Stablecoins Are Killing Bank Blocks — and Malaysia‘s iGaming Industry Will Never Be the Same

Malaysia’s iGaming industry is navigating a year of stark contrasts in 2026. On one side, new legislation is giving regulators sharper teeth, while traditional operators grapple with shifting margins and offshore competition. On the other, cryptocurrency payments are quietly rewriting how players engage with online platforms, side‑stepping banking blocks and accelerating transaction speeds. This article examines the latest news shaping the sector: Genting Malaysia‘s Q1 performance, the Ascot Sports football betting licence, the rise of stablecoin gambling, and the government’s intensified enforcement drive under ONSA.

Genting Malaysia Q1 2026 — Revenue Up, But Losses Mount

Genting Malaysia Berhad (GENM) reported total revenue of RM2.87 billion (US$724 million) for the first quarter ended 31 March 2026, a 10% increase year‑on‑year. The flagship Malaysian property, Resorts World Genting, saw revenue rise 3% to RM1.67 billion, driven by higher contributions from the gaming segment. The parent company, Genting Berhad, recorded a net profit of RM101.1 million, a dramatic turnaround from RM4.6 million a year earlier, on revenue of RM6.66 billion.

However, GENM posted a net loss of RM25.2 million (US$6.4 million), reversing a net profit of RM52 million in 1Q25. The loss was largely attributed to pre‑opening expenses at Resorts World New York City (RWNYC), which launched New York City‘s first full‑scale commercial casino on 28 April 2026. Profit before tax fell 77% year‑on‑year to RM43.1 million, partly due to costs associated with RWNYC’s transition to a commercial casino.

In the UK and Egypt, revenue increased 11% to RM460.7 million, with contributions from the newly acquired Genting Casino Stratford helping to offset geopolitical tensions in the Middle East. In the US and the Bahamas, revenue jumped 39% to RM694.4 million, driven by the consolidation of Empire Resorts. Looking ahead, the company said it remains cautious but is focused on maximising operations in Malaysia and New York, while leveraging Visit Malaysia Year 2026 through ongoing enhancements to its integrated resort experience.

Ascot Sports — First Legal Football Betting Licence Finally Takes Shape

After years of uncertainty, the reissuance of a sports betting licence to Ascot Sports marks a significant milestone for Malaysia‘s iGaming sector. Berjaya Corporation acquired a 70% stake in Ascot Sports for RM525 million cash, with an initial payment of RM400 million and a deferred payment of RM125 million. The government grants the licence as non‑exclusive and will renew it annually.

Key licence conditions include:

• Initially, Berjaya Sports Toto can use only 220 of its 680 West Malaysia outlets as distribution points. The company also accepts bets via telephone.
• Ascot Sports will focus on pre‑match 90‑minute bets for major European soccer leagues (English Premier League, Serie A, Spanish Primera Liga and Bundesliga), with live betting to follow later.
• Online betting is not permitted. The company will set up an information website displaying odds and product offerings to speed up telephone betting. Live streaming of sports events is planned.

The launch is expected to coincide with the new English Premier League season in August or September 2026. Analysts estimate the legal football betting market could eventually be worth RM20 billion, comparable to the illegal market. However, near‑term profit enhancement for Berjaya Corp is expected to be minimal (0.2%–0.5%) due to distribution constraints. The government has not yet confirmed the licence officially, but Berjaya Corporation announced it to Bursa Malaysia on 12 May 2026.

Crypto Payments — Stablecoins Are Reshaping Player Behaviour

The most significant structural shift in Malaysia‘s iGaming industry is the rapid adoption of cryptocurrency payments, particularly stablecoins. Crypto casinos already account for roughly 17% of all iGaming bets globally, and Asia represents around 35% of crypto gambling adoption, a share projected to hit 40% by 2026. Within that wedge, stablecoins have won decisively: 80% of crypto casinos now offer USDT or USDC options, and USDT alone commands around 60% of Web3 gambling transaction share.

For Malaysian players, the appeal is practical rather than ideological. Traditional banking channels are slow — weekends and public holidays delay processing, and international transfers involve multiple intermediaries. Cryptocurrency sidesteps those issues, offering near‑instant transactions that operate around the clock, with no bank holidays or waiting for clearing houses. Many players now ask why withdrawals can’t happen in hours rather than days, and platforms that fail to adapt risk losing members to competitors.

Stablecoins also side‑step the bank‑blocking regimes that hobble fiat deposits in restrictive jurisdictions. Payment restrictions and card‑network blocks stop mattering. Settlement is on‑chain, near‑instant, and traceable only at the chain level — an operational upgrade that has made crypto a core payment channel for many offshore operators serving Malaysian users.

The regulatory environment for crypto in gaming remains a grey area. Bank Negara Malaysia has issued guidelines for digital assets, but specific rules for using cryptocurrency in online gaming have not been comprehensively laid out. Nevertheless, the best online casino Malaysia options have implemented crypto in ways that feel secure and straightforward, building player confidence even without explicit local regulatory blessing.

ONSA Crackdown — Up to RM10 Million Fines for Non-Compliant Platforms

The government has significantly escalated its regulatory toolkit with the Online Security and Safety Act (ONSA) , which came into effect on 1 January 2026. ONSA applies to social media platforms, and Communications Minister Fahmi Fadzil has warned that platforms continuing to allow online gambling content face fines ranging from RM1 million to RM10 million. A regulatory sandbox is currently being conducted to examine age‑limit mechanisms and ensure platforms fully understand their duties.

The scale of the problem is massive. Between 1 January and 24 May 2026, MCMC ordered social media platform providers to take down 271,472 pieces of content related to online scams and gambling. Of the public content removal requests received, 91% were related to online gambling and scams. Within that figure, 61% was gambling content, while scams accounted for 30%. Communications Minister Fahmi Fadzil also disclosed that 81% of online gambling content flagged for removal was detected on Facebook, while 58% of scam content was also on the same platform.

The government has also raised the betting duty on gaming companies to 8% from 6%, effective from June 2026. The effective rate of betting duty is now 7.36%, up from 5.52% previously. Gaming analysts do not expect a huge near‑term impact, but warn that higher duties could accelerate migration from legal to illegal betting in the long run.

ONSA Penalties for Online Gambling Content

Syndicate Raids — Policing the Underground

Law enforcement has intensified physical operations against illegal gambling syndicates. In Ops Angsa (11 February 2026), police arrested 388 individuals across 17 locations in Kuala Lumpur, Selangor and Penang, including eight foreign nationals. The syndicate developed online gambling platforms for domestic and international markets. In April 2026, Johor Immigration crippled a syndicate making RM900,000 monthly, arresting eight foreign nationals. A January 2026 raid in Kuala Lumpur led to 19 arrests. Researcher Sharifah Zulia Balqish S Agil noted that online gambling networks operate through encrypted channels and borderless servers, creating a gap between intelligence and court requirements. “Enforcement agencies need continuous legal and operational adjustments, or they risk falling behind increasingly sophisticated, technology‑adapted criminal networks,” she said.

The iGaming industry in Malaysia is being reshaped by three parallel forces in 2026. Traditional operators like Genting Malaysia are navigating international expansion costs while betting on domestic tourism recovery. The long‑awaited Ascot Sports licence is finally taking shape, though its real impact will depend on how successfully it can capture a share of the illegal market.

Simultaneously, the government is tightening its grip with ONSA fines, betting duty increases and high‑profile syndicate raids. Yet the most disruptive force may be technological: stablecoins are making offshore betting faster, cheaper and harder to block, forcing regulators to play catch‑up. Together, these developments suggest that Malaysia‘s iGaming landscape will look very different by the end of the decade.

Official sources: https://www.mof.gov.my/ | https://www.moha.gov.my/ | https://www.mcmc.gov.my/

Sources: ASGAM, The Edge Malaysia, Bernama, Malay Mail, Quantumrun, Tapscape