Located in Southeast Asia, Malaysia is home to an ethnographically complex population that currently stands at around 32.9 million people. The country’s religious composition is equally diverse, although Islam is the official religion, with approximately 61% of the nationals practicing it. Apart from Muslims, Malay society consists of Sri Lankan, Chinese, and Indian Malaysians, among other minority groups.
The country is a federal constitutional monarchy that comprises 13 states, known as Negeri, along with three federal territories, or Wilayah Persekutuan (Kuala Lumpur, Putrajaya, and Labuan). The history of this culturally diverse country can be traced back to the 3rd century AD when the first Malay kingdoms emerged. The British Empire established a solid presence in the region in the early 18th century. It was not until the late 1950s that the country fully regained its independence.
Gambling law is a complex matter in Malaysia as is the case in other multi-ethnic nations. The complexity largely arises from the fact the Islamic Sharia law strictly prohibits gambling. Malaysia’s Muslim population cannot legally enter gaming venues or engage in such activities. Despite this, gambling has gained social acceptance in the country, or at least among non-Muslim Malaysians.
Brick-and-mortar gambling is legal in Malaysia, but Resorts World Genting remains the only casino resort complex for the time being. Malaysia has several turf clubs and racecourses whose history dates back to the late 19th century. Landbased sports wagering also enjoys a legal status here as long as the bookmakers have acquired proper licenses. All forms of online gambling are still illegal in the country. The prohibition extends to all Malaysian nationals regardless of their religious beliefs.
Laws That Govern Gambling in Malaysia 3q711u
Several laws have helped shape Malaysia’s gambling industry as we know it today. The first and probably the most important piece of legislation that governs gambling activities in the country is the 1953 Betting Act (Akta Pertaruhan). It has seen several amendments over the years but its original purpose was to eliminate illegal betting houses and prevent betting in public places.
The 1953 Betting Act
The Common Gaming Houses Act of 1953
The Lotteries Act of 1952 and the Racing Act of 1961
The 1953 Betting Act 6c4ai
The 1953 Betting Act prohibits all forms of betting unless those who operate them have obtained proper licenses to do so. It provides a legal definition of the term “common betting house”, describing it as any site used for habitual wagering on sporting events like races, matches, and fights. The law refers to telecommunication systems which it describes as all systems people use to communicate over a distance, including telephones and telegraphs.
The legislation ed in the early 1950s so understandably it makes no direct references to internet technologies. Nonetheless, the wording is such that the law could possibly be applicable to online gambling. The legislation proceeds to state that running, leasing, and owning a common betting house is contrary to Malaysian law. As such, it is punishable upon conviction.
Individuals found guilty of this offense are liable for pecuniary sanctions, ranging from RM20,000 to RM200,000. Convicted persons can also end up in prison for a maximum term of five years. Further on in the text, it becomes apparent that wagering in one such common betting house is also a legal violation under the 1953 Act.
The punishment for Malays who commit this offense is a fine of up to RM5,000 or maximum imprisonment of up to half a year. The gambler might suffer both penalties in the worst-case scenario. The law presumes individuals found in unauthorized betting facilities have engaged in gambling there until their innocence is proven. Those who act as illegal bookmakers are liable for imprisonment of up to five years and pecuniary sanctions of up to RM200,000.
The 1953 Betting Act prohibits Malays from publishing the results of lotteries and horse races in print or announcing them orally. However, this prohibition does not apply to results published in newspapers licensed under the provisions of the Malay Printing Presses and Publications Act of 1984. The legislation also makes exceptions for the Totalizator Board operating under the Racing Act of 1961 and lotteries authorized under the Lotteries Act of 1952.
Police officials have the authority to inspect private premises on suspicion of illegal betting. Obstructing or delaying their entry is also in violation of the 1953 Betting Act. Citizens who inform the authorities about a common betting house are eligible for rewards. Magistrates can partially or fully redirect the fines imposed on convicted individuals to the informers.
The Common Gaming Houses Act of 1953 104l4v
The 1953 Betting Act concerns primarily sports wagering and bookmakers, whereas the 1953 Common Gaming Houses Act applies to other forms of gambling. It provides a lengthy definition of what gambling is, describing it as any activity that involves staking money on games based solely on chance or on a combination of skill and chance.
Running, letting, and owning a common gaming house is contrary to Malaysia’s law. The same applies to participating in the gambling activities available in such illicit facilities. If caught and convicted, violators suffer various penalties, depending on the severity of their transgression. The sanctions for illegal gambling in such facilities previously amounted to six months jail time and fines of up to RM5,000 or both.
However, the Malay Minister of Finance, Lim Guan Eng, introduced higher minimum fines of RM100,000 as part of the country’s 2020 budget plan (Section 200). The minimum mandatory imprisonment term for illegal gamblers became half a year. As for the operators of illegal gaming houses, the budget plan proposed minimum jail sentences of one year along with minimum fines of RM1 million.
Similarly to the Betting Act, the law on common gaming houses endows police authorities with the power to enter and inspect private premises on suspicion of illegal gambling. The authorities have the right to confiscate gaming machines and other gambling equipment they find under Article 16A of the 1953 Common Gaming Houses Act.
The Malay Minister of Finance has the remit to grant licenses to businesses ed under the 1965 Companies Act, allowing them to market and legally operate gambling games. As you can imagine, licensees are subject to various levies, unlike their illegal counterparts. According to Section 27A (1)(c), the permits have a validity of three months, after which time the Finance Minister can renew them at his sole discretion.
Licensees who contravene their permits’ risk revocation. At the moment of writing, Malaysia has a single legal landbased casino, Resorts World Genting. The regulatory entity that oversees its operations is the Betting Control Unit, which is part of Malaysia’s Ministry of Finance. The casino can legally offer various gambling games, including baccarat, blackjack, house-banked varieties of poker, roulette, and boule (a ball game). Tai sai and mini dice are available to patrons who prefer rolling the bones.
The Lotteries Act of 1952 and the Racing Act of 1961 4i64
Lotteries are easily the most widespread form of gambling worldwide, with many countries having at least state-operated national lotteries. Malaysia is not an exception as it regulates this form of gambling under the 1952 Lotteries Act. Running a lottery is lawful under this legislation provided operators have received authorization from the Malay Minister of Finance.
The 4D is the most common lottery format in the country, where players choose a number from zero to 9,999 and win provided that their pick is among the 23 numbers drawn. At the time of writing, the country has six authorized lotteries all of which are owned by private businesses. Running illegal lotteries is not something unheard of in Malaysia, however.
The industry intelligence service Asian Gaming Brief reported unauthorized lottery operators earned approximately 60% more revenue in 2018 than all licensed lottery businesses combined. The Malay police forces attempt to prevent such illicit operations by conducting regular raids.
Betting on horse races is also legal in Malaysia under the Racing (Totalizator Board) Act of 1961. The country has a rich horse racing history, with racecourses dating back to the 1800s. Placing and accepting wagers on horse races is lawful only on condition the operators hold the necessary permits. The Totalizator Board oversees the racing industry in Malaysia. Conducting research on equine sports and improving local turf clubs are also responsibilities of this body.
Religious Laws Applying to Malays 2z213k
A substantial percentage of Malaysia’s population is Muslim and as such must adhere to the principles of the Sharia law. The country recognizes Sharia courts that coexist with secular ones. Sharia is a set of moral codes derived from the Islamic religion and applicable to all Malays.
Residents who belong to other ethnic groups (eg. Indian and Chinese Malaysians) are known as non-Malays. They do not have to comply with the Sharia religious principles as the civil laws on gambling apply to them. The Sharia law prohibits gambling (maysir), decrying it as immoral and harmful (which it is in some cases).
Sharia disallows participation in such activities because they enable the individual to potentially accumulate wealth from chance rather than from engaging in productive activities. Islamic religious texts like the Quran refer to gambling as a serious sin, denouncing chance-based games as abhorrent creations of Satan.
Muslim Malays who gamble or harbor money obtained from gambling are liable for punishment under the Sharia court system. Malaysian states have the remit to enforce the Sharia law under Part 9 of the country’s Federal Constitution. The secular court cannot interfere with matters within the jurisdiction of the religious court, and vice versa.
As you probably know, gambling businesses usually give back a portion of their proceeds for charity and social causes like education, scholarships, and infrastructure improvement. However, Muslim charities in Malaysia will never receive donations from gambling operators as they deem such money unclean.
Social Responsibility and Problem Gambling 2w5ui
Licensed betting operators in Malaysia must follow various social responsibility policies in line with the local laws on gambling. They must not allow underaged individuals on the betting premises. Locals can legally engage in gambling provided they meet the minimum age requirement, which is 21 years old.
Restrictions on Gambling Premises Access
Responsible Gambling
Gambling Advertising
Problem Gambling
Restrictions on Gambling Premises Access 237356
The operators must also restrict access for Malaysian Muslims who cannot legally enter and play at casinos. That said, Malaysia has only one legal casino, namely Resorts World Genting. The luxurious resort sits in an isolated location, perching on a solitary hill 6,000 ft. above sea level to prevent scrutiny on behalf of the Muslim population.
Responsible Gambling 4l352w
Lawful betting businesses must adopt a proactive approach toward addiction by promoting responsible gambling and offering assistance to patrons who need it. Casino Resorts Genting, for example, provides a questionnaire that can help customers determine whether they are at risk of developing gambling-related problems.
Problem Gambling 5i2m1a
Research on problem gambling in Malaysia remains limited for the time being. In 2013, Monash University Malaysia and the Malaysian Health Association surveyed the prevalence of problematic gambling behaviors in the country’s most populous state, Selangor. The study established that roughly 4.4% of Selangor’s residents suffered from problem gambling. Around 10.2% were at moderate risk of becoming problem gamblers.
Another study researched the prevalence of gambling among local adolescents in 2014. It involved 2265 Malaysian minors and showed approximately 30% of them have engaged in gambling over the past year. Unfortunately, the country lacks properly structured state centers for problem gambling treatment at the moment. Malays who struggle with gambling addiction can resort to the services of several non-governmental centers for rehabilitation.
Conclusion 5l6id
The future of the gambling industry in Malaysia is far from clear amidst ongoing debates on whether the country should liberalize its market or not. Unfortunately, this is no easy topic to bring up for discussion. Much of the controversy has to do with Malaysia’s dual legislative system where religious and secular courts coexist. The main question here is whether Malay legislation should mirror a religious or a secular standpoint.
The absence of a regulatory framework for online gambling does little to prevent locals from using the services of offshore casinos and sportsbooks. Furthermore, they can do so without the fear of prosecution. The country’s government primarily targets illegal operators rather than pursuing individual gamblers. Perhaps Malaysia’s legislature will recognize the necessity of introducing proper online regulations in the future, especially considering the massive scale of illegal activities related to remote gambling.
Restrictions on Gambling Premises Access 237356
The operators must also restrict access for Malaysian Muslims who cannot legally enter and play at casinos. That said, Malaysia has only one legal casino, namely Resorts World Genting. The luxurious resort sits in an isolated location, perching on a solitary hill 6,000 ft. above sea level to prevent scrutiny on behalf of the Muslim population.