Malaysia

Malaysia operates a prohibition-family regime with a narrow band of land-based, non-Muslim-only state-monopoly carve-outs. Online gambling has no licensing pathway for any operator and is illegal for operators and players regardless of location. The foundational statutes are the Common Gaming Houses Act 1953 and the Betting Act 1953, supported by the Lotteries Act 1952, the Pool Betting Act 1967 and the Racing (Totalizator Board) Act 1961. A majority-Muslim population (~60-70%) is additionally subject to dual civil and Syariah enforcement. A large, tech-savvy, sports-mad population sustains a substantial illegal offshore online market behind a comprehensive prohibition wall, generating a major market-size/prohibition tension.

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, except for licensed operators. The regulation of gaming activities in Malaysia is relatively sparse, as different gaming activities may be subject to different gaming laws, resulting in an overlap and unclear regulation of such activities. 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of its gaming laws were enacted before Malaysian independence, and as such, the legal provisions are often archaic and outdated.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 The oversight of the gaming industry in Malaysia, previously under the purview of the Betting Control Unit, is currently regulated by the Public Asset Management Division (PAM) 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: - Common Gaming Houses Act 1953 (Revised 1983) (“CGHA”); Betting Act 1953 (Revised 1992) (“BA”)”; Lotteries Act 1952 (Revised 1983) (“LA”); Pool Betting Act 1967 (Revised 2018) (“PBA”); Racing (Totalizator Board) Act 1961 (Revised 1992) (“RTBA”); 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: Communications and Multimedia Act 1998 (“CMA”); Communications and Multimedia Content Code 2022 (“Content Code 2022”); Malaysian Code of Advertising Practice (“MCAP”) Whereas the law governing the duties and taxation of gambling products in Malaysia are as follows: Gaming Tax Act 1972 (“GTA”); Betting and Sweepstakes Duties Act 1948 (Revised 1978) (“BSDA”); and Income Tax Act 1967 (“ITA 1967”). Gambling activities in Malaysia is tightly controlled. Under Section 27A of the CGHA, the Minister of Finance may grant a licence to a company (other than a foreign one) to promote and organise such activities for a period not exceeding 3 months. However, the renewal process is unclear as the CGHA is silent and do not address on this issue. Under the CGHA, the Minister of Finance may, at his discretion, renew such licences for periods not more than 3 months. There is no limitation as to how many times the licences may be renewed, and it seems to suggest that the licences may renewed for infinite times. Although the granting of a licence to operate gambling business activities are regulated under Section 27A of the CGHA, the setting up of lotteries shops and/or gaming premises may also be subject to the approval of local authorities or city council, depending on the location where the premises are to be set up. In the High Court case of Mahfuz Haji Omar v. Muhammad Sanusi Md Nor [2021] CLJU 1826, a defamation lawsuit involving two Malaysian well-known politicians, whereby the Defendant had made a defamatory allegation in a Facebook posting alleging that the Plaintiff, being the elected representative of Pokok Sena and also a Muslim, had approved the relocation of a Sports Toto lottery shop within its constituency, with the intention to injure the Plaintiff and the ruling government’s reputation in the eyes of the Muslim community in Malaysia. Whilst the judgement does not strictly address on the issue of whether the local authorities or city council can grant a lottery shops licence within their constituency, the judge in assessing the truthiness of the statements made by the Defendant, held that the Defendant had failed to show that the Plaintiff was responsible for the licensing or for the movement of the Sports Toto outlet from its former site to its new premises within the Pokok Sena constituency. The power to issue licences and regulate the said activities fall within the purview of the MOF under Section 3 of the LA, or under Section 27A of the CGHA. The power relating to the said act is specifically allocated to the Minister of Finance and not to any other Minister or Deputy Minister. Thus, the grant of any licence relating to gambling or lottery does not fall within the purview of the Plaintiff's then responsibility or knowledge at the material time. Betting ## Betting Act 1953 (“BA”) While there “betting” is not defined under the BA, it can be defined as the staking of money or money’s worth on the outcome of a race, competition, sporting event or other event, the likelihood of anything occurring or not occurring. Section 2 of the BA also provides that “betting information centre” and “common betting house” as places where bets or wages are received in relation to horse racing or sporting events; whereas “sporting events” is defined as any “race, fight, game, sport or exercise.” Section 6(1) of the BA bans all forms of betting or wagering activities by any means. The word “wager” is also not defined in the Act. In determining a wagering contract, it is essential that each party may either win or lose which depends on the issue of the event. A form of wagering is betting at fixed odds where parties to the bet agree the odds or rate of return payable on a winning bet. If either parties may win but cannot lose or may lose but cannot win, it is not a wagering contract. Thus, a bet placed with a totalizator is not a wager. The act of advancing money for the purpose of conducting the business of a common betting house is also an offence. Based on Section 4(1), it is also an offence to do the following: For an owner to use a place as a common betting house or betting information centre; or Permit a place to be used as a common betting house or betting information centre; or Manages a place used as a common betting house or betting information centre; or Receive any money or valuable thing in respect of any bet or wager in a common betting house or betting information centre; or Makes an announcement in any for that a common betting house or betting information centre within or without Malaysia is open, or solicits any person to commit a breach under the BA. The abovementioned offences upon conviction shall result in the liability of a fine not less than RM20,000.00 and not more than RM200,000.00, as well as an imprisonment term not exceeding five years. ## Pool Betting Act 1967 (“PBA”) Pool betting under the PBA is considered as betting as pool betting activities is defined in Section 2 of the PBA as a bet made by means of a totalisator situated in or outside Malaysia in respect of any prescribed event. “Prescribed event” is defined in Section 2 as “football matches, or a series of such matches held in or outside Malaysia and any other event in respect of which it is prescribed under this Act that totalisator investments may be received.” In the context of betting, a pool can be viewed as the collective stakes of a number of person staking a sum of money on one of the competitors in the competition where the proceeds are divided among the backer of the winners. Other statutory examples of pool betting are given in Section 3(1) of the PBA whereby a person make bets: on terms that the winnings of such of those persons as are winners shall be, or be a share of, or be determined by a reference to, the stake money paid or agreed to be paid by those persons, whether the bets are made by means of a totalisator or by filling up and returning coupons or other printed or written forms, or otherwise howsoever; on terms that the winnings of such of those persons as are winners shall be, or shall include, an amount (not determined by reference to the stake money paid or agreed to be paid by those persons) which is divisible in any proportion among such of those persons as are winners; or on the basis that the winners or their winnings shall, to any extent, be at the discretion of the licensee or the Board by his or its own operation or promotion of pool betting, or by his or its operation or promotion with an operator or promoter outside Malaysia as may be authorized in accordance with this Act. It was further clarified that pool betting should not be considered as betting at fixed odds which is defined in Section 3(2) as each of the persons making it knows or can know at the time he makes it, the amount he will win, except in so far as that amount is to depend on the result of the event or events betted on, or on any event taking place or producing a result or on the numbers taking part in any such event or on the starting prices or totalisator odds for any such event or there being totalisator odds on any such event or on the time when his bet is received by any person with or through whom it is made. Essentially, fixed odds betting is a form of betting whereby bets are placed on the outcome of an event at predetermined odds such as in sports matches or horse races. For clarification purposes, a “totalisator” is defined in Section 2 as the contrivance for betting known as the totalisator or pari-mutuel, or any other machine or instrument of betting of a like nature, whether mechanically operated or not. According to Section 21(2), engaging in pool betting activities are allowed so long as it is carried out in accordance with a licence issued by the Minister based on Section 5(1) or an approved scheme based on Section 16(2). Example of pool betting operator in Malaysia would be Sports Toto Berhad. ## Racing (Totalizator Board) Act 1961 (“RTBA”) The RTBA provides for the operating, promoting, and managing betting offerings on horse racing, and betting on such activities is allowed only if it is allowed in accordance with a scheme approved by the Minister of Finance pursuant to Section 16(1) of the RTBA, and such approved activities must be in respect of race meeting. Further, Section 2 of the RTBA defines “race meeting” as “a meeting for the purpose of horse racing.” However, a “totalizator” is defined under Section 2 of the RTBA as an “instrument for wagering or betting known by that name, and any other instrument, device, machine or method of a like nature and conducted on the same principles, and includes a numbers forecast totalizator paying a fixed minimum dividend.” Based on the readings of the RTBA Sections cited above, it would suggest that the RTBA can only be governing activities that involved the betting of horse racing AND the combination of the use of numbers forecast totalizator (“NFT”). There is a news report stating that the Court of Appeal decision, the appeal against the High Court decision of Superole Sdn Bhd v Bonfull Sdn Bhd [2020] MLJU 1821, which held that the running of NFT per se, is to be governed by the RTBA, and not the LA (for laws pertaining to lotteries, see Lottery Overview below). However, the written judgment of this case has not been released and is only reported via media outlets. As such, until the written judgment is released, the said High Court decision remains binding which states that NFT is a form of gambling which falls under the LA. An example of horse racing mixed NFT provider in Malaysia would include Da Ma Cai in Malaysia. Casino A casino is considered a “common gaming house” under the Section 2 of the CGHA. A ‘common gaming house’ is defined therein as: any place kept or used for gaming to which the public has access to, a place kept for habitual gaming irrespective of whether members of the public have access to the same, a place kept or used for the purpose of a public lottery, and a place where either eight or more persons are gaming, where a bankers’ game is played or where gaming is played and for which payment is made to a person as consideration for permitting gaming in such place. The word “gaming” is a defined term under Section 2 of the CGHA and includes games specified in Column 1 of the First and Second Schedules to the Act such as roulette, blackjack, poker and tai sai. Additionally, “gaming” also encompasses the playing or operation of any gaming machine. Section 3 of the CGHA effectively declared that every common gaming house to be a common public nuisance. Thus, the operation and/or use of a common gaming house is both directly and indirectly prohibited by the CGHA. For example, a person who inter alia owns, occupies, or uses a place as a common gaming house, or alternatively has the care or management of a place used as a common gaming house, would be deemed to have committed an offence under the Act. The other applicable gaming laws mentioned herein can also be used to prohibit other specific gaming activities to be played in a casino and/or common gaming house, such as betting, poker, and lotteries, either absolutely or subject to certain conditions stated in the licences or permits issued by the MOF. Lotteries A “lottery” is similarly defined under Section 2 of both the LA and CGHA, as any game, method, scheme or device whereby money or money’s worth is distributed subject to chance or lot. There are three requirements for a game, method, scheme or device to constitute a lottery based on the definitions. First, there must be a distribution of money or money’s worth (hereinafter collectively referred to as “prize”). The phrase “money’s worth” refers to any valuable and tangible consideration as a substitute for money. However, that actual distribution of the prize is not necessary, provided the persons providing consideration are given a chance of a prize. Next, the distribution must be entirely dependent on chance. A game cannot amount to a lottery if pure exercise of skill can contribute to a person’s success in winning the prize. Lastly, although the legal definition does not expressly provide for the participants to contribute or offer valuable consideration in exchange for a chance at winning a prize, it is trite that valuable consideration is required. Notwithstanding this, it is not necessary for the prize to be paid from participants’ contributions. There are two types of lotteries recognised by the LA and CGHA – private and public lotteries. Public lotteries are lotteries where the tickets or chances are sold to the public or a Section thereof, whilst private lotteries are lotteries where the sale or distribution of lottery tickets or chances is confined to members of a society established and conducted for purposes other than gaming, waging or lotteries. Lottery tickets are any articles which entitle a person, being the holder of the ticket or any other person, to receive a prize on the happening of any event connected with a public lottery. At present, there are several licensed lottery companies in Malaysia. These are Magnum Corporation Sdn. Bhd., Pan Malaysia Pools Sdn. Bhd., Pan Malaysian Sweeps Sdn. Bhd., Sports Toto Malaysia Sdn. Bhd., Natural Avenue Sdn. Bhd. (Special Cash Sweep), and Lotteries Corporation Sdn Bhd (Diriwan 88). The laws and regulations governing each lottery company differs depending on the purpose and nature of the lotteries. ## Lotteries for philanthropic purposes The permits for the promotion and conduct of lotteries for philanthropic purposes are governed by the LA. Specifically, the licensing for such activities is governed by Section 4(1) of the LA, where the Minister of Finance may, in his discretion, grant a permit at his discretion. These permits can be issued to any person or society for the purpose of raising funds to support philanthropic, religious, educational, or welfare organizations, institutions, bodies, or services, or to carry out schemes or projects beneficial to the community. However, it is stipulated that no funds raised through these lotteries shall be applied for any purpose related to the religion of Islam. Additionally, if a private lottery is promoted by a society with predominantly social or sporting objectives, the funds may be used to further the society's goals. ## Lotteries for commercial purposes The permits for the promotion and conduct of lotteries for commercial purposes are governed by the CGHA, and its licensing is governed by Section 27A of the CGHA. ## Pari-mutuel or Number Forecast Totalisator (“NFT”) lotteries Where the prizes awarded for the games in these lotteries are pari-mutuel or determined through NFT, the conduct and management of the game is governed by the PBA irrespective of the purpose of the lottery by virtue of the definition of “pool betting” and “totalisator” under the PBA. Under the PBA, a “totalisator” is defined as the “contrivance for betting known as the totalisator or pari-mutuel, or any other machine or instrument of betting of a like nature, whether mechanically operated or not;” whereas, a “pool betting” is defined as “a bet made by means of a totalisator situated in or outside Malaysia in respect of any prescribed event.” In the context of pari-mutuel betting, all bets are placed together in a pool, and the payoff odds are calculated by sharing the pool among all winning bets, after deducting a management fee. It means that the final payout is determined by the total amount of money wagered and the number of winners, rather than by fixed odds set by a bookmaker. Due to the vast definition of ‘pool betting’ under the PBA, which encompasses all NFT-based games, the lottery companies in Malaysia are primarily governed by the PBA as opposed to the LA, despite that these companies are conducting lotteries activities. Examples of lottery operators in Malaysia that are governed by the PBA are Magnum Corporation Sdn. Bhd. and Sports Toto Malaysia Sdn. Bhd. for their 4D games and variations of the same such as ‘1 + 3D’. ## Horse race NFT lotteries Similar to Part C above, where the distribution of the prizes is in pari-mutuel or determined via NFT, but involves race meetings, the relevant governing act would be the RTBA 1961. For example, the distribution of prizes for Da Ma Cai, which is operated by Pan Malaysia Pools Sdn. Bhd., is determined using an NFT scheme and also involve a designated horse race conducted by the company at various locations such as the Selangor Turf Club, Perak Turf Club, and the off-course centres. Accordingly, Da Ma Cai, as a horse race NFT lottery scheme provider, is governed by the RTBA, notwithstanding the fact that Da Ma Cai operates with philanthropic goals. ## Registration of Lotteries Gaming machines The Lotteries (Registration and Licensing of Gaming Machines) Regulations 1973 (hereinafter referred to as the “1973 Regulations”) requires that a gaming machine must be registered and licensed under the said Regulation, failing which a person commits an offence. Under Regulation 2, “gaming machines” are considered as any device that are designed for the purpose of playing a game of chance or of mixed chance and skill which may be operated by inserting a gaming token into the device, by using gaming machine credits, by the electronic transfer of credits of gaming tokens to the device or by the use of gaming tokens held, stored or credited by the device and through which winnings become payable as a result of making a bet on the device; whereas, ‘gaming tokens’ are broadly defined to include Malaysian currency as well as any token, coin, disc, credit or any other thing that enables a bet to be made on a gaming machine. If a machine meets the above-cited definitions under the Regulations, Regulation 4 mandates that such a gaming device must be registered, and Regulation 7 further requires that a licence to deal with gaming machines must be obtained. Any person who fails to acquire a licence to deal with gaming machines under Sub regulation 3(2) shall be guilty of an offence, and upon conviction, be liable to imprisonment for a term not exceeding three (3) years or to a fine not exceeding RM10,000.00, or to both.

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, except for licensed operators. The regulation of gaming activities in Malaysia is relatively sparse, as different gaming activities may be subject to different gaming laws, resulting in an overlap and unclear regulation of such activities. 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. ## 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: Genting Malaysia Berhad’s obtained a revenue of RM 4.76 billion for the company from gaming activities conducted at Genting Highlands in Malaysia for year 2023; Magnum Berhad obtained a revenue of RM 2.16 billion from gaming business activities for year 2023; and 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. ## 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.

Generally, all forms of advertising related to gambling are generally restricted and prohibited in Malaysia, in both physical and virtual forms. For online advertisement, they would be governed by the CMA and the Malaysian Communications and Multimedia Content Code 2022 (the “Content Code”), and the Malaysian Code of Advertising Practice (“MCAP”). The various gaming legislations in Malaysia also address issues regarding the advertising of gambling activities, but many provisions do not contemplate the development of media advertising in the online context and are often outdated. ## i) Communications and Multimedia Act 1998 The CMA was amended in early 2025 by the CMA (Amendment) Act 2024 which came into force on 11 February 2025. The changes have been noted and inserted hereafter. Section 211 of the CMA (as amended by the CMA (Amendment) Act 2024) prohibits the provision of grossly offensive (previously only encompassing offensive content) content by content application service providers (CASPs). This provision may indirectly impact gambling activities, as they could be considered grossly offensive or menacing. Offenders face fines of up to one million ringgit or imprisonment of up to ten years or both, with additional fines of one thousand ringgit for each day the offence persists after conviction. With relevance to Section 211, Section 211A allows the MCMC to order that the CASPs’ services be suspended for a specific period if they have failed to comply with this section. Following the amendments of the CMA made under the CMA (Amendment) Act 2024, the government is said to revise the existing Content Code to reflect the amended laws. ## ii) The Content Code The Content Code has expressly deemed advertisements for products or services that are prohibited under any laws/regulations currently existing in Malaysia as unacceptable. As such, any advertisements promoting betting or gambling are not allowed. Further, Part 3, paragraph 10 of the Content Code states that companies which are in the business of gambling and betting shall adhere to the CGHA and Betting Act 1953, and other relevant legislation, rules, guidelines, and regulations governing the advertisement of gambling and betting. The Content Code, nevertheless, allows betting and gambling companies to advertise or produce messages with elements of corporate social responsibility and public service announcements through their associated charitable arm provided that the guidelines prescribed under the Content Code are adhered to. Moreover, these campaigns shall refrain from incorporating elements such as names, taglines, or logos that might suggest the gambling or betting aspects of the companies’ operations. It should be noted that the Content Code is a voluntary industry code, and compliance is not mandatory, subject to Section 99 of the CMA. Section 98(2) of the CMA provides that compliance with a registered voluntary industry code shall be a defence against any prosecution, action or proceeding of any nature, whether in a court or otherwise, taken against a person (who is subject to the voluntary industry code) regarding a matter dealt with in that code. ## iii) The Malaysian Code of Advertising Practice (MCAP) The MCAP is a code that defines the standard of advertisements and provides general guidelines for all practitioners of advertising to abide, but it covers non-broadcast media including print, outdoor and direct mail. Similar to the Content Code, it also provides for general advertising principles, where the advertisements shall be legal, decent, honest, and truthful, and should not contain anything that is false or misleading. Particularly, gambling activities, may be deemed sensitive and offensive towards the religious, political, sentimental, or racial susceptibilities of any community in Malaysia. ## iv) The Common Gaming Houses Act 1953 Further, the CGHA outlines offences related to gambling, including provisions targeting marketing and advertising. Sections 4(1)(g) and (h) of the CGHA prohibit announcing or publishing invitations to gamble, including through oral, print, or digital means. This encompasses promoting competitions where prizes depend on chance rather than skill. Thus, these Sections could be interpreted as prohibiting marketing and advertising activities related to gambling in Malaysia. Offenders may face fines ranging from five thousand to fifty-thousand-ringgit, imprisonment for up to three years, and additional fines for each gaming machine seized. Betting ## Common Gaming Houses Act 1953 For activities which do not have specific legislation or are included in the First Schedule or Second Schedule of the CGHA, please see above on the Marketing Overview. ## Betting Act 1953 Under the BA, it is an offence, to announce, exhibit or publish by any means that a place is used as a common betting house or betting information centre within or without Malaysia or in any manner invites the person to commit a breach of provision of the Act. If found guilty, the person would be liable to a fine of not less than twenty thousand ringgit and not more than two hundred thousand ringgit and shall also be punished with imprisonment for a term not exceeding five years. It is also an offence to announce or publish by any means the result of any public lottery or horse race or other sporting event. If found guilty, the person would be liable to a fine of not less than five thousand ringgit and not more than fifty thousand ringgit and shall also be punished with imprisonment for a term not exceeding two years. However, it should not be an offence where: there is an announcement in any newspaper relating to any horse race or the result if such newspaper is published under a licence issued in accordance with the Printing Presses and Publication Act 1984; it is subject to provisions of any permit granted in respect, thereof, to any public lottery promoted under any permit granted under the LA; there is a Totalizator Board established under the RTBA and the employees of such Board are acting in the course of their duties and where employees of turf club are acting as agents of the Board under any approved scheme of the Act are acting in the course of their duties. ## Pool Betting Act 1967 Under the PBA 1967, advertisements are only allowed to be carried out by the licensee, the Board or the agent. Specifically, the licensee, Board or agent can carry out the following: exhibit the name of any pool betting agency on any premises in which the agency is situated; or publish any advertisement relating to the totalisator for pool betting or setting out any list of pool betting agencies, information of any pool betting agency, rules subject to pool betting which may be received at the agency or naming the prescribed events where pool betting may be received at any agency. The Minister does have the discretion to prohibit, restrict or regulate any exhibition or publication and any person who contravenes it commits an offence and if convicted, shall be liable to a fine not exceeding five thousand ringgit. ## Racing (Totalizator Board) Act 1961 Certain advertisements relating to totalizator agencies are not unlawful. The following should not be an offence: To exhibit the name of any totalizator agency on any premises in which the agency is situated; To publish in the newspaper, any advertisement setting out any list of totalizator agencies, information of any totalizator agency, rules subject to which totalizator investments may be received at any such agency or the name of any race meeting in respect which totalizator investments may be received at any such agency. These laws will be in addition to the general provisions governing gambling activities under the CMA and the Content Code above in the Overview for Marketing. Lotteries Marketing and/or advertising of lottery in Malaysia is generally restricted in Malaysia. ## Lotteries for philanthropic purposes A person can only promote private or public lottery in Malaysia if they possess a valid permit granted by the Minister of Finance. The Lotteries Act 1952 governs the grant of permits for promotion of a lottery for philanthropic purposes only. Section 4 of the LA stipulates that the Minister of Finance may, subject to his discretion, grant a permit for the promotion of a public or private lottery to a person or society for philanthropic, religious, educational purposes, any specific work beneficial to the community or for charitable purposes. It is a strict requirement that funds raised via promotion of lottery shall not be used for purposes associated with the religion of Islam. An application for a permit under Section 4 of the LA shall be made in writing, in duplicate and in the form specified in the Schedule to the Lotteries (Application for Permit) Regulations 1953 (hereinafter referred to as “1953 Regulations”). The grant of a promotion permit shall be subject to two conditions, which are that no profit shall accrue to any individual person from the promotion of the lottery and that the entire proceeds of the lottery after deducting all disbursements as allowed in the permit including costs, expenses, and charges, shall be devoted to the purpose for which the lottery is promoted. The Minister of Finance may impose any other conditions relating to the promotion of the lottery as he thinks fit. Further, the promoter of a public lottery, on promotion of the lottery, is required to publish a prospectus of the lottery detailing the general or special purposes for which the funds raised will be applied, the amount and number of prizes offered, the number of tickets or chances offered for sale and the price thereof, the opening and closing dates for the sale or distribution of tickets or chances, the times, places and manner in which the winners shall be determined and the conditions subject to which the tickets or chances will be offered for sale. Promotion of lottery without the aforementioned permit or in violation of the permit’s conditions is unlawful and an offence pursuant to Section 10 of the LA punishable with imprisonment of up to three years, a fine not exceeding RM 10,000, or both. Abetting commission of this offence is similarly punishable. ## Lotteries for commercial purposes The Minister of Finance has no discretion under the LA to grant permits for promotion of lotteries for purposes other than those stated in Section 4 of the LA. Instead, this power is conferred on the Minister of Finance by virtue of Section 27A of the CGHA 1953 and is specific to corporations, thereby excluding individuals. ## Pari-mutuel lotteries Please see the section on “Betting Marketing” above, specifically on Section 18 of the PBA 1967. ## Horse race NFT lotteries The RTBA 1961 is generally silent on the advertisement of these lotteries, other than that provided under Section 23 of the RTBA. For more on Section 23 of the RTBA, please see the section on “Betting Marketing” above. The announcement or publishing of the result of a horse race is generally an offence under Section 6A of the CGHA, with certain exceptions provided under Section 6A(2).

The Online Safety Act 2025 (Act 866) came into force on 1 January 2026, with its Risk Mitigation and Child Protection Codes taking effect on 1 June 2026. This is a binding statutory instrument operating under the existing Communications and Multimedia Act 1998 architecture, not a gambling-specific law. It shifts responsibility for harmful online content onto licensed application and content service providers, giving the Malaysian Communications and Multimedia Commission an adjacent regulatory lever over gambling-related digital content and promotion that operates independently of any dedicated gambling-law reform. For an operator, this means the Commission's toolkit against gambling-adjacent digital promotion has expanded even though no gambling-specific technical-compliance instrument itself changed, and intermediary and platform liability exposure connected to gambling content should be read against this now in-force framework rather than assumed unchanged.

In terms of infrastructure, the CGHA does not impose regulations specifically addressing the essential facilities, systems, and services that support the operation and regulation of gambling activities. The Act primarily focuses on the legal aspects of gaming and betting activities, without mandating requirements for physical facilities, technology systems, regulatory frameworks, communication networks, or support services essential for the gambling industry's infrastructure.

## Regulating bodies The MOF and the Royal Malaysian Police (“Police”) are the main authority involved in regulating the gambling sector in Malaysia; whilst the Malaysian Commission and Multimedia Commission has the authority to block and take down illegal online gambling websites (where this will be further elaborated on below under “Marketing Overview”). ## Supervision by Regulator For licensed gambling, supervision is exercised over such licensees by the MOF by imposing certain licence conditions that the MOF deems necessary, such as conditions fixing the kind of gambling or betting, games of chance or lotteries involved in providing the gambling service, conditions regarding advertising, or conditions regarding the management of the gambling service etc. For unlicensed gambling, the Police will act on complaints made by members of the public on gambling activities which appear to be illegal. The Police will then take the necessary action against the operators of such gambling activities after conducting its own investigations. ## Enforcement against licensed operators As of the date of this report is produced, there has been no news about enforcement by authorities against licensed operators for flouting the gaming laws in Malaysia. ## Typical triggers for enforcement against unlicensed operators The Malaysian Police Force are deployed in areas in which illegal gambling activities are carried out, be it online and physical gambling activities. As discussed in “Software / B2B Overview”, the enforcement actions taken by the Police to tackle online gambling activities have been contrary to the Malaysian High Court decision in Multi Electrical. For online gambling, Malaysian local newspaper, the New Straits Times has recently reported instances of police apprehending unlicensed online gambling operators in the state of Kelantan. Furthermore, the enforcement action has also been taken against the online gambling advertising activities. According to The Star, a total of 27 influencers have also been arrested for suspicion of promoting illegal online gambling sites, and the MCMC has always been active in removing and blocking of content involving online gambling in Malaysia. Currently, online gambling conducted from outside Malaysia, but targeting the Malaysian market and users without local infrastructure, is likely to be more defensible under Malaysian gaming legislation. However, enforcement actions have still occurred in some cases. The use of local infrastructure would likely to increase legal risks, although there are still some uncertainties and legal arguments that could potentially support these activities. The Police had also arrested 84 individuals on suspicion of developing online gambling apps for foreign markets. We have not observed any extra-territorial enforcement actions related to online gambling in Malaysia, such as arrest warrants, fines against individuals, or travel bans. Most of the enforcement actions to date have been targeted at operators with a local presence. Offshore operators generally mitigate their risk by maintaining no local presence and minimal marketing activities, depending on the game mechanics. ## Enforcement action taken against unlicensed operators ## Search and Seizure Under Section 15 of the CGHA, Authorized police officers, with written permission from the Commissioner of Police or Chief Police Officer, may enter any premises where labourers in mining, agriculture, or any other labour declared under Section 13 of the CGHA. This authority can be exercised at any time, day or night, to verify adherence to the CGHA Act. Additionally, under Section 16, a Magistrate, Justice of the Peace, or senior police officer, upon receiving written information and conducting necessary inquiries, can issue a warrant to search premises suspected of operating as common gaming houses. The warrant authorizes entry, search of the premises and individuals present, and seizure of gaming instruments, money, and other related items. Any items found to be used for gaming will be forfeited to the Government upon the Magistrate's determination. Furthermore, under Section 15A, the Officer in Charge of a Police District has the power to close any premises or part of a premises if there is reasonable belief that it is being used for gaming. This proactive measure allows the officer to take immediate steps to prevent illegal gaming activities. ## Forfeiture of Seized Gaming Machines Gaming machines seized under this Act are liable to forfeiture. The court will order forfeiture if it is proven that an offence involving these machines has occurred. In cases where no prosecution is pursued, the machines are automatically forfeited after 14 days from the notice date unless a claim is made. The Magistrate will then decide on such claims. Once forfeited, these machines are disposed of according to the Magistrate's directions, and the police are not liable for any damage to the machines. ## Employer’s Power to Arrest and Responsibility to Oversee Under the Section 13 of the CGHA, employers and overseers are held accountable for offences committed by their employees while engaged in mining, agriculture, or other labour on premises owned or occupied by the employer. If an employee commits an offence under this Act, the employer is liable unless they can prove they were unaware and had taken reasonable preventive measures. This liability extends to situations where a contractor hires labourers for work execution, deeming the labourers employed by both the contractor and the employer. Similarly, overseers or other authorities present during the offence are also liable unless they prove the offence occurred without their consent and despite their preventive efforts. Whereas, under Section 14 of the CGHA, the Employers have the authority to arrest without a warrant any employee found committing an offence under this Act on their premises. In the employer's absence, an authorized representative can perform the arrest. Arrested individuals must be handed over to the police without delay for further action by a Magistrate. Fines and imprisonment Section 4 of the CGHA outlines various offences related to the operation and promotion of common gaming houses associated with illegal gaming establishments. This includes owning, occupying, or using a place as a common gaming house, as well as permitting another person to use one's premises for such purposes. Additionally, managing or assisting in the management of a common gaming house is prohibited as well. The CGHA also targets those who publish or announce information indicating that a place is used as a common gaming house, or who invite others to participate in illegal gaming activities. Furthermore, conducting or promoting competitions, either through newspapers, periodicals, or any other medium, where the outcome depends on predicting future events or past events not yet known, is an offence, and it includes any competition where success does not substantially depend on skill. Penalties for these offences would include fines ranging from RM5,000.00 to RM50,000.00, imprisonment for up to three (3) years, and additional fines between RM5,000.00 and RM50,000.00 for each gaming machine seized. Betting The Betting Act 1953 outlines various enforcement powers related to betting activities. Order for demolition of structural contrivances for facilitating betting Section 11 empowers a Magistrate to order the demolition of structural modifications, such as staircases or partitions, designed to facilitate betting in a common betting house. Search Warrant against Premises and Persons Section 12 allows a Magistrate, Justice of the Peace, or Senior Police Officer to issue a search warrant for premises suspected of being used as a common betting house. This includes the authority to search the premises and individuals found there, seize relevant betting materials, and detain persons until a thorough search is conducted. If presumptive evidence of guilt is found, those present can be arrested and taken before a Magistrate. Items used for betting found on the premises or individuals are forfeited to the Government. Further, Section 13 permits a Magistrate, Justice of the Peace, or Senior Police Officer to issue a search warrant for any person suspected of possessing betting-related materials, allowing police officers to arrest and search such individuals. Arrest and search upon suspicion Section 13A gives police officers the authority to arrest and search individuals on reasonable suspicion without a warrant if there is a risk of the suspect escaping before a formal report can be made. If betting-related items are found, the suspect is taken before a Senior Police Officer for legal processing. Match-fixing and coordinated efforts Match-fixing, while not a gambling activity, is closely tied to betting where bets are placed with knowledge of the pre-determined winning party. The Malaysian Anti-Corruption Commission (“MACC”) may investigate reports of corruption relating to sports players and events. However, as far as match-fixing is concerned, there has been no reported case law in Malaysia. In the field of football, the Football Association of Malaysia has banned a total of 84 players in a match-fixing scandal in 1994, and more than 100 players and coaches suspected of fixing the results of Malaysia Cup and Premier League matches were detained by the authorities for interrogation. Match-fixing also exist in Malaysia eSports. The New Straits Times has reported that eSports player Nik "Dominus" Muhyyiddin has been banned for a year for attempted match-fixing and has been suspended by the Mobile Legends: Bang Bang Professional League (MPL) Malaysia. However, the MACC and the relevant gaming enforcement authorities were not involved in the investigation. Lotteries ## Lotteries Act 1952 Section 11 of the LA, a Magistrate may issue a search warrant if there is reasonable suspicion that premises are being used for illegal lottery activities. The warrant authorizes a police officer to enter the premises within one month, using force if necessary, and to search for and seize any documents, money, valuable items, or machines that may be used for illegal lottery activities. Pool Betting Act 1967 (Revised 2018) The PBA also provides specific powers to police officers regarding the enforcement of regulations related to pool betting. Under Section 23 of the PBA, any police officer not below the rank of Inspector has the authority to arrest without a warrant any person suspected of committing an offence under Sections 21 or 22 of the Act and bring them before a Magistrate. Further, Section 24 grants police officers of the same rank the power to enter premises where any totalisator for pool betting or pool betting agency is operated or managed, for the purpose of inspection. During such inspections, officers can examine books, accounts, records, documents, machines, or equipment used in the operation of the totalisator or agency. They are also authorized to seize any of these items if they have reasonable cause to believe they are evidence of an offence under the Act. Furthermore, officers can demand any necessary information from individuals responsible for the care and management of the totalisator or agency to facilitate the inspection. Additionally, as of the date of this report is produced, there has been no report on enforcement action taken against messenger or syndicate lottery services provider who buy tickets locally on behalf of foreign customers.