KUALA LUMPUR: The government is mulling a law to legalise online gambling in Malaysia, the Dewan Rakyat was told today.
Deputy Communications and Multimedia Minister Datuk Zahidi Zainul Abidin said this would allow the government to regulate and collect tax revenue from the business.
He said the government collects tax revenue from existing gambling operators in the country like lotteries, horse racing and casinos.
"However, online gambling activities are operated overseas, like from India, Thailand, and the Philippines. We are unable to collect tax if we don't (issue) licenses.
"We are proposing to the Finance Ministry to draft a bill to enable issuance of licenses (for online gambling)," he said in reply to a supplementary question from Datuk Mohd Nizar Zakaria (BN-Parit).
Earlier, Zahidi said the ministry, through the Malaysian Communications and Multimedia Commission (MCMC), was carrying out data audits on prepaid mobile numbers in an effort to curb Short Message Service (SMS) spams, including those used by online gambling operators.
This is to ensure all active numbers are verified and prevent them from being abused for crimes, including scams and promoting online gambling, he said.
"From 2018 to Oct 31, 2021, a total 20,025 phone lines were terminated due to SMS spam offences for promoting online gambling, unlicensed money-lending and others.
"Preventive measures by MCMC also covers limiting access to online gambling websites. From 2018 to Oct 31, 2021, a total 4,799 websites have been banned based on applications by the police for offences under the Common Gaming Houses 1953."
He said ongoing efforts were carried out in curbing the menace, through information furnished by the police and public tip-offs.
He said the ministry, through the MCMC, was also carrying out consumer advocacy programmes through nationwide campaigns, as well as announcements in the media to improve public awareness in preventing them from participating in online gambling.
Meanwhile, Zahidi said record from the Personal Data Protection Department revealed there were no reports of personal data being sold by telecommunication companies in Malaysia. Sports betting and online gambling are illegal in Malaysia, with gambling licensing limited to lotteries, horse racing and casinos.
There is only one legal land-based casino in the country operated in Genting Highlands.
Licenses are issued by (Betting Control Unit) the Finance Ministry.
Gambling in Malaysia is regulated under the Betting Act 1953 and the Common Gaming Houses Act 1953, while Syariah law applies to Muslim offenders.