Pertanika J. Soc. Sci. & Hum. 29 (1): 207 - 220 (2021)

SOCIAL SCIENCES & HUMANITIES

Journal homepage: http://www.pertanika.upm.edu.my/

Online Gambling in : 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. of the CGHA (1953).” In the course of the crackdown, police Legislative Framework of Online have identified international gambling Gambling in Malaysia syndicates run by Chinese and Indonesian In order for a country to effectively tackle nationals, who have chosen Malaysia as a an issue like online gambling, a two-prong hub for these operations (Ramendran, 2019). approach must be adopted. The first prong A large number of these reported cases is comprehensive legislation that effectively involved Chinese nationals and this problem covers all aspects of the issue. Legally was so rampant that the Chinese Embassy speaking, any form of a criminal offence can had to post a notice on its website advising only be deemed so if it is first categorized Chinese citizens to obey local laws and under existing legislation as a crime. A crime urged anyone who had inadvertently become is an activity that is against the laws of a involved in fraud or online gambling nation (Ishak & Bani, 2017). It is an action

210 Pertanika J. Soc. Sci. & Hum. 29 (1): 207 - 220 (2021) Online Gambling in Malaysia or omission which constitutes an offence and goes for gamblers who patronize illegal is punishable by law. For example, the Penal gambling services. Code codifies a whole list of actions and There is a whole slew of legislation omissions which are deemed as punishable that regulates various forms of legal and offences under the law. licensed gambling. Among the legislation The second prong would be effective that regulates gambling in Malaysia are: enforcement of the legislation. One can 1. Betting Act (1953) legislate as many good and commendable 2. CGHA (1953) laws as possible but it will all be for naught 3. Lotteries Act (1952) without there being reliable enforcement 4. Pool Betting Act (1967) agencies and mechanisms in place to 5. Racing Club (Public Sweepstakes) Act prevent offences and punish offenders (1965) (Andrews, 1909). However, for the purpose These legislations are standalone statutes of this article, only the legal aspect will be that deal with various forms of gambling. examined as the focus of this article is on Apart from these Acts, there are also other the existing legislation and its weakness. pieces of legislation which is utilized by enforcement agencies in apprehending Existing Legislation individuals dealing with illegal gambling As previously mentioned, under our including online gambling such as the country’s unique dual legal system as laid POCA (1959) . As can be observed, while out in the Federal Constitution, Shariah law we have several standalone pieces of which is applicable for Muslims forbids legislation that regulate different forms any form of gambling for Muslims. This of gambling activities, Malaysia does not means that gambling of any form is already have a standalone Act to deal with the issue illegal for the majority of the citizens since of online gambling. This would not be an Muslims make up roughly 60% of the issue if the above mention legislation were population (Zakaria et al., 2018). self-equipped with provisions and wordings As for the non-Muslims, gambling with that granted it the power to regulate online a licensed operator is permitted. Section forms of gambling. Unfortunately, that is 27A of the CGHA (1953), states that the not the case. Minister of Finance may authorize a validly A cursory look at the years in which registered Malaysian company to promote these Acts were promulgated clearly shows and organize gaming. A company that is not that its provisions were drafted in an era in licensed to promote and organize gaming as which no one could anticipate the coming per the above provision but still provides novelty known as the internet, let alone gaming or gambling services is essentially anticipate the challenges that would come an illegal gambling operator and will be with it in the form of online gambling. The liable for the full brunt of the law. The same issue of updating existing legislation has

Pertanika J. Soc. Sci. & Hum. 29 (1): 207 - 220 (2021) 211 Guru Dhillon, Lee Sook Ling, Maran Nandan, and Jason Tze-Xi Nathan been raised up multiple times in the past authorities in focusing their efforts on taking with promises of an amendment to better down the syndicates as opposed to going deal with the issue of online gambling. after the gambler which is much harder to Then Home Minister (and current track. The CGHA 1953 also has provisions Prime Minister) Tan Sri that cover the gambler and parties which mentioned during the course of the debate assist the syndicates hence making it a in the Dewan Rakyat on 9 July 2019 that the rather comprehensive piece of legislation government intended to amend gambling save the lack of specific provision expressly laws to include provisions which dealt with specifying online gambling. online gambling as “They need updating Former Deputy Home Minister Datuk because, at that time, there was no online Mohd Azis bin Jamman in a reply to YB gambling.” He also noted that countries like Nurul Izzah during the parliamentary debate Singapore had standalone legislation to deal on 12 November 2019 stated that Tenaga with online gambling (Kaur, 2019). Nasional Berhad (TNB) had, in accordance However, this intention to introduce with Section 21A of the CGHA 1953, cut appropriate amendments has been around power supply to 9 premises located in since early 2017, when it was reported that Penang believed to be used as gambling then Deputy Prime Minister Zahid Hamidi hubs (Dewan Rakyat, 2019). This is an made an announcement informing the example of how comprehensive the CGHA public that the amendment to the CGHA 1953 is in its coverage. (1953) had been drafted and submitted to While it is comprehensive in coverage, the Attorney Generals Chambers. It was the key provision in the CGHA 1953 also communicated that the amendment is Section 4. Bukit Aman Criminal would be tabled at the next Parliament Investigations Department director Datuk session (Bernama, 2017). Unfortunately, Huzir Mohamed in a press conference the proposed amendment has yet to see the after a nationwide crackdown on gambling light of day. In the meantime, enforcement syndicates, including 37 online gambling agencies continue to use the existing syndicates, on 24 June 2019 informed the legislation to combat the vice of illegal public in a press conference that owners and online gambling. tenants found to have allowed their premises to be used for gambling activities would not Common Gaming Houses Act 1953 be spared from police action. “Those found The CGHA (1953) is frequently relied upon to be involved will face action under Section by Malaysian authorities to combat illegal 4(1)(a), Section 4(1)(b), Section 4(1)(c), and online gambling in Malaysia. The CGHA Section 4(1)(g) of the CGHA (1953),” he 1953 has multiple provisions which target said (Bernama, 2019). the operators of illegal gaming houses Now to examine some of the provisions and this fits the approach of Malaysian as mentioned by the police to be applicable.

212 Pertanika J. Soc. Sci. & Hum. 29 (1): 207 - 220 (2021) Online Gambling in Malaysia

Section 4(1)(a) -(g) of the CGHA 1953 Section 6(1) of the CGHA 1953 is deemed provides that if a person who is the owner applicable against online gamblers who of a premise or manages the premise which patronize the services of online gambling is being run as a common gaming house is operators. liable for an offence. Section 4B of the CGHA 1953 provides The provisions of the CGHA 1953 the punishment of a fine or imprisonment clearly intend to target operations of for any person found guilty of committing gambling syndicates in physical locations. an offence by transacting or dealing with a While the act of gambling is online, gaming machine of any form in any manner. operators of the syndicate need to operate Section 6 (1) of the CGHA 1953 on the other from a physical location to keep the website hand also provides the punishment of fine of the “online casino” up and running. or imprisonment to persons found guilty Hence, enforcement agencies can rely on of patronising a common gaming house as these provisions to catch online gambling defined by the CGHA 1953. operators of all forms. Section 4(1)(b) of the While these provisions are clearly CGHA 1953 goes one step further to rope applicable to gamblers who patronize in the people owning the physical locations gambling operations with a physical location of such operations as offenders. but carry out the actual gambling online as Lately, there has been a noticeable shift described in the earlier statement by Dato in the modus operandi of illegal gambling Seri Mazlan Lazim, it is unclear whether this operations. Local police have reported them provision can be deemed to be applicable going high tech with their go-to mode of to online gamblers who do not gamble in a operation involving the use of smartphones physical gaming house. If we delve further and tablets. According to into the CGHA 1953, the wordings of the City police chief Commissioner Datuk Seri relevant provisions are wide enough to Mazlan Lazim: “A representative from the be reasonably interpreted as applicable to syndicate will distribute tablets which are online gamblers who are not physically in topped up with credit. The whole gambling the gaming house. process will be under one WIFI signal and The wording of Section 4B of CGHA mostly portable WIFI. These syndicates 1953 has anyone who deals or transacts have a lot of applications to gambling and with gaming machines guilty of an offence, at the end of the day, players pay in cash Section 2 of the CGHA 1953 defines gaming or via online transaction should they lose machine as: in a game.” According to him, culprits “any mechanical, electrical or could also be arrested and prosecuted under electronic machine or device (including Section 4B(a) and Section 6(1) of the CGHA any computer program used in such 1953 (“Illegal Gambling”, 2018). From machine or device),” this article, it is clear that Section 4B and

Pertanika J. Soc. Sci. & Hum. 29 (1): 207 - 220 (2021) 213 Guru Dhillon, Lee Sook Ling, Maran Nandan, and Jason Tze-Xi Nathan

This device is designed or adapted in pages can arguably be said to fulfil all such a way that the device can be used for the conditions used to define a “common playing a game of pure chance or chance gaming house” as listed above except for and skill for winnings of monetary value. the need of a physical premise (Dhillon & The definition of the gaming machine Miin, 2013). according to Section 2 of the CGHA 1953 Despite the potential difficulties put in is so broad and encompassing that it can place by the terminology of CGHA 1953, arguably be interpreted to include privately there have been encouraging signs of owned mobile phones that have been used progressive application of the CGHA 1953 by gamblers to gamble online even without by enforcement authorities. On 2 October being present in a common gaming house 2020, in what is believed to be the first such and hence be liable for an offence under case in Malaysia, police raided the premises Section 4B of the CGHA 1953. of a software development company for Unfortunately, other wordings and allegedly creating, selling, and maintaining definitions provided within the CGHA 1953 online gambling applications for consumers still operate with an implied understanding in foreign countries (Camoens, 2020). or notion that gambling can only occur in a The police stated that the case would be physical premise. For example, Section 2 investigated under the 4(1)(g) CGHA (1953) of the CGHA 1953 provides the definition and the Computer Crimes Act 1997. In a of “common gaming house” as “…any follow-up raid on 30 October 2020, the place…”, of which all or certain members suspects were rearrested under the POCA of the public have access for the specific (1959) (Zack, 2020). This is an encouraging purpose of gambling including various step in the right direction as the role of other forms of gaming and lottery. While the non-traditional gambling-related parties like provisions provide for various forms of software developers is being recognised gambling activity that may be conducted in as crucial to online gambling operations. the place and various possible methods of However, this also shows the weakness dealing with the premise, the key term in of existing gambling regulations like the the definition of “common gaming house” CGHA 1953 as the police had to end up is “any place”. The term “any place” is used relying on POCA (1959). repeatedly throughout the lengthy definition. A strict interpretation of the usage Betting Act 1953 of the word “place” might run the risk of The Betting Act 1953 (BA 1953) is another confining the reaches of the CGHA 1953 important piece of legislation that deals to a brick-and-mortar setting. Yet with the with gambling, specifically with betting. rise of online gambling, an online gambling The police rely upon provisions within the website that hosts such forms of gaming BA 1953 to deal with all forms of betting in online gaming rooms, chatrooms, or including online betting. An online gambling

214 Pertanika J. Soc. Sci. & Hum. 29 (1): 207 - 220 (2021) Online Gambling in Malaysia business that doubled as a call center was The word “place” on the other hand is raided in Kluang, Johor on 9 January 2020. defined as: - According to police, the syndicate’s modus “…any house, office, room or building, operandi was to conduct and promote online and any place or spot, whether open or gambling from two residential properties by enclosed, and includes a ship, boat or attracting Chinese nationals into gambling. other vessel whether afloat or not, and The suspects were remanded and the case any vehicle;” was investigated under Section 4 (1) (c) of Once again, the usage and definition the BA 1953 (Tan, 2020). of the word “place” in the BA 1953 would Section 4(c) of the BA 1953 provides raise troubling questions on the applicability that any person who cares or manages a place of the provisions of this piece of legislation purposed to function as a common betting meant to regulate betting in Malaysia onto house or betting information sentence online betting which is seemingly not caught will be liable to a fine and imprisonment by the definition of the word “place” which upon conviction. The interpretation of alludes to a strictly physical premise as can this provision should be combined with be deduced from its definition in Section 2 a reading of the definition of “betting of the BA 1953. information centre” in Section 2(1) of the On the other hand, the word “access” BA 1953 which is loosely worded and is also defined in Section 2 of the same could be widely interpreted to outlaw online legislation and includes access by way of gambling (Zakaria et al., 2018). telephone. While telephone betting is a However, the potential obstacle posed different form of betting from online betting, by the BA 1953 for its utilization in Pan Malaysia Pools Bhd which initially enforcement against online gambling is the started a telephone betting service after same as that of the CGHA 1953, namely receiving a telephone betting licence has the wordings of the legislation invites the successfully transitioned that service to a interpretation that the legislation is only mobile app through a service called dmcGO applicable in circumstances in which a for bettors to place bets over the mobile app physical premise is abused for the purposes via the internet. This would be considered of illegal betting. a legal form of online betting and it would For example, Section 2(1) of the BA seem that this is a gateway for online betting 1953 defines the term “common betting and gambling (Goh, 2017). house” as “…any place…” which was kept or used for the purpose of betting or receiving bets in either cash or credit, by Prevention of Crime Act 1959 way of telephone, post or telegram, on an The POCA (1959) is not a gambling- event or contingency of event of which the specific piece of legislation. In fact, the general public has access to. description of the POCA (1959) begins as

Pertanika J. Soc. Sci. & Hum. 29 (1): 207 - 220 (2021) 215 Guru Dhillon, Lee Sook Ling, Maran Nandan, and Jason Tze-Xi Nathan follows: “An Act to provide for the more gambling operators in any way, rent effectual prevention of crime throughout to online gambling syndicates or have Malaysia and for the control of criminals, knowledge of this vice but do not report to members of secret societies, terrorists and the police, can be implicated under POCA other undesirable persons, and for matters (1959) and be detained for up to two years incidental thereto.” While not solely geared without trial with the possibility of extension towards regulating gambling, the POCA should it be deemed necessary. According (1959) has key provisions which provide to Bukit Aman Anti-Vice, Gambling and for enforcement against illegal gambling Secret Societies Division principal assistant operations and hence by extension, illegal director Senior Assistant Commissioner online gambling operations. Datuk Rohaimi Md Isa, in 2019 alone, 350 In 2016, Selangor police issued a stern culprits involved in online gambling were warning to all owners of online gambling dealt with under provisions in POCA 1959 centres in the state to close down their (“Property owners”, 2020). Key provisions operations or face action under the POCA within POCA (1959) that are relevant to the (1959) (Bernama, 2016). Former Deputy issue of illegal online gambling are Section Home Minister Datuk Mohd Azis bin 3, 7(b), 19A (1), and Schedule 1(5). Jamman in a reply to YB Nurul Izzah during Part 1(5) of the First Schedule list the parliamentary debate on 12 November expressly refers to persons who are 2019 informed Parliament that between concerned with the organization and 2017 and 2019, the action was taken against promotion of illegal gaming as part of the as many as 28 people under POCA (1959) Registrable Categories in the POCA (1959). for the crime of online gambling (Dewan This widely worded provision would rightly Rakyat, 2019). include illegal online gambling syndicates In the first half of 2018 alone, police and, if liberally interpreted, all persons reported that 25 suspects were detained involved in assisting these illegal syndicates. without trial under the POCA (1959). Local Section 3 provides that a person may police while lamenting about the difficulty be arrested without a warrant by the police in apprehending culprits due to the mobile they have reason to believe that the person nature of this vice, said that stern actions may be held under justifiable grounds will be taken against both operators and under the ambit of POCA (1959). This is customers. Culprits that were caught could a controversial provision within the Act be prosecuted under Section 4B(a) and that provides for arrest without a warrant Section 6(1) of the CGHA 1953 (Bernama, provided that the police believe that there 2018). is reason to believe that an individual is In addition to online gambling operators involved with applicable illegal activities and online gamblers, police have also including illegal online gambling as laid out warned that people who assist online in Schedule 1 of the POCA (1959).

216 Pertanika J. Soc. Sci. & Hum. 29 (1): 207 - 220 (2021) Online Gambling in Malaysia

Section 7(b) goes on to allows the police rely on the Ministry of Communications to detain one for up to 60 days if the police and MCMC to block IP addresses which believe they have reason to do so. Even serves as a platform for online gambling. more draconian than Section 7(b) that is However, these gambling operators easily Section 19A. (1) where at the end of the overcomes this problem by switching their 60-day detention as provided for in Section IP address and they can be readily accessed 7(b), the Prevention of Crime Board has the by Malaysians again until MCMC takes option of subjecting the culprit to a 2-year note and blocks the new IP address (Dewan detention that may be renewed indefinitely Rakyat, 2019). for 2 years each time with no number of Besides blocking online gambling times the detention may be renewed. websites, the MCMC also has been working While the arbitrary detention is to clamp down on spam Short Messaging draconian, to say the least, it is important to Services (SMS) promoting gambling note for the purpose of this article that apart activities including online gambling. In the from the syndicates, individuals suspected second half of 2019 alone, MCMC directed of assisting, renting to, or frequenting illegal telecommunications corporations to end the online gambling operations may be dealt services of over 5,800 numbers promoting with under the provisions of the POCA gambling-related activities (Noor, 2019). (1959) and potential be detained for an Such usage of network facilities is an offence indefinite period of time. under Section 233 of the CMA 1998 which states that anyone who creates and initiates Communications and Multimedia Act the transmission of any communication 1998 which is false with the intention to annoy or harass another person commits an offence Another important but non-gambling and carries a maximum fine of RM50,000 specific piece of legislation is the CMA or jail term of 1 year or both. (1998) which plays an important role On the other hand, Section 263(2) of in the efforts to clamp down on online the CMA 1998 directs licensees to assist gambling as its provisions empower the the MCMC or other authorities as far as Malaysian Communication and Multimedia reasonably necessary to enforce national Commission (MCMC) to block the websites laws. This provision clearly states that a used as a platform for online gambling licensee shall assist the MCMC in enforcing and also advertisement of online gambling the law upon written request. In the case of platforms. online gambling, MCMC has been using One of the main problems that the police its power to ensure that Internet Service face today in dealing with illegal online Providers (ISP’s) assist them in the blocking gambling is that the server is not located in of such websites. Malaysia but overseas. Hence local police

Pertanika J. Soc. Sci. & Hum. 29 (1): 207 - 220 (2021) 217 Guru Dhillon, Lee Sook Ling, Maran Nandan, and Jason Tze-Xi Nathan

Contracts Act 1950 that could be caused by a myriad of reasons. Besides those Acts, a notable piece of However, at the end of the day, one cannot legislation relevant to the present issue run away from the painfully obvious will be the Malaysian Contracts Act (1950) conclusion that our laws pertaining to which stipulates in Section 31(1) that: gambling and betting are archaic in form and substance with a dire need for a proper “Agreements by way of wager are review to update and bring it up to speed void; and no suit shall be brought with the current demands that come along for recovering anything alleged to be with the internet era. won on any wager, or entrusted to any The online betting industry has brought person to abide the result of any game with it new challenges and headaches to or other uncertain event on which any regulators and enforcement agencies across wager is made.” the world as they seek to find lasting and The above section is general in its scope impactful solutions. At the same time on the and wide-ranging enough to include online local front, relevant agencies and authorities betting as it is still a form of wager. The must not shirk from their duty to step up and consequence of the above provision onto ensure that this issue is tackled before it gets the online betting scene will be that local out of hand. bettors will have no remedy to recover their bets should the company or syndicate in ACKNOWLEDGMENTS which they gambled with decide not to pay The authors would like to extend special the winners. While not specifically meant to gratitude to the Ministry of Higher Education target online gambling, this provision may for providing an FRGS grant which has serve as a deterrent to potential patrons of made the publication of this article possible. online gambling operations. The authors would also like to extend their heartfelt gratitude to Multimedia University CONCLUSION for providing them a platform and their The key findings of this study are that (1) colleagues for the help and support extended online gambling activities are becoming throughout the writing of this article. increasingly widespread in Malaysia and (2) existing legislation is in need of reforms REFERENCES to better regulate online gambling. The lack Andrews, C. (1909). The importance of the enforcement of reported cases despite the increasing of law. The Annals of the American Academy of prevalence of online gambling in the day- Political and Social Science, 34(1), 85-89. to-day life of a Malaysian and increasing https://doi.org/10.1177/000271620903400111 number of newsflashes about Malaysian Bernama. (2016, July 15). Stop online gambling authorities cracking down on illegal online or face action under Poca, say police. Free betting operators is an interesting situation Malaysia Today. https://www.freemalaysiatoday.

218 Pertanika J. Soc. Sci. & Hum. 29 (1): 207 - 220 (2021) Online Gambling in Malaysia

com/category/nation/2016/07/15/stop-online- Communications and Multimedia Act (1998) (Act gambling-or-face-action-under-poca-say-police/ 588).

Bernama. (2017, February 14). Law to be amended Contracts Act (1950) (Act 136). to tackle online gambling. Free Malaysia Today. Department of Statistics Malaysia. (2010). https://www.freemalaysiatoday.com/category/ Population distribution and basic demographic nation/2017/02/14/law-to-be-amended-to-tackle- characteristic report 2010. https://www.dosm. online-gambling/ gov.my/v1/index.php?r=column/ctheme&menu_ Bernama. (2018, July 6). 25 online gaming suspects id=L0pheU43NWJwRWVSZklWdzQ4TlhUU held under Poca this year. Free Malaysia Today. T09&bul_id=MDMxdHZjWTk1SjFzTzNkRX https://www.freemalaysiatoday.com/category/ YzcVZjdz09 nation/2018/07/06/25-online-gaming-suspects- Dewan Rakyat. (2019). November 12 debate (Bil. 50). held-under-poca-this-year/ https://www.parlimen.gov.my/files/hindex/pdf/ Bernama. (2019, June 24). 14,759 nabbed since Jan in KKDR-12112019.pdf nationwide crackdown on illegal gambling. New Dhillon, G., & Miin, N. Y. (2013). The regulations Straits Times. https://www.nst.com.my/news/ and control of online betting in Malaysia. UUM crime-courts/2019/06/498873/14759-nabbed- Journal Of Legal Studies, 4, 79-97. jan-nationwide-crackdown-illegal-gambling Duncan, A. M. (2015). Gambling with the myth of the Bernama. (2020, April 22). Police cripple American Dream. Routledge. RM135,000-a-day online gambling syndicate. Juniper Research. (2016, September 16). Global Malay Mail. https://www.malaymail.com/news/ online gambling wagers to approach $1 trillion malaysia/2020/04/22/police-cripple-rm135000- by 2021. CDC Gaming Reports Inc. https://www. a-day-online-gambling-syndicate/1859339 cdcgamingreports.com/global-online-gambling- Berthelsen, J. (2013, May 1). Threat to Malaysia’s wagers-to-approach-1-trillion-by-2021/ gaming tables? Asian Sentinel. http://www. Goh, J. (2017, January 27). Mobile tech a game asiasentinel.com/index.php?option=com_conte changer for NFOs. The Edge Markets. https:// nt&task=view&id=5378&Itemid=229 www.theedgemarkets.com/article/mobile-tech- Betting Act (1953) (Act 495). game-changer-nfos

Camoens, A. (2020, October 2). Office of gambling Illegal gambling operations go hi-tech. (2018, July software developer raided, 40 arrested. The 6). The Sun Daily. https://www.thesundaily.my/ Star. https://www.thestar.com.my/news/ archive/illegal-gambling-operations-go-hi-tech- nation/2020/10/02/office-of-gambling-software- IUARCH562169 developer-raided-40-arrested. Ishak, S., & Bani, Y. (2017). Determinants of Chew, A. (2019, November 21). 680 Chinese crime in Malaysia: Evidence from developed held in Malaysia over online scam targeting states. International Journal of Economics and WeChat Pay users. South China Morning Post. Management, 11(3), 607-622. https://www.scmp.com/week-asia/economics/ Kaur, M. (2019, July 9). Govt to update laws on article/3038808/680-chinese-held-malaysia- gambling to include online activities. Free over-online-scam-targeting-wechat-pay Malaysia Today. https://www.freemalaysiatoday. Common Gaming Houses Act (1953) (Act 289). com/category/nation/2019/07/09/govt-to-update- laws-on-gambling-to-include-online-activities/

Pertanika J. Soc. Sci. & Hum. 29 (1): 207 - 220 (2021) 219 Guru Dhillon, Lee Sook Ling, Maran Nandan, and Jason Tze-Xi Nathan

Loo, J. M. Y., & Phua, K. L. (2016). Gambling Tan, B. (2020, January 10). Johor cops cripple participation and policies in Malaysia. Asian online gambling syndicate operated by Chinese Journal of Gambling Issues and Public Health nationals. Malay Mail. https://www.malaymail. 6, 3. https://doi: 10.1186/s40405-016-0012-1 com/news/malaysia/2020/01/10/johor-cops- cripple-online-gambling-syndicate-operated-by- Lotteries Act (1952) (Act 288). chinese-nationals/1826655 Noor, M. H. M. (2019, December 11). 5,800 nombor Zack, J. (2020, Oct 30). Online gambling suspects, telefon ditamatkan [5,800 phone numbers among them software experts, to be charged terminated]. Harian Metro. https://www.hmetro. under Poca. . https://www.thestar.com. com.my/mutakhir/2019/12/525704/5800- my/news/nation/2020/10/30/online-gambling- nombor-telefon-ditamatkan suspects-among-them-software-experts-to-be- Pool Betting Act (1967) (Act 809). charged-under-poca.

Prevention of Crime Act (1959) (Act 297). Zakaria, N. H., Kunhibava, S., Karim, M. E., Munir, A. B., & Kok, R. (2018). Malaysian blockchain Property owners who rent their premises to gambling regulatory report. University of Malaya syndicates subject to Poca. (2020, February Malaysian Centre of Regulatory Studies. https:// 3). The Sun Daily. https://www.thesundaily. law.um.edu.my/Research-UMCORS/RegTech/ my/local/property-owners-who-rent-their- UM%20-%20Malaysian%20Blockchain%20 premises-to-gambling-syndicates-subject-to- Regulatory%20Research%20Report.pdf poca-AM1961121

Racing Club (Public Sweepstakes) Act (1965) (Act 404).

Ramendran, C. (2019, June 24). Cops continue war on illegal gambling, 14,759 arrested since January (Updated). The Sun Daily. https://www. thesundaily.my/local/cops-continue-war-on- illegal-gambling-14-759-arrested-since-january- updated-LH1018827

220 Pertanika J. Soc. Sci. & Hum. 29 (1): 207 - 220 (2021)