SOCIAL SCIENCES & HUMANITIES Online Gambling in Malaysia: A

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SOCIAL SCIENCES & HUMANITIES Online Gambling in Malaysia: A Pertanika J. Soc. Sci. & Hum. 29 (1): 207 - 220 (2021) SOCIAL SCIENCES & HUMANITIES Journal homepage: http://www.pertanika.upm.edu.my/ Online Gambling in Malaysia: A Legal Analysis Guru Dhillon, Lee Sook Ling, Maran Nandan, and Jason Tze-Xi Nathan* Faculty of Law, Multimedia University, 75450 Bukit Beruang, Melaka, Malaysia ABSTRACT Gambling is a serious issue that comes with wide-reaching social, political, and economic consequences if not tightly monitored by governmental authorities. The advent of technology has provided gambling operators a virtual platform that caters to gamblers over the internet. Malaysian legislation that deals with gambling was drafted before online gambling came about. Malaysia has yet to introduce any amendment to existing legislation to better equip it with sufficiently clear wording and provisions for the purpose of regulating online gambling. The aims of this article are to (1) examine the prevalence of online gambling in Malaysia today and (2) analyze the application of existing legislation to regulate online gambling. In this article, the above aims are analysed from a legal perspective based on a qualitative doctrinal research method involving journal articles, relevant news articles, and Malaysian legislation. The finding of this article establishes that unregulated online gambling is growing into a pressing issue in Malaysia and relevant local legislation needs to be updated to better deal with its challenges. This article is not meant to be an all-encompassing thesis but to serve as an introductory guide into this ARTICLE INFO niche area of the law. Article history: Received: 30 October 2020 Accepted: 14 January 2021 Keywords: Betting, gaming houses, online Published: 26 March 2021 gambling DOI: https://doi.org/10.47836/pjssh.29.1.12 E-mail addresses: INTRODUCTION [email protected] (Guru Dhillon) [email protected] (Lee Sook Ling) Malaysia’s diverse demographics bring [email protected] (Maran Nandan) [email protected] (Jason Tze-Xi Nathan) with it various challenges that stem from *Corresponding author ISSN: 0128-7702 e-ISSN: 2231-8534 © Universiti Putra Malaysia Press Guru Dhillon, Lee Sook Ling, Maran Nandan, and Jason Tze-Xi Nathan its unavoidable differences. The varying casino in the form of Genting Highlands. beliefs and sensitivities of different However, these are the few and only legal communities must be taken into account avenues of gambling in Malaysia. in order to maintain national harmony. The advancement of technology over the This is especially so when the effects of years has disrupted the way many industries our differences spill over into the sphere of traditionally work. The advent of the public policy. Gambling, or more accurately Internet age has certainly transformed many the right to gamble freely, is one of those industries although not all of the industries divisive issues albeit a less incendiary one would be deemed as “good” in the eyes compared to other racial and religious issues of the public. A new dimension has been that one would come across in Malaysia. added to the gambling industry in the form While Malaysia is ethnically a very of online gambling and betting. One cannot diverse nation, 61.3% of the Malaysian say for sure if that is a good thing for society population are Muslims (Department but it has turned into a multibillion-dollar of Statistics Malaysia [DOSM], 2010). industry. The non-casino gambling industry Malaysia is unique in the sense where it has in Malaysia alone has been estimated to be a dual judicial system with Muslims having worth US$2.99 billion (Berthelsen, 2013). their own separate court system for certain Hence steps must be taken to ensure that the areas of law as per Article 121(1A) of the legislative framework is up to date to deal Federal Constitution. Islamic Shariah law is with this new situation. enforceable on Muslims for certain kinds of Moving forward, this article aims to offence. Gambling is illegal and punishable examine the prevalence of online gambling under the Islamic Shariah law if a Muslim in Malaysia today and analyse the application devotee is implicated in the activity or of existing legislation to regulate online has harboured money gained through gambling. Accordingly, the article will begin gambling activities (Loo & Phua, 2016). with the examination of the prevalence of This makes the issue of regulating gambling online gambling in Malaysia with reference or betting socially, and consequently legally, to relevant statistics and reports. The article complicated. will then continue with an analysis of the Yet despite that gambling in itself has Malaysian legislative framework and the had a long history in Malaysia from as early application of existing legislation to regulate as the “….19th century when the Chinese online gambling including the Betting Act traders and seamen came to Malaya” (1953), Communications and Multimedia (Dhillon & Miin, 2013). Today Malaysia Act (CMA, 1998), Contracts Act (1950), has several avenues of legalized gambling Common Gaming Houses Act (CGHA, including sports betting by several legalized 1953), and Prevention of Crime Act (POCA, companies and a spectacular mountain top 1959). 208 Pertanika J. Soc. Sci. & Hum. 29 (1): 207 - 220 (2021) Online Gambling in Malaysia MATERIALS AND METHODS Malaysian authorities are combating A qualitative doctrinal research method was several forms of online gambling as follows: employed. Materials were sourced from a. online gambling operators both both legal and non-legal sources including local and foreign that offer their services on but not limited to scholarly research a website and local Malaysians patronize the journals, reports, Malaysian legislation, said services; and relevant news articles. A doctrinal b. online gambling syndicates that analysis of relevant Malaysian legislation base their operations in Malaysia but target was conducted in tandem with a qualitative gamblers out of Malaysia; analysis of online gambling in Malaysia. c. traditional gambling operators that still operate and accept customers into their RESULTS AND DISCUSSION physical premises but transfer the actual gambling process to a virtual platform Prevalence of Online Gambling in by providing their customer’s tablets and Malaysia mobile phones topped up with credit under The nature of online gambling is such one WiFi signal instead of traditional that the gambling services offered by an gambling cards and boards. operator operating outside of Malaysia Law enforcers face difficulty in tracing on an online platform that is accessible their operations as they are not confined to to anyone in Malaysia with an internet a fixed premise. The operators can easily connection if it was not blocked by the operate out of any premise since only mobile Malaysian Communications and Multimedia devices are used (“Illegal gambling”, 2018). Commission (MCMC). Online gambling Malaysian police generally focus their has been accessible to the world since its efforts on catching the illegal operators, origins in Antigua and Barbuda which syndicates, and people helping the syndicate allowed licensed online casinos to operate instead of the gambler although there are in 1994 (Duncan, 2015). instances where the gambler is caught and Global online gambling wagers are prosecuted. projected to reach USD 950 billion by 2021 In the first half of 2019 alone, police (Juniper Research, 2016). In recent years had seized RM3.8 million in cash, arrested the issue of online gambling in Malaysia 14,759 individuals, and seized 10,361 pieces has started to become a cause for concern of equipment in various raids launched for authorities due to a spike in the number against illegal gambling including online of illegal operators run by foreign and local gambling. From these raids, the police syndicates that have set up operation centres identified up to 37 syndicates involved in across Malaysia. This situation has led to online gambling (Bernama, 2019). numerous crackdown operations by the police to contain this problem. Pertanika J. Soc. Sci. & Hum. 29 (1): 207 - 220 (2021) 209 Guru Dhillon, Lee Sook Ling, Maran Nandan, and Jason Tze-Xi Nathan Bukit Aman Criminal Investigation syndicates in Malaysia to get in touch with Department director Datuk Huzir Mohamed the police (Chew, 2019). in a press statement stated that the police The recent Covid-19 pandemic has not are also working with the local authorities stopped these syndicates from carrying out and the Malaysian Communications and their illegal operations either. On 22 April Multimedia Commission (MCMC) to cut 2020, the police raided an online gambling off utility services and block gambling syndicate in Ukay Heights, Ampang, with websites. MCMC has also been requested the arrests of 25 Chinese nationals. They to block 1,270 websites determined were from the Jianxi and Guizhou districts to be advertising gambling activities. and found to be promoting illegal gambling Telecommunication operators such as through online messaging applications Celcom, Telekom Malaysia, UMobile, to gamblers in China. They were also Maxis, and Digi are reported to also be suspected of coordinating online gambling cooperating with enforcement authorities to games (Bernama, 2020). halt unsolicited gambling-related messages The news articles above clearly (Bernama, 2019). demonstrate that the vice of online gambling Besides that, the police have also warned is a present and real problem to be dealt with that owners and tenants discovered to have by the relevant authorities. As the vice of given permission for gambling activities to online gambling grows in Malaysia, it will be carried out within their premises will face naturally pose new problems that traditional legal repercussions (Bernama, 2019). Datuk gambling legislation does not provide for. Huzir stated in the same press conference The legislation currently employed to deal that those found to be involved would “... with these new problems posed by online face action under Section 4(1)(a), Section gambling will be further discussed in the 4(1)(b), Section 4(1)(c) dan Section 4(1)(g) next section.
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