Malaysia Gambling Laws – State & Sharia Gaming Law
The Malaysia gambling laws are constantly updating, and there are even attempts to make Malaysia online gambling legal. Until that happens, you can read about the current gambling legislation and legal games in this article. We will also tell you which casinos and racetracks are open for players at legal age.
Besides the Malaysia gambling law Common Gaming Houses Act 1953, in our article, we also provide information about the Betting Act and other regulations. Below, you can find this article’s main sections, whether you choose to skip to the most interesting topic to you or read from top to bottom. Those, who have no time even for that, can read the Q&A section at the end, where we answered important questions about gambling in Malaysia.
Malaysia Gambling Law & Other Gaming Legislation
Officially, Malaysia’s gambling history began in the 19th century with the Chinese merchants trading in those lands. It is hard to believe that there was no gaming or wagering of any sort before that, but since this is not a history of gambling article, we will leave the past in the past. Instead, we will turn your attention to the present and the future of gaming in the Land Below the Wind.
Today, both legal and illegal gambling is extremely popular. That is the reason why the government created laws and regulations. The first legislations were the Lotteries Act in 1952, followed by the Common Gaming Houses Act 1953 and Betting Act from the same year.
Later on appeared the Racing Act and now there are talks of legalising online gambling and making Malaysian online roulette sites and other gambling sites legal. Here is what the current laws regulate:
| 🥊 Betting Act 1953 | All forms of sports betting and bookmaking are illegal. Even outlaws the communications and bet transfers between customers and betting houses. |
| 🃏 Common Gaming Houses Act 1953 | Deals with every other form of gambling. Alongside this, the act criminalises operating illegal gaming houses and what happens with the players caught there. |
| 🕌 Sharia Law | The Sharia law forbids all forms of gambling and punishes all violators. |
| 🎱 Lotteries Act 1952 | Legalises the activities of six privately owned legal lotteries. |
| 🏇 Racing Act 1961 | Deals with all races and racetracks, including horse, car, motor, and other races. |
The Malaysian Constitution states that Islam is the mandatory religion for all Malays. This means that over 60% of the country’s population obey the government laws and the Sharia laws. Since Malaysia recognises Sharia courts, all Muslim gamblers caught gambling are punished by the relevant gambling law in Malaysia and by the religious laws.
Legal Gambling Age in Malaysia
If you have read our article dedicated to the gambling age around the world, you already know that every country has different regulations.
In the Land Below the Wind, players must be 21 years old to gamble at a casino or even buy a lottery ticket. The Malaysia gambling law states that players and operators who violate this regulation will be punished.
Gambling Taxes in Malaysia
We will start with the good news: any prizes from games of luck have 0% tax. This includes all forms of gambling, betting, lotteries, TV shows, competitions, and even inheritance.
The lack of a fee is due to a belief that those are considered windfall cash or capital gain, and therefore not taxable. Professional athletes who have won a competition also don’t pay taxes on the prize money.
On the other side of the spectre are the operators who now pay 35% gross gaming revenue. Not so long ago, the casinos’ tax was 25%, but the Covid-19 pandemic pushed the government to increase the tax for the Malaysian operators.
Gambling Crimes & Punishments in Malaysia
The Japan gambling laws are an example of strict legislation and ban almost all forms of gambling and wagering.
Malaysia’s legislation is not so strict, but there are still punishments for illegal gambling activities. Here are some examples:
- The Betting Act 1953 states that anyone caught operating or patronising an illegal betting house is fined up to RM 200,000, sentenced up to 5 years in jail, or both.
- The Common Gaming Houses Act 1953 is where player’s penalties are described. Anyone caught inside an illegal gaming or gambling establishment is subject to a fine of up to RM 100,000, a minimum sentence of 6 months in prison, or both.
- The Syariah Criminal Offences state that a Muslim caught gambling faces a fine up to RM 3000, imprisonment of up to 2 years, or both.
Considering all this, it is clear that Malaysian authorities are serious when dealing with gambling crimes. We recommend anyone who plans a vacation in Malaysia to visit only legal gambling establishments. There is plenty of other entertainment in this lovely country to keep you occupied and out of trouble.
Problem Gambling in Malaysia
There are health and legal definitions of “gambling disorder” and “pathological gambling”. Even so, there are no government structured gambling treatment facilities.
There are several private rehabilitation centers all around Malaysia that can help problem gamblers. Alternatively, anyone affected by gambling addiction can turn to Gamblers Anonymous and other similar international online institutions.
Unit Kawalan Perjudian (Betting Control Unit)
As we mentioned before, the gambling law in Malaysia allows gambling in legal and licensed locations. Any operator who wishes to open a gaming or betting location needs to gain a permit granted by the Unit Kawalan Perjudian of the Ministry of Finance. The Unit Kawalan Perjudian, also known as Betting Control Unit, approves and revokes licences.
Once an operator decides to gain a gambling permit, he must follow the procedure and fulfil the requirements. Besides the complete documentation, operators should pay the annual licence fee. The casino licence fee is MYR 150 million, while the gaming machine operator’s licence fee is MYR 50,000 a year.
After the licence is granted, the operators are regulated and checked regularly. Every violation is punished, and some severe gambling offences may lead to revoking the licence. All issues and illegal activities are investigated and dealt with by the Unit Kawalan Perjudian, the courts, and the Sharia law.
Legal Casinos & Racetracks in Malaysia
Malaysia gambling laws leave much space for legal gambling and gaming. Players can find many of the popular gambling games in licensed locations throughout the country. Here are the legal places where gamblers from near and far can place their stakes.
Malaysian Casinos & Racetracks
The Casino de Genting in the Genting Highlands Resort, called “Fun City Above The Clouds”, is the only legal casino in Malaysia. Even though it can’t measure up to the largest casino in the world, it is an amazing tourist destination high in the Titiwangsa Mountain Range. The casino has 400+ electronic table games, 3000+ slots, and 30+ table games, including roulette, blackjack, Tai Sai, and more.
Alternative entertainment is provided at the legal racetracks. According to the Common Gaming Houses Act 1953 and the rest of the gambling laws, punters can place stakes on horse racing, motor, and car races. Today, there are three legal racecourses. The betting and activity of racecourses are regulated by the Racing Act 1961.
Malaysia Online Gambling
If you are interested to know if online casinos are legal in many countries, we recommend you check out our article on the online gambling laws worldwide. Since in this article we are focusing on Malaysia, we will tell you that here online gambling is partially illegal, and at the same time, no player is prosecuted.
This contradiction is due to the fact that online gambling is not legalised by law. Since the gaming and gambling laws were written way before the era of online gambling, and there are no new rules, it is unclear whether it is legal to host or own an internet gambling site.
Players are not prosecuted for playing at offshore gambling sites. Such an opportunity for gambling profits can be dangerous for the players, especially if the site has no Malaysian licence or other certification. This means the country can’t protect its players and their cash if an illegal operator shuts down and holds all the cash. The only option is for players to go for online casinos licensed by government authorities like MGA and the UKGC.
Malaysia’s Legal & Illegal Gambling Games
In this section of our article, we will tell you the legal and illegal games in Malaysia. We will mention all games you can find at the local gaming houses and the casinos in the top gambling cities in Asia, including Macau and Singapore. In the table below, you can also see the popular Malaysia online gambling games and more:
In Malaysia, lotteries, casino games, horse racing, and various motorcycle, car, and bicycle races are legal. All social games where there is no cash prize attached are also available to players at legal age. Some of the popular competitions are Formula One Grand Prix and Motorcycle Grand Prix World Championships.
By default, everything that is not listed as a legal gambling game is considered illegal. Malaysia laws ban all forms of sports betting and bookmakers. Anyone caught breaking the law, whether operator or player, is punished accordingly.
The legality of online gambling is a topic of extended discussion because there is no law regulating or banning online gambling. Players take advantage of that situation and play at legal offshore gambling sites. Lately, betting on badminton, football, and other sports has become immensely popular alongside the standard online casino games.
Now that the government’s point is clear on the legal games and gaming locations, we can say that it is best to obey the law while you are in Truly Asia. If the available gaming opportunities are not enough, players can check the online roulette sites in Hong Kong. Since there are many talks about improving and expanding the gambling law in Malaysia, we will not be surprised if we can soon play at an online gambling site licensed by Malaysian authorities.
Malaysia Gambling Laws Q&A
The Malaysia gambling laws are constantly updated and expanded to meet the modern time. We collected and answered popular questions about Malaysia gaming and wagering. Every answer has a link to the relevant section of the article to find more information.
