Online Casino Malaysia

Gambling on the Internet has enjoyed great popularity for years. The number of players is growing steadily and the range of online casino providers in Malaysia, as well as the number of games, is also becoming more and more extensive. At the same time, the legal situation surrounding online gambling was relatively unclear for a long time. Because actually every online casino in Malaysia or playing in this was illegal until the end. Nevertheless, the aforementioned large offer existed, which was also used by thousands of Malaysian players every day. The reason for this was legislation. Since 2020, however, the legal situation for online casinos in Malaysia is different. Where can you play without any problems, what is legal and what should be avoided?

What applies to an online casino Malaysia with a Malaysian license?

Looking at the regulations that come with a Malaysian license for any online casino Malaysia, it quickly becomes clear that these are aimed at player protection and addiction prevention.

  • Absolute deposit limit: Players are allowed to deposit a maximum of MYR 5000 per month (high stakes are still possible here) across all casinos with a Malaysian license. If the limit is reached and everything is gambled away, no further gambling shall be possible in the month.
  • Limited stakes: A maximum of MYR 5 per round or spin may be wagered, regardless of game and game type.
  • Minimum spin duration: A round, spin or similar must last at least 10 seconds each (This is how you can bypass the 5 seconds) before a bet turns into a win or loss or a new round can start.
  • Limitation of additional functions: Turbo mode, autoplay and similar convenience features are prohibited.
  • Limited range of games: Table games such as blackjack or roulette as well as live casino and jackpot slots are prohibited.
  • No daytime advertising: an online casino in Malaysia is only allowed to run ads on TV or radio from 8pm to 5am.
  • Fixed player account and nationwide player file: Certainly the most critical point. Who wants to use a Malaysian licensed online casino, will necessarily have to create a fixed player account, which is then also used for all other Malaysia online casinos. All account data is centrally stored and monitored in a nationwide player file, so that, for example, the monthly deposit limit can also be controlled.

It is important to mention that all the mentioned points are only more or less applied so far. Currently, online gambling in Malaysia is still in a transitional phase and only a few online casinos have opted for the Malaysian license and adapted their offer accordingly. To what extent, for example, a monthly deposit limit or correct data in the player account are already controlled, is questionable. Nevertheless, it can be assumed that the points will indeed all be valid for every online casino in Malaysia in a short time.

Unclear legal situation for online casino Malaysia

Until 2014, gambling had hardly been dealt with in Malaysia. What was considered legal or illegal was a matter for the federal states. Consequently, they agreed on a first sufficiently comprehensive State Treaty on Gambling, but it simply left out some things – including any online casino Malaysia. Due to this diffuse legal situation, online casinos in almost all of Malaysia remained an illegal matter or rather a legal gray area. For Malaysia law in turn legalized gambling in online casinos.

Users residing in Malaysia therefore simply had to make sure to use an online casino that had a license valid for the Malaysia. Finally, in 2019, the matter was addressed once again and a new State Treaty on Gambling was drafted, this time for all federal states. On 2021, this treaty signed by all states now came into force and brings with it some strict regulations.

What are the advantages of an online casino Malaysia?

In any case, the regulations of the Malaysia licensing for an online casino but also result in various advantages. The prerequisite for this is that a player is not exactly a high roller. Those who instead belong to the leisurely sort and do not exactly spend hours every day gambling, the possible game modes should be sufficient for them. In particular, the 10-second rule for spins and rounds are then not further annoying. The monthly deposit limit, however, can actually be seen as a protection, since it makes a larger debt more difficult in any case, if not completely prevented. Gambling addiction is also combated to a certain extent.

Thus, those who interpret the strict rules more as security features can be satisfied with a licensed online casino Malaysia. Finally, a last absolute advantage is the competent jurisdiction. While with foreign online casinos a lawsuit and the like can mean all the more effort and possibly even going to a foreign court, all this remains with Malaysia online casinos also within the borders of the federal government.

The alternative: online casinos with an EU license

What was common practice until 2020 remains an alternative practice: playing at online casinos based outside of Malaysia. However, it is important that these are providers that have a valid license from an EU state. Because, as mentioned, it is the EU jurisdiction that allows just this. In addition, such a license is also important because it ensures safe use. Over the years, the licensing authorities in Malta, Gibraltar and Curacao (belongs to the Netherlands) have proven to be reliable.

All these authorities guarantee state control of the companies or online casinos licensed by them with regard to fair and industry-standard odds, proper deposit and withdrawal modalities as well as player protection in terms of personal data. The licenses by these authorities, meanwhile, are far less restrictive than these for an online casino Malaysia, as long as the general guidelines are met. That is:

  • No monthly deposit limit
  • No betting limit per spin or round
  • No minimum spin or round duration
  • Possible features like turbo mode or autoplay as well as simultaneous play on multiple stations
  • No limitation of the number of games
  • No entry in player file or the like
  • No verification via Video-Ident procedure

In addition, it should be mentioned that there are two variants among all the available online casinos: namely, those that require registration and verification and those that can be played without entering any data. For the latter, the only means of age and personal verification is the respective deposit and withdrawal service, such as Trustly. Those who value the greatest possible anonymity and data protection will not find what they are looking for at an online casino in Malaysia and will find corresponding possibilities with foreign licenses. In any case, the seriousness of the online casino and the respective service for money transfer must be considered.

What exactly speaks against an online casino Malaysia license?

The just mentioned aspects of data protection and anonymity are definitely critical points in the long run, as far as Malaysia online casinos are concerned. In particular, due to the establishment and application of a central player file, which accesses all fixed player accounts, one can definitely speak of surveillance. Especially those who want to play frequently and on a larger scale are likely to be considered under observation. In addition, there is possibly the risk of a block, which may then apply permanently and nationwide. It remains to be seen how violations of a deposit limit or the entry of false data will be punished. However, the implementation of these measures in itself also raises questions. After all, it would be easy to use other persons of the family status for additional player accounts.

The effectiveness in terms of addiction prevention is therefore only approximate. Especially since users who are looking for unlimited gambling anyway can easily find an alternative online casino with a foreign license. This will especially take place if a player finds the limited player offer not enough or simply too boring. Table games such as blackjack and roulette enjoy great popularity for a reason and will therefore continue to keep many players at online casinos outside Malaysia.

Online Casino Malaysia – are the winnings relevant for tax purposes?

Finally, the question of the tax aspect might naturally arise for many players, especially for newcomers. Especially due to the establishment of a central file for fixed player accounts, this consideration is absolutely justified. However, one can be reassured here. According to local law, winnings from an online casino in Malaysia generally do not have to be taxed. The exception applies if actually regularly high winnings achieved and arrive as a payout on the own account. In this case, you could be considered a professional gambler by the tax office, which means that income tax is due on winnings. Of course, this applies to very few players and those who are so successful will deal with the issue anyway.

Apart from that, the guidelines of the Malaysian license in online casinos make such intensive gambling all the more difficult in the future, so that those users do not need to worry about the tax aspect.

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