Comparing Malaysia’s Gambling Scene to the Rest of Southeast Asia

3 min readUpdated May 26, 2025Jul 6, 20235:39 AM

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Southeast Asia is home to many traditional, conservative countries, meaning their stances toward gambling are a bit sterner than those of most countries in the Western hemisphere. However, this region is far from homogenous. The situation differs from country to country, while online and offshore gambling are a story of their own.

Still, where does Malaysia fit into all this? Perhaps even more importantly, how does it fare against some of its neighbors regarding the gambling scene?

What form of gambling is legal in Malaysia?

The only legal forms of gambling in Malaysia are betting on horse races (since 1961) and playing lotteries (since 1952). Sports betting, however, is illegal (both retail and online).

Now, while online sites are illegal as long as they’re hosted in Malaysia, locals are not prohibited from offshore betting. For instance, a Malaysian can choose some of the apps in this list and legally play one of many typical casino games online or bet on their favorite sporting events.

The same thing goes for the majority of countries in Southeast Asia, with a few exceptions. For instance, in Singapore, there’s a sort of state monopoly on online betting, while in the Philippines, everything is legal.

Overall, online betting is hard to regulate, so local authorities usually ignore offshore betting, making it a very popular option.

Casinos

While betting is mostly illegal in Malaysia, casinos are regulated (under some rules that we’ll discuss later). So, it’s home to Genting Resort Malaysia. Sure, it’s just this one casino, but it’s a behemoth with over 3,000 slot machines and over 400 gaming tables.

In fact, in the whole of South East Asia, there are only three countries that directly ban casinos:

Thailand

Indonesia
Brunei

Given the royal family’s proclivity for gambling, some find the last part particularly interesting.

“The only legal forms of gambling in Malaysia are betting on horse races (since 1961) and playing lotteries (since 1952).”

In Laos, casinos are legal in special economic zones only. Still, locals are not accepted. The same thing goes for betting, in general.

Also, remember that Southeast Asia is relatively close to Macau (the Vegas of the East). Needless to say, it’s hard for anyone to deal with such competition in gambling.

Is Malaysia a popular destination for gamblers?

Not exactly!

As we’ve already explained, outside of one casino (albeit gigantic) and the national lottery, there’s not much legal gambling in Malaysia.

Tourists who are interested in gambling destinations in Southeast Asia are more likely to visit:

Sihanoukville in Cambodia
Entertainment City in the Philippines

While it’s hard to pinpoint the exact numbers (due to flawed methodology), it’s widely believed that these two countries have the region’s highest number of gamblers per capita. Now, there’s a reason why this is so hard to determine. Namely, in most countries in Southeast Asia, gambling is illegal for locals either way. So, it’s hard to find someone who openly admits (even anonymously) that they’ve partaken in this activity.

For instance, in Cambodia, while casinos are regulated, all other forms of gambling are illegal. Moreover, betting in these casinos is only legal for visitors, while locals are not accepted.

Most countries in Southeast Asia have similar rules where they regulate casinos but don’t allow locals. In Malaysia, for instance, while casinos are regulated, Muslims are prohibited from participating. In this scenario, the prohibition is based on one’s religion, not regionality.

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What this means

Malaysia’s highly restrictive gambling policy, permitting only specific forms and one major casino, significantly pressures its tourism sector when compared to more liberal neighbours. While the allowance for offshore betting eases some domestic demand, it funnels potential revenue away from regulated local establishments. This conservative stance limits Malaysia’s appeal as a gaming destination against regional rivals like the Philippines and Cambodia, which attract high-spending tourists to their multiple casinos. The challenge for policymakers remains balancing religious and social norms with the economic potential of a more open, regulated gambling market that could divert revenue from unregulated offshore activities. Watch for any changes in enforcement of online betting laws.

Sarah Chen · Retail News Asia newsroom

Questions & Answers

Which forms of gambling are legally permitted in Malaysia?

In Malaysia, the only legal forms of gambling are betting on horse races, which has been permitted since 1961, and playing lotteries, allowed since 1952. All other forms of local sports betting, both retail and online, are illegal.

Can Malaysian citizens legally participate in online gambling via offshore platforms?

Yes, Malaysian locals are not prohibited from offshore betting. While online sites hosted in Malaysia are illegal, individuals can legally use foreign-based apps to play casino games or bet on sports events without facing legal repercussions.

What is the status of casinos in Malaysia, and are there any restrictions for locals?

Malaysia has one regulated casino, Genting Resort Malaysia, which is a very large establishment. However, Muslims are specifically prohibited from participating in gambling activities there, a restriction based on their religious beliefs.

Why is Malaysia not considered a popular destination for gambling tourists in Southeast Asia?

Outside of its single large casino and the national lottery, Malaysia offers limited legal gambling options for tourists. Visitors interested in gambling destinations in Southeast Asia are more likely to choose places like Sihanoukville in Cambodia or Entertainment City in the Philippines.

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