Enforcement: How hard does the regulator enforce?

## 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.