Gambling Laws in Malaysia

Malaysia's legal system comprises of two frameworks: the Islam-based Sharia law and the secular law for all non-Muslims. Since Islam forbids gambling and most of Malaysia's population is Muslim, it's no surprise that most activities are illegal. However, that's not the end of the story - read on to learn more.

Which Gambling Activities Are Legal in Malaysia?

When you consider that gambling is not permitted under Islam, you can easily assume that the situation is pretty cut and dried in Malaysia. However, a few activities are permitted by law, mostly for the benefit of the non-Muslim population.

Wagering on Online and Offline Casino Games

The Betting Act of 1953 made all gaming houses illegal, with stiff punishments for owners and those caught gambling in one. The only exception is the Resorts World Genting casino, which features over 400 RNG table games, 3,000+ slot machines and 30 traditional live games such as blackjack, roulette and Sic Bo. Entry to the venue is limited to non-Muslims and those over 21.

While gambling is largely illegal many residents have no trouble accessing popular online casinos based outside of the country. The government does take action to prevent this though, usually by ordering banks to stop allowing transfers to such sites.

Real Money Poker

The Common Gaming Houses Act of 1953 defines gambling as "playing any game of chance or mixed chance and skill for money or money's worth". Under this definition, poker is therefore illegal. The same situation applies to online poker, although residents have no problems signing up for top Malaysian online casinos that offer a variety of games and tournaments.

Gambling on Bingo

Bingo is another form of gambling which is not permitted. Online bingo gambling is also illegal, but plenty of residents still head to offshore sites to play. There are numerous operators which accept members from Malaysia, even though they could face being fined for doing so.

Playing Lotto Games

The Lotteries Act of 1952 permits the running of draws and there are currently six privately owned lotto companies. However, several illegal lotteries also operate in the country. It's reported that these operations bring in approximately 60% more revenue than the six legal companies combined. Despite the country's more lenient legal stance towards this gambling activity - playing online lottery games for real money is still illegal in Malaysia.

Social Gambling and Online Crypto Casinos

Gambling in private residences is strictly forbidden, with players facing harsh penalties if caught doing this. Loot boxes within games are not mentioned in current laws though it's safe to assume they are also illegal. Social casinos which offer players an assortment of free online slots to play with fake chips and credits are also in a grey area. If money is money is not being used in any way - then they are permitted.

Cryptocurrencies are yet to be classed as legal tender in Malaysia. Though it's perfectly fine to purchase goods and trade them. When it comes down to crypto gambling sites - these are forbidden. Instead, residents head to offshore platforms to place bets and wager with their favourite virtual coins.

Is Sports Betting Legal in Malaysia?

Residents are largely out of luck once again when it comes to this, with almost all types of markets being illegal. The only permitted activity is horse racing. This is covered under the Racing Act of 1961 but only onsite betting at a racetrack is legal. It's also illegal for residents to bet on sports online.

What's the Minimum Age to Gamble in Malaysia?

To participate in the country's few legal gambling activities, you must be 21 years or older and not Muslim.

Malaysian Gambling Tax Regulations - Do Players Pay?

Nope - all gambling winnings are entirely tax-free for residents. The same cannot be said for the operators who must pay 35% of their tax revenue.

History of Gambling Laws in Malaysia

Malaysia's gambling history began in the 19th century when Chinese merchants introduced it during their travels. However, due to the country's majority Muslim population, gambling in almost all types was and still is illegal under Sharia Law.

This harsh stance was written into law in 1953 with the Betting Act and the Common Gaming Houses Act. These defined gambling and outlawed any such activities, punishable by a hefty fine and a prison term of up to 5 years.

The 1952 Lotteries Act allowed for the legal operation of 6 privately owned lotteries.

After the Brits introduced horse racing in the 1800s, betting on the popular sport was legalised with the Racing Act of 1961. This is only permitted at one of the country's three racecourses though.

Key Facts

The main point to remember about Malaysia's gambling laws is that most activites are illegal. The only exceptions are:

• The Resorts World Genting land-based casino (Players must be aged 21 years or over to enter and not be Muslim).

• On-track horse race betting.

• Licensed lotteries.

Online gambling isn't specified in current laws but is generally considered illegal.