Regulations You Need to Know About Betting in Malaysia

Malaysia houses one of the world’s most prestigious hotel and casino resorts. The resort goes by the name, Resorts World Genting. Also referred to as Casino de Genting, the Resorts World Genting is a magnificent hill resort located in Pahang (some 50km from Kuala Lumpur) that accommodates the Monte Carlo Casino, Hollywood Casino, and Star World Casino.

The availability of the resort however doesn’t mean that Malaysia wholly liberalised and legalised all forms of gambling. Rather, some betting activities are legalised while others are prohibited. To learn which activities are on either side of the aisle, just spare a few moments to check out this comprehensive guide on the regulations that guide the betting industry in Malaysia.  

The Regulations That Guide the Betting Industry in Malaysia

betting in malaysia

In all, four pieces of legislation guide the betting industry in Malaysia. it is these four that spell out which activities are legal to engage in and which ones are prohibited. The four have been around for quite some time and, as such, they specifically talk about betting at land-based gambling establishments.

  • Betting Act (1953): The Betting Act (1953) – amended in 1992 – is currently the main regulation that guides betting in Malaysia. This Act states that a betting house is a physical establishment where bets on activities such as horse racing are placed. If such a betting house is permitted and licensed by competent authorities such as the Unit Kawalan Perjudian of the Malaysian Ministry of Finance, otherwise known as the Betting Control Unit, then all bets placed are considered legal.
  • Common Gaming Houses Act (1953): This Act defines games of chance and games of skill. Outright, the Common Gaming Houses Act (1953) prohibits games of skill. Only specified games of chance are permitted.
  • Racing Act (1961): One of the legalised forms of betting in Malaysia is horseracing betting. The regulation which made this possible is the Racing Act (1961). A key specification of the Act is that only races that take place on approved Malaysian race courses are eligible to bet on.
  • Lotteries Act (1952): Punters who are fascinated with picking lucky numbers are free to do so as the Lotteries Act (1952) legalises lottery games. Only the lotteries that are licensed by Malaysian authorities (Social and Welfare Services Lotteries Board) are legalised.

The Legality of Online Betting in Malaysia

The above-stated pieces of legislation explicitly focus on betting at physical establishments. None talk about online betting even when considering Acts that have been amended such as the Betting Act (1953). This in essence leaves the legality of online betting in Malaysia in a grey area.

The absence of regulations that specifically talk about online betting has created lots of loopholes that are taken advantage of by gaming operators. Without any laws that restrict offshore operators from offering betting services, Malaysia has witnessed a surge in the number of offshore online casinos and bookmakers.

It’s not just the gaming operators however who take advantage of the loopholes created by the absence of guiding legislation. Even locals who love engaging in all forms of gambling can enjoy their favourite pastime in the comfort of their own homes when they visit offshore betting sites.

Such is the great love for betting services by Malaysians that some betting sites have resorted to integrating some Malaysian payment providers to make transacting smoother and seamless for Malaysian players. Other top betting sites even support the local language to ensure that players can navigate the site easily and get adequate assistance whenever they need it.

What the Future Holds for Online Betting in Malaysia

The mere fact that the four main pieces of legislation that guide the gambling industry in Malaysia remain quiet when it comes to the legality of online betting is not an indicator that discussions on this matter do not take place in the high offices where key decisions are made. In a televised interview in July 2020, the Malaysian Deputy Minister of the Communications and Multimedia Ministry said there are “ongoing discussions for the legalization of online gambling in the country, albeit only for non-Muslim citizens.”

Since then, there hasn’t been any major development that suggests the country is set to legalise betting. Likewise, there haven’t been any moves to suggest the country is taking the route to outrightly prohibiting online betting. At this juncture, everything remains in a legal grey area.

Perhaps the one most important thing to be taken from the Deputy Minister’s pronouncements is that the discussions taking place in high offices will in the future lead to a clear-cut standing in relation to the legality of online betting. Either to the pleasure of pro-betting individuals or to their disappointment, the legal grey area is set to be a thing of the past.

Any decision that will be made in the high offices will certainly be reached bearing in mind Malaysia’s population demographics as relayed below.

The Population Demographics and Religion Factor

Malaysia is a highly diverse country. The National Library of Medicine puts the number of dominant religions at 4 (Islam 61.3%, Buddhism 19.8%, Christianity 9.2% and Hinduism 6.3%).  There are also a whole host of other traditional Chinese religions. These statistics show that a greater percentage of Malaysian locals are Muslims. The Sharia Law which stipulates how they ought to live prohibits any form of gambling.

Moreover, Malaysia is a multi-ethnic country. The different communities in the country subscribe to different views when it comes to gambling. The dominant ethnic group, Malay subscribes to a conservative approach when it comes to gambling while other communities such as the Chinese are more liberal. In drafting betting laws, Malaysian authorities will therefore need to consider that the dominant religion and ethnic group both prohibit any forms of gambling. Any betting services that are legalised will therefore serve only a portion of the population.

Round Up

In Malaysia, betting regulations do exist but these only focus on betting at physical establishments. The regulations are quiet when it comes to online betting. This therefore leaves online betting in a legal grey area. Players who choose to play at offshore betting sites can do so albeit at their own risk as there aren’t any regulations that can help them recover their funds or data if the sites, they settle at aren’t genuine. Settling at genuine offshore betting sites is therefore the most important thing to do for all betting lovers in Malaysia.

Frequently Asked Questions (FAQ)

Q1. Is online betting legal in Malaysia?

Online betting lies in a legal grey area in Malaysia as there aren’t any regulations that explicitly permit or prohibit online betting services.

Q2. Which betting services are legalised in Malaysia?

The betting services which are legalised in Malaysia are horse racing and the lottery. However, only services offered at licensed physical establishments are legal to bet on.

Q3. Can I use Malaysia Ringgits (MYR) to place bets at betting sites?

When playing at select betting sites, yes, it’s possible to use Malaysia Ringgits (MYR).  

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