice (“MCAP”)

Whereas the law governing the duties and taxation of gambling products in Malaysia are as follows:

1. Gaming Tax Act 1972 (“GTA”)
2. Betting and Sweepstakes Duties Act 1948 (Revised 1978) (“BSDA”)
3. Income Tax Act 1967 (“ITA 1967”)

Gambling activities in Malaysia is tightly controlled. The only legal forms of gambling activities are those mentioned in “Competitive Landscapes” above. Other forms of gambling, such as playing cards or placing casual bets based on random events, exist in a social space but are not explicitly legal.

Market Size
The market size for gambling activities in Malaysia is unknown as there is no official report issued by any institution. However, the gaming revenue gained by the public listed companies in the gaming industry is available in their latest annual report:

4. Genting Malaysia Berhad’s obtained a revenue of RM 76 billion for the company from gaming activities conducted at Genting Highlands in Malaysia for year 2023
5. Magnum Berhad obtained a revenue of RM 2.16 billion from gaming business activities for year 2023
6. Sports Toto Berhad recorded a revenue of RM2.831 billion from betting business for year 2023

At the time this report is submitted, it is not clear how much revenue has been obtained by the turf clubs and Pan Malaysia Pools Sdn Bhd, which operates Da Ma Cai, as these are not publicly listed entities in Malaysia.

Competitive Landscape
The CGHA does not prescribe restrictions on the number of licences that may be granted by the Ministry of Finance; however, there is only one licensed casino gaming services operator in Malaysia, which is Genting Malaysia Berhad.

So far, only physical gambling operators have been granted licences under the CGHA. We have not observed any online gambling operators in Malaysia.

Localisation
There is no localisation of gaming activities in Malaysia.

Top Key Attractions and Challenges
Attractions

• Licensing authority is mostly vested with the Ministry of Finance, Malaysia
• Opportunities for online gaming exist due to legislative ambiguities
• Excellent air connectivity, tourist visa is not normally required for stays of less than 30 days
• Excellent tourist hub
• Great weather, summer all year round

Challenges

• Gaming licensing fees, duties, and taxes imposed on operators may be exorbitant
• Lack of regulation and proper licensing procedure
• Gaming advertising and promotion that is unlicensed are deemed prohibited unless otherwise approved by the authority