Malaysia Plans Legislative Measures to Combat Online Gambling Surge

Photo by Wikimedia Commons, CC BY-SA 3.0
Key Takeaways
- Online gambling remains largely unregulated under current laws
- Police conducted 4,750 raids and arrested nearly 5,000 people
- A recent raid uncovered a mini casino operating in Sentul
Malaysia’s Home Ministry is reassessing its legal framework in light of the rising cases of illegal online gambling. Home Minister Datuk Seri Saifuddin Nasution Ismail announced that the government is contemplating stronger laws based on police recommendations. This comes amid growing concerns about gambling activities spreading, particularly in rural regions.
In a parliamentary response, Saifuddin highlighted the necessity to modernize outdated legislation, stating, “The police have proposed a review of existing laws to ensure they remain relevant in addressing the evolving nature of online gambling.” The Home Ministry is collaborating with various agencies to amend the Common Gaming Houses Act 1953 and include online gambling provisions in the Cyber Crime Bill.
Malaysian Law Enforcement Challenges Persist
Saifuddin highlighted the ongoing challenges posed by illegal online gambling. He cited enforcement statistics that reveal police conducted 4,750 raids and arrested 4,992 individuals from 2022 to 2025. During this period, authorities seized RM740,000 (approximately US$185,000) and requested the Malaysian Communications and Multimedia Commission (MCMC) to block 1,477 gambling websites.
These figures indicate illegal gambling’s persistence by adapting to decentralized and technology-centered evasion methods.
While discussions about legalizing online gambling have occurred, the Home Minister emphasized that the focus remains on enhancing enforcement and modernizing existing laws to tackle these evolving threats effectively.
Adaptation of Illegal Operations
Recent enforcement actions have underscored the adaptability of illegal gambling in Malaysia. On January 22, police conducted a raid on a condominium in Sentul, which had been functioning as a mini casino since November. The operation was led by the Kuala Lumpur Criminal Investigation Department’s Crime Smuggling, Gambling, and Gangsterism Division. It resulted in the detention of 18 people, including 14 local men, two women, and two foreign nationals from Vietnam and Thailand.
According to the Kuala Lumpur Criminal CID, “The mini casino operation was not masterminded by any syndicate, and the rented premises were only for close contacts or specific invites to avoid detection by the police.” Authorities seized gambling equipment valued at RM19,325 (approximately US$4,830). Investigations are ongoing.
Current Regulatory Framework in Malaysia
Malaysia’s gambling sector is regulated at the federal level, with lotteries and pool betting overseen by the Betting Act 1953 and the Common Gaming Houses Act 1953. The Ministry of Finance issues and monitors all gambling licenses, and any unlicensed operations are illegal. Currently, online gambling is not explicitly covered by existing laws, resulting in significant regulatory gaps.
Lucas Michael Dunn is a prolific iGaming content writer with 8+ years of experience dissecting it all, from game and casino reviews to industry news, blogs, and guides. A psychology graduate and painter that transitioned into the iGaming world, his articles depend on proven data and tested insights to educate readers on the best gambling approaches. Beyond iGaming content craftsmanship, Lucas is an avid advocate for responsible play, focusing on empowering players to strike a balance between thrill and informed choices.
Related News

Australia Tightens Gambling Rules With Red-Flag System and Adstop Register
Australia has passed new gambling reforms adding stronger protections for vulnerable bettors, including Adstop and tighter inducement rules.

Ohio Gubernatorial Candidate Supports Online Casino Legalization
The Democrat publicly declaring her support for iGaming means that Ohio could head down a path mostly untraveled by other states.

UK betUK betting and gaming duties reach record £3.83bn in 2025/26ting and gaming duties reach record £3.83bn in 2025/26
UK betting and gaming duty receipts increased by £215m during 2025/26, reaching the highest level in HMRC’s 20-year data series.

UK betting and gaming tax receipts rise 19% to £1.93bn in four months
UK betting and gaming duty receipts reached £1.93bn between April and July 2026, with a sharp rise in July lifting the total 19% year on year.

Ruth Evans appointed Gambling Commission chair for five-year term
Consumer protection specialist Ruth Evans will begin a five-year term as Gambling Commission chair on 30 September, succeeding Charles Counsell.

FCA holds talks over easing UK ban on retail prediction markets
The FCA has reportedly discussed easing the UK ban on retail prediction markets, although any operator may also need a gambling licence.

Europe’s illegal online gambling market tripled to €12bn in 2025
Euromat-commissioned research claims Europe’s illegal online gambling market generated €12bn in net revenue and tripled since 2019.

UK Treasury considers 40% duty rate for land-based gambling machines
Chancellor John Healey is reportedly considering raising Machine Games Duty, potentially increasing costs for casinos, betting shops and AGCs.

VGW to Pay New York AG $8 Million for Illegal Sweepstakes Casino
Popular VGW-powered platforms included Chumba Casino, Global Poker and Luckyland Slots, all of which used a dual-currency model.

Chicago Committee Not Buying Bally’s Casino Delays Due to VGTs
Executive members of the company told the Chicago Council License Committee that it would be “irresponsible” to continue development as originally planned.

Maryland Reports Fourth Straight Month of YoY Casino Decline
2026 casino revenue through August sits just under $1.3 billion. That has still created $68.5 million in funding for the state and public programs.

Kalshi, Catalist Sports Reannounce Live-Streaming Partnership
Kalshi and Catalist Sports have reannounced their streaming deal with new language addressing regulatory requirements.

Google autocomplete could steer Dutch players to illegal casinos
Dutch affiliate group KVA has urged Google to address search suggestions that appear to promote casinos operating outside the regulated market.

Fraud specialist Ruth Evans appointed Gambling Commission chair
Stop Scams UK chair Ruth Evans will begin a five-year term leading Britain’s gambling regulator on 30 September.

bet365 Sportsbook Launches in Washington, D.C.
bet365 Sportsbook is now live in Washington, D.C., expanding the operator's U.S. presence to 19 markets.

NFL Warns Prediction Markets to Stop Offering 'Objectionable' Contracts
The NFL is urging prediction markets to remove contracts it says could threaten the integrity of its games.

Indiana Hollywood Casino Robber Sentenced to 52 Years in Prison
Security cameras captured footage of the incident, including Birdseye pointing his weapon at an employee’s chest from about one foot away.

Canadian Lottery Coalition Pushes Back on Prediction Markets
Canada's securities regulators cleared prediction markets on sports outcomes, but provincial lottery corporations say the guidance doesn't go far enough.

Games Global Enters Alberta's Regulated iGaming Market
Alberta becomes Games Global's second regulated Canadian market, following AGLC registration and years of operation in Ontario.

Sidemen Post Las Vegas Adventure as Gambling Content Booms
The video, which amassed over 3 million views in one day, shows the group completing a variety of challenges, including gambling $1,000 at a casino.

Nevada vs. Prediction Markets: NJ Takes Fight to SCOTUS
Nevada's gaming board calls prediction markets illegal gambling as New Jersey petitions the Supreme Court to resolve a growing legal battle.

Bally’s CFO Resigns As Chicago Casino, Financial Woes Pile
Bally’s said the decision was down to “personal reasons” and did not tie her departure to the company’s recent struggles.

Entain drops out of FTSE 100 following fall in market value
Entain will leave the FTSE 100 after six years as its falling valuation places the Ladbrokes and Coral owner among London’s mid-sized companies.

Paddy Power reviews 100 UK and Irish shops as 400 jobs face risk
Flutter is reviewing almost one-fifth of Paddy Power’s betting shops as higher taxes and operating costs place approximately 400 jobs at risk.

Dutch Lottery forces illegal casino Skyhills out of Netherlands
Skyhills became inaccessible in the Netherlands after Nederlandse Loterij targeted companies and directors linked to the casino.

Pennsylvania iGaming Player Wins $4.4 Million, Fourth-Largest Jackpot Ever
Progressive jackpots work by having players opt-in to the progressive pot, which is a pool built by other online players.

New Zealand Online Casino Licence Race Moves to Auction Stage
New Zealand’s online casino licensing process is moving into its next stage, with approved operators set to compete for the right to apply for one of up to 15 licences.

BetMGM Donates $320,000 to AGA’s Responsible Gaming Campaign
RGEM 2026 was designed to supply customers with the information they need to make informed and responsible decisions while avoiding problematic behaviors.

Fanatics Casino Launches in Ontario Without Sportsbook
Fanatics Casino has soft-launched in Ontario as the province's 50th iGaming operator, with sportsbook and Alberta entry planned for 2027.

NCA freezes £10m held by Premier League over reported Sorare payment
More than £10m held by the Premier League has been frozen while the NCA examines a payment reportedly made by crypto fantasy firm Sorare.

Daniel Smith lands two winners on return from five-year betting ban
Daniel Smith lands two winners on return from five-year betting ban

New York Dems Want Gov. Hochul to Nix “Excessive” 72% Casino Tax Rate
It already agreed to pay a high percentage of its revenue in taxes, although a state gaming body has argued that still isn’t enough.

Gambling Commission suspends BresBet and Bet St George licences
BresBet and Bet St George have had their UK licences suspended while the Gambling Commission investigates suspected compliance failings.

