Malaysia Gambling License
ICLG - Gambling Laws and Regulations - covers common issues in gambling laws and regulations – including relevant authorities and legislation, application for a licence, licence restrictions, digital media, enforcement and liability – in 37 jurisdictions. Published: ICLG.com Practice Areas Gambling Malaysia. For registration under a Class License a fee of RM2,500.00 is payable for a One-year registration. License Application Procedure. Licence Application Procedure And Licensing Criteria Licenses under the Postal Services Act 1991 Licenses under the Digital Signature Act 1997. Notices to Licensees. Malaysia’s Ministry of Finance has given its approval for the re-issue to Ascot Sports, a company controlled by the well-known businessman, Vincent Tan, of the sports betting licence, which was originally granted in 1987 but had been withdrawn. The lack of clear-cut laws about online gambling in Malaysia allowed a great number of its residents to resort to online casinos with international gambling licences. These sites have the proper permits and are technically allowed to accept players from Malaysia. Many of these sites accept Malaysian Ringgit as the currency.
- Malaysia Gambling Licence
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- Malaysia Online Gambling License
- Malaysia Gambling License Application
- Malaysia Gambling License Renewal
- Malaysia Gambling License Plate
In Malaysia our gambling laws are quite interesting. Resorts World Genting is reachable in about one hour from our capital Kuala Lumpur by train. This is where Monte Carlo Casino, Hollywood Casino and StarWorld Casino are located. It is however illegal for 60% of our population to use these casinos – specifically Muslims. The same applies to other forms of gambling here too.
Malaysia Gambling Licence
In this article I’ll explain the laws, what forms of gambling are legal, and how this differs for Muslim and non-Muslim. If you are interested in Online Betting from Malaysia there is a Part II article that you can read on the bottom of this page.
Betting Act 1953 and Exemptions
The primary law that regulates gambling in Malaysia is the Betting Act of 1953. This was amended in 1958, 1959, 1961, 1989, 1992 (twice), and 2006. The link provided is to the current copy which includes all amendments.
This Act is about 20 pages and is written in simple easy to understand English. While there are many laws and very little is left out, let me mention the primary law for players. Here the penalty for unlawful gambling is set at “a fine not exceeding five thousand ringgit or to imprisonment for a term not exceeding six months or to both.”. It also includes much stricter laws for those involved in operating, promoting or having any non-player involvement in gambling businesses.
There are however many forms of legal gambling under the Betting Act. It specifically states the penalties do not apply to approved and licensed gambling. As mentioned in the intro to this article, for that we have legal casinos that are available. We also have legal pari-mutuel horse race betting due to the Racing (Totalizator Board) Act 1961. Lottery is legal here too which originally government owned has been private since 1985. You can learn about that at www.sportstoto.com.my.
Sharia Law Applies to Mulsims
The legal forms of gambling mentioned above are mostly designed to target Chinese (about 1/3 our population), other minorities, and tourists. Under Malaysian law all ethnic-Malays are required to be Sunni Muslim. They are therefore subject to Islamic Law which makes gambling a serious crime. For those not familiar with this take a look at Penang’s Syriah Criminal Offences Enactment of 1996.
The above link is a decent scan for anyone not familiar with Malaysian Law. Here you will find penalties for enticing a female person, abuses of halal sign, preventing a married couple from cohabiting, and all sorts of items not typically found in Common Law. Section 18 sets the penalty for Muslims caught gambling at a fine up to 3000 ringgit, or 2-years imprisonment, or both.
The above is only an example from one of Malaysia’s 13-states. However, each and every state has similar laws. Each state also has an Islamic Religious Affairs Department, whom among other agencies, enforce Islamic Sharia law. Even Muslim tourists are subject to these laws. There have been recent cases of Indonesian and Pakistani men arrested while on holiday for visiting casinos that are legal to about 40% of the population.
Political Climate of Malaysia
This article might misrepresent Kuala Lumpur. This is actually a very friendly city to live. However there are some strange situations here. Since 2000, all video games have been banned in the country. Today there are internet cafés with closed circuit televisions to watch for police raids while games are played inside. In 2010, Malaysian gaming group Berjaya (BGRO.KL) announced it was purchasing a 70% stake in Ascot Sports Sdn Bhd for 525 million ringgit. It was claimed Ascot had been issued a license to launch sports betting in Malaysia. Soon later there were protests and shortly after that the government denied any such license had ever existed.
This is all best explained as: in Malaysia we have many Muslims opposed to gambling. There are constant outcries and protests even over the legal forms of gambling we have already. It was said in a news article not too long ago that it seems every couple days the police are launching a new attack on Chinese gamblers. This explains it well from my perspective as daily something or another is being protested.
Online Gambling is Easier
The good news is it still possible to use overseas online gambling sites from the privacy of one’s own home without issue. For example www.bodog88.com is a post up betting site based in the Philippines that offers casino, sports betting, poker and Mahjong to Malaysia residents.
Players can deposit online or at the ATM using direct bank transfer. When they win, cash outs can be requested to the same method. The banks supported by Bodog Malaysia include Maybank, Public Bank, CIMB, RHB, Standard Chartered Bank, Hong Leong Bank, Affin Bank, EON Bank, Alliance Bank Malaysia, AmBank, Citibank, OCBC Bank, HSBC Bank, and United Overseas Bank.
In a country where the next gambling protests seem always around the corner, using gambling located in the Philippines from one’s own home is stress free and a much welcomed change.
1 Next: Online Betting Laws for Malaysia
Online gambling is technically illegal in Malaysia. While
it’s clearly illegal to host an internet gambling operation,
it’s not clear if patronizing a gambling site is illegal. The
laws on the books were written decades ago and none of them
specifically mention the act of placing bets online.
For the most part, online gambling is overlooked and if not
tolerated, at least brushed under the rug. Many Malaysians place
bets over the internet every day. Most of the major
international betting sites accept customers from Malaysia and
even process deposits and withdrawals in ringgits.
However, that doesn’t mean you are completely risk-free in
Malaysia. There are an increasing number of calls to ban online
gambling and Sharia law does hold sway in Malaysia. You have to
decide for yourself if it’s worthwhile. Most Malaysians who
gamble online do so without a worry in the world. It’s easy to
get paid, make deposits, and place bets as long as you stick with
the major names in gambling.
If you do decide to gamble online in Malaysia, it’s best to
stick with international sites NOT based in Malaysia for two
reasons. First, local sites based out of Malaysia are 100%
illegal and operate underground with zero regulation. You have
no recourse if one of those places decides to shut down and run
off with your money.
Second, offshore sites have no physical presence in Malaysia.
Malaysian authorities can’t just hop on a plane to England and
demand that Bet365 hand over its customer information. In other
words, you’re less likely to be “caught” gambling when you do
business with a site that operates legally in a
gambling-friendly nation.
General Gambling Law in Malaysia
Malaysia is a predominantly Muslim country so nearly all
forms of gambling, both online and offline, are considered
illegal. There are three major frameworks that dictate gaming
laws in Malaysia. The most prominent of these is the Betting Act
1953.
Additionally, civil contract law in Malaysia declares that
all agreements made in the form of gambling or wagering are null
and void. This means any person who loses a bet to another
person could refuse to pay up and the winner would have no legal
recourse.
1. Betting Act 1953
The Betting Act 1953 pretty thoroughly outlaws all forms of
gambling. The act even addresses telecommunications and other
means of transmitting bets between customers and betting houses.
The language in the act covers just about all possible loopholes
you would look for in a piece of legislation written that long
ago. Even to this day, there’s no easy way around it.
The act specifies a penalty of up to 200,000 ringgits and 5
years in jail for anyone caught operating a betting house or
patronizing one. It’s unclear if today’s betting sites fall
under the definition of a “betting house.” It could be
interpreted either way.
Here’s how the act defines the term betting house:
Malaysia Gambling License Sticker
(i) any place kept or used for betting or wagering whether
such betting or wagering, be in cash or on credit, on any event
or contingency of or relating to any horse race or other
sporting event or lottery to which the public or any class of
the public has, or may have, access;
(ii) any place kept or used for habitual betting or wagering
on any such event or contingency as aforesaid, whether the
public has, or may have, access thereto or not; or
(iii) any place used by a bookmaker for the purpose of
receiving or negotiating bets or wagers on any such event or
contingency as aforesaid, whether such bets or wagers reach the
bookmaker by the hand of the person placing the bet or his agent
or the bookmaker’s agent or through the telephone or the post or
by telegram or by any other means;
The last four words in that excerpt are the most troubling
for online betting. One could easily apply this law to internet
gambling. The good news for gamblers is that Malaysia doesn’t
bother with individual gamblers. Like many countries, Malaysia
instead targets those who operate or own betting operations.
Malaysia Online Gambling License
2. Common Gaming Houses Act 1953
While the Betting Act 1953 was directly primarily towards
sports betting and bookmaking, the Common Gaming Houses Act 1953
covers just about every other form of gambling. This act
criminalizes operating a gaming house and even being caught
inside one.
Any person caught inside a gaming house is subject to a fine
of up to 5,000 ringgits and up to six months in prison. The Act
defines gaming as:
“…the playing of any game of chance or of mixed chance and
skill for money or money’s worth…”
Malaysia Gambling License Application
The definition of gaming houses is also explained to great
length. We’ll save you the boredom of reading it all and just
say that it covers pretty much every possible location where
people could gather and gamble. The definition of the term could
conceivably be applied to gaming websites as well, but it
appears that Malaysia has no interest in pursuing individual
online gamblers.
3. Sharia Law
Malaysia Gambling License Renewal
The Malaysian Constitution makes Islam the mandatory religion
for all Malays, who account for over 60% of the population of
the country. Non-Malays (mostly ethnic Chinese, Indian, and
others) aren’t bound by Sharia law, but most of the country is.
This is important to note because Malaysia recognizes Sharia (or
syariah) courts.
Malaysia Gambling License Plate
Sharia courts and the secular legal system exist side-by-side
in Malaysia. There are debates to this day as to how that should
continue in the future and whether or not the Malaysian legal
system should be secular, religious, or both.
The dual justice system in Malaysia is complex and difficult
to implement. Sharia is mostly reserved for family affairs, but
individual states are allowed to implement Sharia in criminal
justice matters. Gambling is clearly forbidden by Sharia law and
that could also be interpreted to mean it’s off limits for 60%
of the country.