Regulatory AuthorityMinistry of Finance (Betting Control Unit), Malaysian Communications and Multimedia Commission (MCMC)
License CostVaries
Regulation by Activity Type
Casinos
Prohibited
Online Casinos
Prohibited
Betting
Prohibited
Online Betting
Prohibited
Lotteries
Regulated
Poker
Prohibited
Highlights
Malaysia’s main gambling laws are the Betting Act 1953, Common Gaming Houses Act 1953, and Lotteries Act 1952.
Only one land-based casino is licensed in Malaysia—Resorts World Genting—creating a de facto monopoly.
Muslims are strictly prohibited from gambling under Sharia law, but non-Muslims may access licensed gambling options.
Online gambling is technically illegal and unregulated, though foreign platforms widely serve Malaysian players.
Licenses for legal gambling are issued by the Ministry of Finance’s Betting Control Unit; unlicensed gambling is heavily penalized.
The government is considering major legislative updates to address online gambling, with stricter penalties and expanded regulator powers.
Legal gambling operators are subject to taxation, but illegal online gambling causes significant tax revenue losses for the state.
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Legislation
Primary Legislation
Malaysia’s gambling sector is governed by a combination of secular statutes and, for Muslims, Sharia law. The core legal framework consists of several key acts:
Betting Act 1953: This is the principal statute regulating betting activities. It prohibits all forms of betting and bookmaking unless specifically licensed by the government. The Act covers both physical and remote (telecommunications) betting, with amendments made over the years to strengthen enforcement.
Common Gaming Houses Act 1953: This act broadly defines and prohibits gaming houses and public gaming unless licensed. It covers any game of chance or mixed chance and skill played for money or money’s worth, and imposes penalties for operating or participating in illegal gaming houses.
Lotteries Act 1952: This act permits the operation of lotteries under government oversight, providing the legislative basis for legal lottery operators. It does not account for online lottery platforms.
Pool Betting Act 1967: This act specifically regulates pool betting, primarily in relation to horse racing, and sets out the licensing and operational framework for pool betting activities.
Sharia Law (Syariah Law): For Muslims, all forms of gambling are strictly prohibited under Sharia law, which is enforced through the Syariah courts. Non-Muslims are subject to the secular legal system and not bound by Sharia prohibitions.
Communications and Multimedia Act 1998 (CMA): While not originally designed for gambling regulation, this act is increasingly relevant due to the rise of online gambling. Recent and proposed amendments aim to expand regulatory and enforcement powers over online gambling, including stricter penalties and enhanced authority for the relevant commission to monitor and act against illegal online gambling activities.
Regulatory Authority
Oversight and enforcement of gambling laws in Malaysia are divided among several authorities, reflecting the dual legal system and the evolving nature of gambling activities:
Ministry of Finance – Betting Control Unit (Unit Kawalan Perjudian): This unit is responsible for issuing licenses and permits for legal gambling activities, including lotteries, casinos, and horse racing. It oversees compliance with the Betting Act, Common Gaming Houses Act, and Lotteries Act.
Malaysian Communications and Multimedia Commission (MCMC): The MCMC is empowered under the Communications and Multimedia Act to regulate and enforce laws related to online activities, including online gambling. Proposed legislative amendments seek to further expand its powers to combat illegal online gambling and related cybercrimes.
Syariah Courts: These courts have jurisdiction over Muslims in Malaysia and enforce Sharia law, including the prohibition of all gambling activities for Muslims.
License Types
Types of Gambling Licenses Available in Malaysia
Casino License: Currently, there is only one casino license issued in Malaysia, held by Resorts World Genting. This license covers all standard casino games and is a de facto monopoly.
Lottery Licenses: Private companies can apply for licenses to operate lotteries. As of now, six private lottery operators are licensed in Malaysia, each under the Lotteries Act 1952.
Horse Racing Betting Licenses: Licenses are granted to specific turf clubs to operate legal horse racing betting, governed by the Racing Act 1961 and Pool Betting Act 1967.
Application Process for Gambling Licenses
All gambling licenses are issued and regulated by the Betting Control Unit under the Ministry of Finance.
Applications must be submitted directly to the relevant government authority, typically requiring detailed business plans, background checks, and financial disclosures.
The process is highly selective, with very few new licenses granted. For casino operations, no new licenses have been issued since the original Genting Highlands approval.
Lottery and horse racing licenses are also limited in number and usually require strong financial standing and proven operational capacity.
Applicants must provide comprehensive documentation, including:
Company incorporation details
Directors’ and key personnel background checks
Financial statements and proof of capital
Security and anti-fraud measures
Operational procedures and responsible gambling policies
Duration, Renewal, and Eligibility
Duration: Licenses are typically issued for a fixed term, often ranging from 1 to 3 years for lotteries and horse racing, and longer for casino operations.
Renewal: Renewal is subject to strict compliance reviews, including financial audits and operational inspections. Renewal applications must be submitted before the license expiry date, and continued compliance with all regulatory requirements is mandatory.
Eligibility: Only companies incorporated in Malaysia with substantial financial resources and a proven track record in gaming or related industries are considered. Key personnel must pass rigorous background checks.
Licensing Costs and Financial Requirements
Casino License: The specific fee structure for the sole casino license is not publicly disclosed, but it involves substantial upfront and annual payments, as well as ongoing revenue-based contributions to the government.
Lottery Licenses: Lottery operators are required to pay significant application fees, annual license fees, and may also be subject to performance bonds or financial guarantees. The exact amounts are determined by the Ministry of Finance and can vary based on the operator’s scale.
Horse Racing Betting Licenses: Similar to lottery licenses, these require application fees, annual licensing fees, and financial guarantees.
Applicants must demonstrate strong financial health and provide evidence of sufficient capital to operate the business and cover potential liabilities.
Key Requirements for Obtaining and Maintaining Licenses
Strict adherence to anti-money laundering protocols and responsible gambling measures.
Comprehensive reporting and record-keeping obligations, including regular submission of financial and operational data to regulators.
Implementation of robust security and fraud prevention systems.
Ongoing compliance with all regulatory standards, including periodic audits and inspections by authorities.
Immediate reporting of any suspicious activities or breaches of regulations.
For online gambling, no licensing system currently exists, but legislative proposals are under discussion to introduce a regulated framework in the future.
Summary Table: Gambling Licensing in Malaysia
License Type
Availability
Application
Duration
Renewal
Costs
Key Requirements
Casino
1 (Resorts World Genting)
Direct to Ministry of Finance
Long-term
Subject to review
High, undisclosed
Financial strength, security, compliance
Lottery
6 private operators
Direct to Ministry of Finance
1-3 years
Compliance review
Significant fees and guarantees
Financial, operational, compliance
Horse Racing Betting
Specific turf clubs
Direct to Ministry of Finance
1-3 years
Compliance review
Significant fees and guarantees
Financial, operational, compliance
Online Gambling
Not licensed (proposed reforms)
N/A
N/A
N/A
N/A
N/A
Currently, Malaysia maintains a highly restrictive licensing regime, with very few licenses granted and no open licensing for online gambling. All applications are subject to strict government scrutiny, and only well-established, financially robust companies are considered. Proposed reforms may introduce new licensing categories in the future, but as of now, the system remains closed and tightly controlled.
Gambling Tax
Tax Rates for Gambling Operators in Malaysia
Type of Gambling Operation
Tax/Duty Rate
Basis for Taxation
Casino (Resorts World Genting)
35% Casino Duty
Gross Gaming Revenue (GGR)
Gaming Machines (within Casino)
30% Duty
Gross Collection
Number Forecast Operators (NFOs) / Lotteries
8% Gaming Tax
8% Pool Betting Duty
Gross Sales (Gaming Tax)
Net Sales (Pool Betting Duty)
Horse Racing Betting
8% Gaming Tax
8% Pool Betting Duty
Gross Sales (Gaming Tax)
Net Sales (Pool Betting Duty)
Service Tax (all gambling services)
6%
Net Takings (bets received minus payouts and other taxes/duties)
Basis for Taxation
Casino Duty: Applied to the gross gaming revenue, which is the total bets received minus winnings paid out by the casino.
Gaming Machine Duty: Levied on the gross collection from gaming machines within the casino premises.
Gaming Tax (NFOs, Lotteries, Horse Racing): Calculated on gross sales, i.e., the total amount wagered by players.
Pool Betting Duty: Calculated on net sales, which is gross sales minus payouts to winners.
Service Tax: Applied at 6% on the value of services, defined as net takings after deducting payouts and statutory taxes/duties from total bets received.
Tax Reporting and Payment Requirements
Operators must maintain detailed records of all bets received, winnings paid, and taxes/duties deducted.
Taxable amounts for gaming tax, pool betting duty, and service tax must be calculated for each draw or gaming period.
Service tax returns must be filed and paid bi-monthly (every two months) to the Royal Malaysian Customs Department.
Gaming taxes and duties are typically remitted to the relevant authorities on a regular basis, as stipulated in the respective acts and regulations.
Operators are also subject to standard corporate income tax on their net profits at the prevailing rate (currently 24%).
For NFOs, an additional 10% of pre-tax profits must be contributed to the National Sports Council.
Tax Incentives, Exemptions, and Special Provisions
As of Budget 2023, a reinvestment allowance of 60% on qualifying capital expenditure is available for a period of five consecutive years, offset against up to 70% of statutory income. This applies to qualifying investments and is not specific to gambling, but gambling operators may benefit if they meet the criteria.
No specific exemptions from gaming taxes or duties are provided for gambling operators.
There are no tax incentives directly targeted at gambling operators beyond general corporate tax incentives available to all Malaysian companies.
Prohibited Individuals
Age Restrictions and Identification Requirements
The minimum legal age for gambling in Malaysia is 21 years old for all licensed gambling activities, including entry to the country’s sole legal casino and participation in lotteries.
Operators are required to verify the age and identity of all players before allowing participation. Identification documents, such as the national ID card or passport, must be presented at land-based venues.
Muslim citizens are strictly prohibited from participating in any form of gambling, regardless of age, in accordance with Sharia law. Entry to gambling venues is denied to Muslims, and identification checks are used to enforce this restriction.
Prohibited Gambling Activities and Game Restrictions
All forms of gambling are prohibited unless specifically licensed by the government. Unlicensed gambling, including private gaming houses and online gambling, is illegal.
Online gambling is not permitted under Malaysian law, and there are no licensed online gambling operators based in the country. Access to illegal online gambling platforms is actively blocked by authorities, and financial transactions to such sites are restricted.
Sports betting is generally forbidden, except for limited horse racing bets at licensed tracks. All other forms of sports betting, including football and eSports, are prohibited.
Muslims are banned from all gambling activities, including state-licensed lotteries and casino games, under Sharia law.
Some regions, such as the state of Kedah, have enacted stricter local prohibitions, including bans on lottery sales points.
Advertising and Marketing Limitations
Advertising and promotion of gambling services are heavily restricted. Only licensed operators may advertise, and all marketing must comply with strict content guidelines.
Advertising gambling to Muslims is strictly forbidden. Marketing materials must not target or depict Muslims, and must avoid content that could appeal to minors or vulnerable groups.
Online advertising of gambling, including on social media and messaging platforms, is closely monitored. Authorities have powers to remove illegal gambling promotions and penalize those who promote unlicensed gambling, including influencers and media outlets.
Operators are prohibited from making misleading claims about winning odds or encouraging excessive gambling behavior in their advertisements.
Responsible Gambling and Player Protection Measures
Licensed operators are required to implement responsible gambling measures, including clear messaging about the risks of gambling and the odds of games.
Self-exclusion programs must be available, allowing players to voluntarily ban themselves from gambling venues or activities.
Operators must provide information on problem gambling support services and helplines at gambling venues and on marketing materials.
Staff at licensed venues are trained to identify and assist individuals displaying signs of problem gambling.
Strict limits are placed on credit extension and cash advances within gambling venues to prevent excessive gambling.
Operators must maintain secure and confidential records of player activity to monitor for signs of risky behavior and ensure compliance with exclusion lists.
Geographic and Location Restrictions
Land-based casino gambling is permitted only at the licensed Resorts World Genting, located in the Genting Highlands. No other casinos are authorized to operate in Malaysia.
Lotteries and horse racing are limited to licensed venues and designated sales points. Local authorities may impose additional restrictions, including complete bans in certain states or municipalities.
Gambling venues must be physically separated from places of worship, schools, and areas frequented by minors.
Remote or mobile gambling operations are not permitted under Malaysian law, and authorities take action to shut down illegal gambling outlets, including those operating in small stalls or convenience stores.
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Timeline
Year/Date
Event
1952
Lotteries Act enacted, legalizing and regulating lotteries in Malaysia.
1953
Betting Act and Common Gaming Houses Act introduced, prohibiting most forms of gambling except where specifically licensed.
1961
Racing Act passed, legalizing and regulating betting on horse racing.
1969
First and only casino license granted to Genting Highlands, establishing Resorts World Genting as Malaysia’s sole legal casino.
2006
Last major amendment to the Betting Act 1953, updating certain provisions but not addressing online gambling.
2020
Government considers liberalizing online gambling regulations due to tax revenue losses from illegal offshore operators.
2021
Announcement of plans to develop new regulations and a licensing system for online gambling operators to replace outdated laws.
2023
Kedah state bans 4D lottery outlets, signaling a more conservative approach in some regions; nationwide crackdown on illegal gambling follows.
2024
Malaysian government tables a bill to amend the Communications and Multimedia Act 1998, aiming to increase regulatory powers and penalties for online gambling and related cybercrimes.
Requirements
Software Certification and Technical Standards Requirements
All gambling software used by licensed operators must be certified for fairness, randomness, and security by recognized testing laboratories. This includes the use of certified Random Number Generators (RNGs) and regular third-party audits to ensure ongoing compliance with technical standards.
Gaming systems must be robust, with secure architecture to prevent tampering, fraud, or unauthorized access. Technical infrastructure should support real-time monitoring and logging of all gaming transactions and events.
Operators are required to implement strong cybersecurity measures, including encryption of data in transit and at rest, secure authentication protocols, and regular vulnerability assessments.
Systems must be capable of generating detailed audit trails for all gaming activities, which must be accessible to regulatory authorities upon request.
Data Protection, Privacy Measures, and Server Location Requirements
Operators must ensure compliance with Malaysian data protection laws, which require the safeguarding of personal and financial information of players through encryption, secure storage, and access controls.
User data must be stored securely, with access restricted to authorized personnel only. Operators should implement regular data privacy audits and risk assessments.
There are currently no explicit requirements for server location under existing Malaysian gambling law, but pending legislative updates may introduce obligations for local data storage or require that servers be accessible for regulatory inspection and auditing.
Operators may be required to cooperate with authorities by providing user data for investigations related to illegal gambling or cybercrime.
Anti-Money Laundering (AML) and Know Your Customer (KYC) Procedures
Operators must implement comprehensive AML programs, including transaction monitoring, reporting of suspicious activities, and regular staff training on AML compliance.
Strict KYC procedures are mandatory, requiring verification of player identity, age, and source of funds before allowing participation in gambling activities. This typically involves collecting and verifying government-issued identification and proof of address.
Operators must maintain records of all KYC checks and report any suspicious transactions to the relevant authorities as required by Malaysian AML regulations.
Enhanced due diligence is required for high-risk customers or transactions, including additional verification steps and ongoing monitoring.
Financial Reporting, Auditing Standards, and Record-Keeping Requirements
Operators are required to maintain accurate and up-to-date financial records, including detailed logs of all player transactions, deposits, withdrawals, and game outcomes.
Regular independent financial audits must be conducted to ensure transparency and compliance with regulatory requirements. Audit reports must be made available to the relevant authorities upon request.
Operators must retain all records related to gaming activity, financial transactions, and customer interactions for a minimum period as specified by the authorities (typically several years).
Systems must be capable of generating comprehensive financial reports, including real-time monitoring of transactions for regulatory review.
Technical Implementation Requirements for Responsible Gambling Tools
Operators must integrate responsible gambling features into their platforms, such as self-exclusion options, deposit and loss limits, and reality checks to remind players of their gaming activity duration.
Systems must allow players to set personal limits on spending and session time, and provide clear access to responsible gambling resources and support services.
Operators are required to monitor player behavior for signs of problem gambling and intervene where necessary, including providing warnings or restricting access to gambling services.
All responsible gambling tools must be accessible, easy to use, and clearly communicated to players within the platform interface.
Gambling regulations are subject to change. The information provided on this page was accurate at the time of publication, but may not reflect the current regulatory landscape. Always consult official sources for the most up-to-date information before making any gambling-related decisions.
