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Every year, Malaysia casually leaks billions through underground bets to offshore casinos. That’s not a small leak. A river of untaxed money continues to flow out of the country. Now, while lawmakers dodge the issue at hand, the numbers continue to rise. If the government ever decided to legalise and regulate gambling properly, the payoff could be far bigger than anyone expects.
The Market That’s Already There
Malaysia could have a thriving gambling market if it wanted to. The audience already exists. They are tech-savvy and practically live online. The problem, though, is that most of their money ends up offshore. Many regularly use fully licensed international platforms with locally friendly payment options, meaning Malay players can deposit and withdraw in Malaysian Ringgit (MYR). As explained by ValueWalk, players are drawn by the range of entertainment on offer, from slots to live casinos, and easy access without restrictions, which keeps them returning to these offshore sites.
Their demand is what Malaysia’s neighbours already figured out, and then turned into a major economic driver. Look at Singapore. When the resort at Marina Bay opened, many believed it would lead to a huge moral collapse like never before seen. It proved wrong. Singapore now pulls in billions in casino revenue every year, all carefully managed and used to fund the city’s projects. In 2023, Singapore’s two integrated resorts alone generated SG$5.25 billion. That's about MYR 16.64 billion. (SG $1 ≈ MYR 3.17)
Macau’s story is similar. It built an entire modern economy around gaming and now rivals Las Vegas. Even the Philippines, once hesitant, turned its Manila casino hub into a major job creator and GDP booster.
Malaysia, on the other hand, just watches the money drift away. With even half of that kind of cash, the government could build highways, hospitals, and schools, without touching public taxes.
Jobs, Tourism, and Investment
You don’t have to look far for proof that casinos can lift local economies. Genting Highlands makes it abundantly obvious. As the only licensed casino resort in Malaysia, it's the reason many are employed (over 10,000), businesses are thriving, and tourists keep flocking in (about 28 million in 2024). If similar resorts in other regions like Langkawi, Penang, or Sabah were allowed to operate, it would mean more employment and growth to the GDP as a result.
Opening up new gaming licences could also bring in foreign investors who would want first dibs on a largely untapped market. The government could position it as part of a broader tourism and entertainment strategy that is both fun and safe. This would create more jobs and boost local businesses.
Done right, casinos could become a force that lifts entire regions instead of just being a single entertainment spot.
The Cultural and Moral Wall
Still, this isn’t a simple case. Religion and cultural values shape public life here. For Malay Muslims, gambling is strictly prohibited under Sharia law. That’s not changing. However, Malaysians gamble, and the government needs to come to terms with that. Choosing not to recognise and deal with this issue has, in fact, led to Malaysia losing up to MYR5 billion (about $1 billion) in tax every year through unregulated betting.
Right now, the underground market wins. It takes the money and offers zero protection. The state might hold the moral high ground, but it holds none of the economic returns. Legalisation would change that.
Singapore did it by charging locals a high entry fee to discourage casual gambling while welcoming tourists freely. The Philippines requires strict registration and reporting from operators. Malaysia could follow in their steps. All it entails is regulating who can play, where they can play, and how much access they have.
Bringing Bets Home
Right now, most Malaysians who gamble online aren’t doing it at home. They're playing on offshore platforms. Legalising gambling locally would keep that money in the country and strengthen the economy. Players would finally have safe, reliable platforms to use. They would enjoy slots, poker, and sports betting on trusted local sites. There'd be fair wins, real customer support, and zero need to look abroad. The government would get its share, too, through licensing fees, taxes, and staff salaries.
How a Smarter Roll-Out Could Look
A thoughtful approach would be to start small. There'd be limited casino zones, perhaps linked to just tourism or cruise terminals. Licences would be regularly tested to ensure there's no foul play. Casinos would have to be transparent about how they manage players' data. Age verification and self-exclusion features would also need to be put in place.
Revenue from gambling taxes, at least a part of it, could be used to set up mental health programs that help with addiction. That way, there are more responsible gamers.
Malaysia already has experience with regulated gambling through lotteries and horse racing. By following the steps of neighbouring countries, it would be able to carefully expand casinos and online gaming. The overall gaming market in Southeast Asia region is expected to reach US$7.37 billion (MYR 35.31 billion) in just 2 years, by 2027. Compare that with Malaysia’s gross gaming revenue, which reached US$56 million in 2023 (MYR231 million). There is a huge market gap potential up for grabs. This just goes to show how much economic growth could happen if things were fully licensed and regulated.
