The government has been urged to include a comprehensive ban on all forms of online gambling in the proposed Cyber Crime Act expected to be tabled in Parliament this year.
Malaysian Cyber Consumer Association (MCCA) president Siraj Jalil said online gambling is no longer merely a moral issue, but has evolved into a major threat to cybersecurity, public safety and the country’s digital sovereignty.
He warned that illegal gambling platforms are becoming increasingly widespread and are now operating as part of transnational cybercrime infrastructure targeting Malaysians.
“There is now a clear need for a new legal framework specifically addressing online gambling because existing laws, including the Common Gaming Houses Act, are outdated and only regulate physical premises.
“Today, gambling activities are carried out through smartphones and digital platforms 24 hours a day without individuals even needing to leave their homes,” he told BH.
Siraj said the situation is made more complicated as many illegal operators are based overseas and conduct transactions using digital wallets and cryptocurrencies, while concealing their identities through virtual private networks (VPNs) and other masking techniques.
He added that international studies estimate the global illegal gambling industry to be worth between US$340 billion and US$1.7 trillion annually, while the Asia-Pacific market alone is estimated at US$4.22 billion.
According to him, Malaysia has become a prime target for online gambling syndicates due to its advanced digital infrastructure, high internet penetration and rapidly expanding digital payment ecosystem.
“If the government fails to implement a total ban, it will send a signal that Malaysia remains vulnerable to exploitation by cybercrime syndicates,” he said.
Siraj stressed that the proposed Cyber Crime Act should criminalise all online gambling activities, including operators, infrastructure providers, advertisers and users.
He said the law should explicitly classify all forms of online gambling as cybercrime regardless of the platform, technology or payment method used.
He also pointed out that countries such as Indonesia and Brunei have already implemented complete bans on online gambling activities.
Siraj further proposed granting the Malaysian Communications and Multimedia Commission (MCMC) stronger powers to proactively block illegal domains and applications, while requiring Bank Negara Malaysia and financial institutions to freeze transactions linked to illegal gambling platforms, including those involving e-wallets and cryptocurrencies.
He also called for Malaysia to develop SMS detection and filtering systems similar to those used in South Korea to curb the growing flood of illegal gambling spam messages.
“Millions of illegal gambling promotional messages received by the public are currently not being recorded, analysed or proactively blocked. Syndicates are aware of this weakness and are exploiting it,” he said.
Apart from financial losses, Siraj warned that online gambling can also lead to bankruptcy, family breakdowns, depression, substance abuse and loss of employment, making it a growing social concern beyond just cybercrime.
