title: Malaysia — Licensing and regulation: Can we get a licence? | advennt.io canonical: https://advennt.io/jurisdictions/malaysia/licensing/ [Jurisdictions](https://advennt.io/jurisdictions/) [Malaysia](https://advennt.io/jurisdictions/malaysia/) Licensing and regulation Malaysia · Question 02 of 11 # Licensing and regulation: Can we get a licence? Unfavourable · Confirmed · Expert approved · In expert review scope · [Back to full Malaysia report →](https://advennt.io/jurisdictions/malaysia/) Key section parameters | Jurisdiction | Malaysia (MY) | |---|---| | Regulator | Recorded in register | | Favourability | Unfavourable | | Confidence | Confirmed | | Review status | Expert approved · In expert review scope | | Last collected | 18 Oct 2026 | Summary answer 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 diff… ## Full section analysis 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of its gaming laws were enacted before Malaysian independence, and as such, the legal provisions are often archaic and outdated.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.