Malaysian police are pushing for comprehensive reforms to the country’s gambling legislation, arguing that laws written in 1953 are inadequate to combat the surge in sophisticated online gambling operations that increasingly rely on social media influencers and advanced technology to evade enforcement.
The Royal Malaysian Police’s Commercial Crime Investigation Department has submitted 12 proposed amendments to modernize Malaysia’s gambling laws, which currently consist of the Common Gaming Houses Act 1953 and the Betting Act 1953.
These decades-old statutes contain no provisions for digital or remote gambling services, creating significant enforcement challenges, according to local media outlet The Malaysian Reserve.
The legal gap has become increasingly problematic as illegal online gambling operations have grown more sophisticated. From 2021 to May 2025, police submitted 4,234 website blocking requests to the Malaysian Communications and Multimedia Commission, with a dramatic surge in 2023 when requests reached 1,922 cases — more than five times the 373 recorded in 2021.
Gambling syndicates have adapted their strategies by recruiting social media influencers to expand their reach and attract new users. Last year, the Commercial Crime Investigation Department opened 28 investigation papers involving influencers promoting gambling sites, resulting in 27 arrests. Of these cases, 18 have been charged, while 10 remain under investigation.
The proposed legal reforms would introduce the term “remote gambling” into Malaysian law and establish significantly higher penalties. Under the amendments, players would face fines of up to RM100,000 ($21,000) and mandatory six-month jail sentences, while operators could be fined up to RM1 million ($210,000) and face 12-month prison terms.
The reforms would also grant the deputy public prosecutor and the Malaysian Communications and Multimedia Commission powers to block websites and bank transactions. Additionally, the amendments would permit electronic documents as admissible evidence in court and expand Magistrates’ Courts’ jurisdiction over gambling-related cases.
Despite extensive enforcement efforts under Operasi Dadu, a nationwide crackdown that has conducted 42,937 raids and made 59,815 arrests between 2019 and May 2025, authorities continue to struggle with outdated legal frameworks. The peak enforcement year was 2022, with 8,195 raids and 11,737 arrests, though figures have declined in subsequent years.
The Commercial Crime Investigation Department emphasized that current legal terminology creates courtroom challenges. Cases are frequently contested or dismissed due to ambiguous legislation, as the term “online gambling” does not exist in current Malaysian law.
Beyond enforcement, experts warn that online gambling has evolved into a vehicle for money laundering and corruption. The Centre to Combat Corruption and Cronyism noted that digital payment systems and weak enforcement have created opportunities for syndicates to move illicit funds, particularly during the pandemic when operations shifted online.
Cybersecurity consultancy Novem CS highlighted that illegal gambling platforms — often operated from the Philippines, Cambodia, and Malta — specifically target Malaysian users by offering Bahasa Malaysia interfaces and accepting ringgit payments. These operations use artificial intelligence and big data analytics to personalize betting experiences while employing cryptocurrencies and encrypted communications to evade detection.
The psychological impact has also raised concerns, with experts observing a rise in gambling-related mental health issues, particularly among young people, gig workers, and low-income earners. These platforms exploit psychological mechanisms similar to those found in drug addiction, using variable-ratio reinforcement schedules and gamified reward systems to hook users.
