Online Gambling Regulations in Malaysia

Minutes left

minutes to read

Minutes left

Deni

Verified Casino Expert

Expertise: Casino Content Writing, Journalism & (PR), Gambling Regulations, Dutch & German Gambling Markets

Hi, I'm Deni! I'm a research obsessive with a passion for gambling regulations, market trends, and casino news. I dig deep into every topic I cover - so every article, review, or guide I write is built on solid research and real detail.

Learn about our Review Process

Published: August 30, 2020
Updated: April 1, 2026

Malaysia is one of the places where online betting is a confusing topic. That being said, online gambling is still incredibly popular there. While most countries and regions are changing their ways and becoming more lenient towards online gambling or even legalising it, it seems Malaysia is set to do the opposite.

Malaysia is a federal constitutional monarchy in Southeast Asia, comprising 13 states and 3 federal territories. Islamic principles play a significant role in shaping its gambling laws, but the country does not impose Islam on all citizens.

While Muslims are subject to strict prohibitions under Sharia Law, non-Muslims may legally engage in certain forms of gambling permitted under civil law.

In an effort to understand the current situation regarding online gambling in Malaysia, we’ll examine the country's history and laws, prospective new laws, and whether or not online gambling is considered legal. If you are based in Malaysia, it would be best to keep reading to avoid trouble with the law.

History and laws of gambling in Malaysia

Due to the fact that Malaysia is a mainly Muslim country, the legal framework dictates that nearly all forms of gambling, whether online or land-based, are considered illegal. The country has 3 major Acts in place to clarify its stance on gambling.

The Betting Act 1953

The Betting Act of 1953 is the most prominent and outlaws all forms of gambling. This law is quite thorough and even mentions telecommunications, as well as other ways bets are transmitted between customers and betting houses.

Where most legislation normally has some loopholes that can be used to the advantage of online gambling, this Act is clear and ensures all loopholes are covered. This act, however, seems to be more focused on bookmaking and sports betting.

Common Gaming Houses Act of 1953

Then there is the Common Gaming Houses Act of 1953, which covers all other forms of online gambling and makes operating a gaming house or even being caught in one a criminal offence.

Anyone who is caught breaking the law by disobeying the Betting Act or Common Gaming Houses Act will suffer severe punishment. This may include a fine of up to 5,000 Ringgits, and/or about 6 months in prison.

Sharia Law and the Constitution

Finally, the Malaysian Constitution makes Islam a mandatory religion for all Malays, who make up over 60% of the population, and they are bound by the Sharia Law. Non-Malays of the country are not bound by this law.

It’s important to know that the country recognizes Sharia courts. These courts and the separate legal system exist in harmony, but this also means that there is a dual justice system, which makes matters a little more complex and, therefore, makes it difficult to implement certain laws.

The fact of the matter is that Sharia Law forbids gambling, and seeing that this law applies to 60% of the country’s citizens, gambling is mostly illegal.

Malaysia moves to close online gambling loopholes

While there are some legal loopholes to allow non-Malays to participate in online gambling, the Malaysian authorities are determined to change that. As seen with the Betting Act of 1953 and the Common Gaming Houses Act of 1953, they can be very thorough in their legislation drafting.

In late 2017, the Malaysian government announced that it would be changing its current gambling laws to deter residents from participating in online gambling. The changes will be made to the Common Gaming House Act 1953, making it illegal for citizens to access online gambling sites or mobile apps.

Enforcement efforts were taken immediately. The Royal Malaysia Police, in cooperation with Interpol and leading telecommunications providers, initiated nationwide blocks on offshore gambling platforms.

These steps signal a clear policy direction: stricter regulation, stronger enforcement, and zero tolerance for online gambling.

Are your gambling winnings taxable in Malaysia?

While online gambling is considered illegal, there are still some who manage to find a way to access it, and these players are not required to pay any taxes on their gambling winnings. You get to take home everything you win without declaring it on your tax returns.

There is some bad news for casino operators, as a few legal casinos in Malaysia can be found in Resorts World Genting. There has been a flat rate of 22% tax on annual revenue that has remained unchanged over the years. In more recent years, the Malaysian government has strongly considered increasing the rate to around 25%. This again does not apply to players, and you get to keep every bit of your earnings.

Is online gambling legal in Malaysia?

Until now, there have been some loopholes in the country’s laws and regulations that one could argue don’t make it completely illegal to play at online casinos. Recently, the government has decided to amend these laws or bring in new legislation that is set to render online gambling an illegal activity.

In February 2026, it introduced a draft bill for a law addressing the illegal gambling market. However, as it turns out, the changes also include all online activities, which would officially make online gambling illegal if passed.

For those avid players who are persistent and eager to still participate in online gambling, there are a few licensed sites that allow Malaysians to sign up and play. Before you start playing on these online sites, just make sure they are trustworthy. You can also take a look at the top international online casinos we’ve listed on our site.

CasinoWow final thoughts

Online gambling is clearly considered to be a no-go in Malaysia, but the authorities have been known to target operators rather than individual players. Thus, if you feel like playing online you can, but with the laws changing there could pretty soon be no way of accessing online casino sites for the Malays.

Do you enjoy this article?

Share your experience on Trustpilot

By Deni

Verified Casino Expert

Expertise: Casino Content Writing, Journalism & (PR), Gambling Regulations, Dutch & German Gambling Markets

Learn about our Review Process

Anything incorrect or missing?

Last updated: April 1, 2026

Let us know

Featured Guides

Play Safe How to Play Responsibly: A Beginner’s Guide

Online gambling can be fun, but it can also destroy you. Learn how to play responsibly with this handy guide!

Game Guides Online slots and their main features

Online slots are all the craze today and not just because they are reproducing the best features of your favourite slot ...

Infographics The psychology behind gambling addiction

Gambling is a way to enjoy your free time and to connect with others. Socialising is one of the top reasons why people g ...

Game Guides A guide to the best Live Roulette strategy

Live Roulette is an immersive experience with so many thrilling variants to choose from, including standard and less tra ...

Game Guides Free online slots guide

Playing online slots for free is the perfect way to discover new games and fun ways to win at your favourite online casi ...

{"3":{"n":"Games Global","i":"11-2025\/games-global-icon.png"},"4":{"n":"NetEnt","i":"netent-icon1.png"},"11":{"n":"Novomatic","i":"novomatic-icon-1.png"},"12":{"n":"Play'n GO","i":"play-n-go-icon1.png"},"13":{"n":"Big Time Gaming","i":"btg-icon-1.png"},"14":{"n":"Barcrest","i":"barcrest-icon-1.png"},"15":{"n":"WMS","i":"wms-icon-1.png"},"16":{"n":"NYX Interactive","i":"nyx-icon1.png"},"17":{"n":"NextGen Gaming","i":"nextgen-icon.png"},"18":{"n":"IGT","i":"igt-icon-1.png"},"19":{"n":"Yggdrasil","i":"yggdrasil-icon-1.png"},"20":{"n":"EGT Digital","i":"egt-digital-icon.png"},"21":{"n":"Betsoft","i":"Betsoft-icon.png"},"22":{"n":"Evolution","i":"evolution-icon-1.png"},"23":{"n":"Merkur Gaming","i":"merkur-gaming.png"},"24":{"n":"Thunderkick","i":"thunderkick-icon.png"},"27":{"n":"Aristocrat","i":"11-2025\/Aristocrat-gaming-icon.png"},"28":{"n":"Playtech","i":"Playtech.png"},"29":{"n":"Quickspin","i":"11-2025\/quickspin-icon.png"},"30":{"n":"Bally Gaming","i":"Bally-Gaming-icon.png"},"31":{"n":"Light & Wonder","i":"11-2025\/Light-and-Wonder-icon.png"},"34":{"n":"Pragmatic Play","i":"Pragmatic-Play-icon.png"},"35":{"n":"Push Gaming","i":"pushgaming-icon.png"},"36":{"n":"Relax Gaming","i":"relax-gaming-icon.png"},"37":{"n":"Hacksaw Gaming","i":"hacksaw-gaming-icon.png"},"38":{"n":"Nolimit City","i":"nolimit-city-icon (1).png"},"39":{"n":"Amatic","i":"amatic-icon(1).png"},"40":{"n":"BGaming","i":"BGaming-icon.png"},"41":{"n":"Blueprint Gaming","i":"blueprint-gaming-icon.png"},"42":{"n":"ELK Studios","i":"elk-studios-icon.png"},"43":{"n":"Ezugi","i":"ezugi-icon.png"},"44":{"n":"Gamomat","i":"gamomat-icon.png"},"45":{"n":"Habanero","i":"habanero-icon.png"},"46":{"n":"iSoftBet","i":"isoftbet-icon1.png"},"47":{"n":"Playson","i":"playson-icon.png"},"48":{"n":"Red Tiger Gaming","i":"redtiger-icon(1).png"},"49":{"n":"Wazdan","i":"wazdan-icon(1).png"},"50":{"n":"Amusnet","i":"7-2026\/amusnet-icon-new.jpg"}}

Malaysia - online gambling regulations

Contents

Contents