Malaysian Law on Online Casinos

The Malaysia Casino Age Limit law was recently amended to allow online casinos in Malaysia. This means that all online casinos are now required to have age limits for both members and non-members. It is a rather unfortunate law that the Malaysian government made this regulation without prior consultation from its citizens. Given that the Internet and gambling are often associated with people of questionable moral character, the government has an interest in making sure that people of this ilk do not end up tarnishing its good name by participating in online casino gambling. By having such a restriction in place, Malaysia avoids the risk of being sued by people that are unable to participate in online casino gambling due to personal circumstances.

However, it is hard to argue against the merit of such regulations. After all, what is the point of having government regulation when there are so many other issues plaguing Malaysia? There is also a concern about the safety of online gaming; after all, some jurisdictions in the world do not allow online gambling because of the threat of terrorist activity. This includes casinos based in Malaysia.

As long as one is a genuine member of an online casino, which is recognized by the Internet Service Provider (ISP) and its regional Internet Service Providers like KPNs, everyone else is fair game. This is regardless of one’s age, gender, profession or status. While one can be barred from a certain online casino for whatever reason, it cannot be said that memberships at online casinos are completely safe.

The problem with this age restriction is not only that the law is vague; it is also that many online gamblers in Malaysia do not fully comprehend the implications of the law. For instance, is the same regulation applicable to all online casinos? What if a player is signing up for a particular online casino but later finds out that it is not following the law, does he have recourse? Can he sue the casino for monetary damages?

Some online casinos have resorted to creating a loophole in the law so that they can be extremely popular, and therefore, still engage in transactions with people who have not availed of their service, thereby exposing themselves to legal action. They have done so by stipulating that members of their online casino who are above a certain age cannot gamble at their website. This creates a loophole because everyone assumes that this restriction applies only to online casinos that offer gambling services to customers over a specific age. In other words, everyone assumes that the law only applies to live online casinos. This causes problems for businesses conducting business online. They have no way of proving that they are not offering gambling services to customers, which is required under the law.

Many online casino operators have realized the loopholes in the law and have sought to create a working mechanism that will rectify the situation. Many countries around the world have their own laws concerning the operation of an online casino. Malaysia is not one of them. It is believed that this oversight has been responsible for the recent outbreak of the “Malaysian Mafia” online fraud that was facilitated by some members of the online casino industry in this country.

The Gaming and Sports Authority (GASA) are the local body that enforces the Malaysian laws on the operation of online casinos in Malaysia. Its chief function is to protect the interests of the gaming public in general, and the interests of the online casino industry in particular. GASA has repeatedly reminded the online operators of its own requirements in relation to the operation of online casinos in Malaysia. Those operators who are found to be in breach of those requirements will be subjected to disciplinary actions under the Gambling Act 2021. If any site is found to be operating an online casino when it is not permitted, or if the application of the law is found to have been circumvented by any member of the online casino industry, then the operator may be shut down permanently.

The Gaming and Sports Authority also conduct random spot checks at all accredited sites. Under the provisions of the Gambling Act 2021, all online casino operators must display a clear and conspicuous sign on the website which shall indicate that the gambling is only for adults and which must also include a separate and detailed statement of the age of the casino’s players. All documents relating to the operations of the casino and its financial and other records must be maintained by the Gambling Commission of Malaysia. These included records include the details of each and every player that has ever been a member of the casino, the identity of each and every card used in the casino, details of each and every bet made on the site and the amount of each bet and whether these were won or lost, and last but not least, the details of every transaction that has taken place in the casino.

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