Online Gambling Laws in Malaysia

Malaysia's legal system comprises two frameworks: the Islam-based Sharia law and the secular law for all non-Muslims. Since Islam forbids gambling and most of Malaysia's population is Muslim, it's no surprise that most forms of gambling are illegal in the country. However, that's not the end of the story. Read on to learn more about Malaysia's gambling laws.

Gambling Regulation by Casino Type

When you consider that the majority of the population of Malaysia is Muslim and that gambling is not permitted under Islam, you can easily assume that the situation is pretty cut and dried. However, a few gambling activities are permitted in the country by law, mostly for the benefit of the non-Muslim population. Let's look at Malaysia's gambling laws relating to individual activities.

Casino Games

The Betting Act of 1953 made all betting houses illegal, with stiff punishments for those operating one and those caught gambling in one. The only exception is the Resorts World Genting casino, which features over 400 electronic table games, more than 3,000 slot machines and 30 traditional tables for games such as Blackjack, Roulette and Sic Bo. Entry to the land-based casino is limited to non-Muslims and those over 21.

Regarding online casino gaming, the law doesn't mention the activity specifically. While gambling is largely illegal in the country, many Malaysians have no trouble accessing online gambling sites based outside of the country, which can be done easily via the region's many internet cafes. The government does take action to prevent Malaysians from being able to access these sites, usually by ordering banks to stop making transfers to offshore online casinos.

Poker

The Common Gaming Houses Act of 1953 defined gambling as playing any game of chance or mixed chance and skill for money or money's worth. Under this definition, poker games are also classified as gambling and, therefore, illegal in Malaysia. The same situation applies to online poker games, although many Malaysians have little problem accessing top Malaysian online casino sites that offer many different poker games.

Bingo

Bingo is another form of gambling under Malaysia's legal definitions and, therefore, not permitted in the country. As a result, you won't find the game played openly in the region. Online bingo gambling is also illegal in the country, but many Malaysians can easily access online bingo sites to explore the excitement of these lucky number games.

Lotteries

The Lotteries Act 1952 permits the running of lotteries in the country, and there are currently six privately owned lotteries in Malaysia. However, several illegal lotteries operate in the country. It's reported that these illegal operations bring in approximately 60% more revenue than the six legal lotteries combined.

Despite the country's more lenient legal stance regarding lotteries, online lottery games for real money are still classed as illegal in Malaysia. Of course, plenty of people in the country access the numerous offshore online casinos for their lottery betting entertainment.

Social Casinos and Crypto Casinos

Regarding social games that may offer items of perceived value, such as loot boxes, there is no mention of these per se in current laws. However, given the country's strict stance on most forms of gambling, it's safe to assume that these games are most likely frowned upon, too.

Malaysia Sports Betting Laws

Unfortunately, Malaysians are largely out of luck again when it comes to sports betting, with almost all forms of the activity strictly illegal in the country. The only form of sports betting allowed is horse racing, permitted under the Racing Act 1961, but only for onsite betting at the racetrack. It's also illegal for Malaysians to bet on sports online, though many still choose to do so by joining one of the numerous online sportsbooks that accept punters from Malaysia.

Gambling Age Restriction

To participate in the country's few legal gambling activities, you must be 21 years or older and not Muslim.

Tax Regulation

The great news for Malaysians participating in legal gambling activities in the country is that your winnings are entirely tax-free! However, Malaysian gambling tax regulations mean the same cannot be said for the operators, who must pay 35% of their tax revenue.

History of Gambling Laws in Malaysia

Malaysia's gambling history began in the 19th century when Chinese merchants introduced the activity during their travels. However, due to the country's majority Muslim population, gambling in almost all its forms was, and still is, illegal under Sharia Law.

This harsh stance was written into law in 1953 with the Betting Act and the Common Gaming Houses Act, which defined gambling and outlawed any such activities, punishable by a hefty fine and a prison term of up to 5 years. The 1952 Lotteries Act allowed for the legal operation of 6 privately owned lotteries, although numerous illegal lotteries also ran alongside them. After the Brits introduced horse racing to Malaysia in the 1800s, betting on the popular sport was legalized with the Racing Act 1961, but only at one of the country's three racecourses.

Key Facts

The main point to remember about Malaysia's gambling laws is that most forms of gambling are illegal in the country. The only exceptions are:

• TheResorts World Genting land-based casino (21 years+, non-Muslims only).
• On-track horse racing betting.
• Licensed lotteries.

Online gambling isn't specified in Malaysia's laws but is generally considered illegal, too. However, that doesn't stop Malaysians from playing their favourite online casino slots, table games, liv,e dealer games, and betting on sports at the numerous online sites.