AdminMalaysia is a predominantly Muslim country, with over half its population practicing Islam. As a result, both land-based and online gambling are banned in the state, with a few exceptions. Yet, gambling activities are still very much pronounced.
For one reason, the country has one licensed land-based casino due to some concessions and tourist attractions. However, its regulatory statutes have no clear regulations for online operations. So, regulatory agencies find it difficult to restrict bank transactions and seize the assets of people involved in gambling activities.
In addition, Asia is experiencing rapid technological advancements, fuelled by the increased internet connectivity across various places. This advancement has attracted foreign investments, earning Malaysia a spot among the fastest-growing economies in Southeast Asia.
The country’s gambling landscape is one filled with contradictions. Owing to partial gambling restrictions and booming technological advancements fuelling a gambling economy, Malaysia’s gambling market for 2024 is quite a spectacle.
Let’s find out how much.
Regulatory Landscape of Malaysia’s Gambling Market
Despite being a predominantly Muslim-majority nation, gambling activities seem to thrive in Malaysia. However, the regulatory frameworks governing these activities are somewhat outdated.
Existing statutes include the following:
- Lotteries Act of 1952, which regulates the country’s lotteries
- Racing Act of 1961, which regulates horse racing games
- The Common Gaming Houses Act of 1953 which prohibits the running of a betting house
- Betting Act of 1953, which bans all forms of gambling with some exceptions (more on that below)
According to these legislative provisions, the only legal gambling activities in Malaysia include
- Lotteries
- Horse Racing
- A single land-based casino — The Genting Highlands Resort
Due to the old-fashioned nature of these regulations, they cannot address the legal status of online gambling operations. As a result, the government currently applies both the Betting and Common Gaming Houses Acts of 1953 to indict organizations offering casino-like services. In addition, the government also retains the right to prohibit all Malaysian Muslims from participating in such activities.
In a bid to ensure the existing regulatory frameworks prohibit gambling more precisely, the Northern state of Kedah, on January 1, 2023, prohibited 4D lottery sales. In furtherance of this new step, they withdrew licenses from organizations that previously had them. Consequently, the Malaysian Police executed the new laws by arresting 900 people who continued to engage in such gambling activities since the new legislation.
Secular and Islamic laws
The regulation of Malaysia’s gambling markets has two other interesting twists. Firstly, the regulations are a mixture of Islamic and secular laws. Secondly, they are overseen by several entities, including the Ministry of Finance (MoF), the Royal Malaysia Police (RMP), and the Malaysian Communications and Multimedia Commission (MCMC).
Due to the combination of secular and Islamic laws, non-Muslims can legally participate in certain gambling activities while Muslims cannot.
Now, combining the booming economic developments and foreign investments with the regulatory gray areas unable to answer for the involvement of modern technology, we have a Malaysian gambling market laden with foreign-based online casinos and a single land-based casino with booming activities.
Come find out what is happening in Malaysia’s gambling market.
The Segments of Malaysia’s Gambling Markets
Malaysia’s gambling markets can be divided into the following.
Online Casino Market
Although online casinos are prohibited in Malaysia, the lack of clear restrictions has made it easy for citizens to enjoy casino games from a long list of online casinos in Malaysia. As of 2019, the online games revenue was estimated to have reached $7 billion. However, this isn’t accurate, considering that many gamers often apply different methods to stay hidden.
Similarly, for the same reasons, it’s difficult to determine the accurate number of Malaysian players. Nonetheless, online surveys reveal that roughly 80% of Malaysian online casino players are males and that this population largely comprises young, tech-savvy individuals.
The online casino market is populated with the following games:
- Slots
- Roulette
- Live dealer games like Blackjack, Monopoly, and Texas Hold’em.
- Progressive jackpot games offered by various developers
In 2024, we expect greater participation from the Malaysian population as major game developers like Evolution Gaming, NetEnt, Microgaming, and Asia Gaming intend to populate the market with more captivating options.
Horse Racing Market
Gambling on horse racing is legal in Malaysia. However, this is only permitted at any of the country’s three licensed horse racing tracks, which include the following:
- The Penang Turf Club
- The Perak Turf Club
- The Selangor Turf Club
Legislations surrounding horse racing and gambling in Malaysia are currently unchanged. Combining this reality with the fact that the global horse racing industry is expected to grow at a compound annual growth rate (CAGR) of 8.89% from 2024 to 2030 indicates that this niche of Malaysia’s gambling market is bound to experience huge growth in 2024.
Sports Betting Market
Malaysia’s sports betting market is one of the country’s biggest markets because most people are sports lovers. Some of the most popular sports that locals and tourists bet on in Malaysia include the following:
- Football
- Badminton
- Motorsports
- Motorcycling
- Basketball
- Tennis
Football is one of the most popular among the numerous sports options. As a result, football betting accounts for a sizable portion of the gambling market. Malaysians bet on European competitions like the English Premier League (EPL) and Spanish La Liga. They also give attention to local competitions like the Super League.
In other sports, like Motorsports and Motorcycling, they focus on major events held in the country, like the Formula One Grand Prix and the Motorcycle Grand Prix, which are sometimes held in the country.
Apart from these established forms of sports betting, newer ones like live sports betting and esports are beginning to gain popularity in 2024 due to technological advancements. The market is currently experiencing a massive adoption of mobile apps and virtual reality technology, making it easy for Malaysians to place their bets.
Malaysia’s sports gambling market in 2024 is expected to comprise live betting, esports betting, and conventional options. And despite the strict legislation, foreign sportsbooks are poised to meet the growing demand of the Malaysian market.
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