For anyone tracking Malaysia’s sports betting licensing file, the last few months have delivered a clear and uncomfortable verdict: the door is not opening. It is being welded shut.
The Finance Ministry’s Line: No New Licences
On August 27, 2026, the Ministry of Finance issued a statement that should end any lingering speculation about a sports betting licence. The Madani government, it said, “has never issued any new gambling licences or permits” and has not increased the number of gambling premises nationwide. The number of active licences and permits remains based on approvals granted since the 1990s.
Kedah Menteri Besar Muhammad Sanusi Md Nor’s remarks prompted the statement, in which he suggested the Finance Ministry — not state authorities — holds the power to approve or deny gambling licences in Kedah. The MOF called his comments misleading, saying they gave the impression that the federal government had approved new licences to expand gambling premises in the state.
The MOF also noted that during the 2020–2022 federal administration — which included PAS — there was never any proposal or decision to ban licensed gambling nationwide or abolish existing licences. What did change was the frequency of special draws: reduced from 22 to eight per year under Pakatan Harapan, restored to 22 under Perikatan Nasional and Barisan Nasional, then reduced back to eight from January 2023 under the Madani government.
The message is unambiguous. There is no new licence category being prepared. There is no sports betting licence on the table. The legal market is a set of closed legacy concessions.
The Anti-Online Gambling Bill: Prohibition, Not Legalisation
In February 2026, Deputy Prime Minister Fadillah Yusof confirmed that the government was drafting a bill to tackle illegal gambling, including online gambling. At the time, the proposed law had no specific name and was still under review.
The critical detail — one that operators and analysts have flagged — is what kind of bill this is. According to market analysis, the draft legislation is an enforcement-tightening measure, not a licensing or legalisation move. It deepens prohibition rather than opening a market.
Proposals under consideration have included amending the Common Gaming Houses Act 1953 to incorporate online gambling offences, or folding online gambling provisions into a proposed Cyber Crime Bill. Either way, the direction is more enforcement, not more licensing.
For anyone hoping that Malaysia would follow the path of jurisdictions that have legalised and regulated sports betting, the draft bill is the clearest signal yet that this is not happening.
The Federal Court’s Kedah Ruling: What It Actually Means
In August 2026, the Federal Court dismissed the Kedah state government’s application for leave to appeal against a ruling that had quashed its decision to stop issuing and renewing business licences for pool betting operators. The three-judge panel ordered the state to pay RM50,000 in costs.
The Court of Appeal had ruled in December 2025 that Kedah’s decision was irrational and unconstitutional, exceeding the constitutional limits of state power. The court held that the state’s action amounted to an impermissible state-wide prohibition of a subject matter reserved to the Federation.
This ruling matters for the licensing debate, but it is easy to misread. It does not mean sports betting is now legal in Malaysia. It does not mean the federal government is preparing to issue new licences. What it means is that states cannot unilaterally shut down federally licensed pool betting operations. The subject matter — gambling regulation and licensing — belongs to the federal government.
For pool betting operators, the practical result is that they can now apply for business premises licences, as the policy that blocked them has been quashed. But this applies only to existing licensed pool betting operations. It does not create a new licensing pathway for sports betting.
The Historical Context: Malaysia Almost Had Sports Betting in 2010
The current deadlock is not new. Malaysia came close to licensing sports betting once before — and backed away.
In 2010, the government initially agreed to award a sports betting licence to Ascot Sports Sdn Bhd, a firm controlled by gaming group Berjaya Corp. The stated rationale was to control the illegal betting industry, which had grown to an estimated RM10 billion annually. The government delayed issuing the licence to gather public feedback after the proposal sparked protests across the country by Muslims who are forbidden to gamble under Islamic law.
Then-Prime Minister Najib Razak ultimately withdrew the licence, citing “the political impact and from the religion point of view”. The opposition, including PAS and DAP, had been among the most vocal opponents of the idea.
Sixteen years later, the same dynamics are at play. The illegal sports betting market remains large. The religious and political opposition to legalisation remains strong. And the government’s answer remains the same: no licence.
What the Market Actually Looks Like
The absence of a licensing pathway does not mean the absence of demand. Malaysia’s total gambling market — regulated and offshore combined — was estimated at around US$2.0 billion in gross gaming revenue in 2025, with a 2026 projection of US$2.3 billion. But the regulated share is tiny. Only about 12% of the market is channelised through legal operators. The vast majority of online gambling activity — including sports betting — flows to offshore platforms that operate outside Malaysian jurisdiction.
The legal market itself is limited to three licensed number-forecast operators (Magnum, Sports Toto, and Da Ma Cai), the single land-based casino at Genting Highlands, and on-course horse-race betting at licensed turf clubs. Online casino, sports betting, poker, and bingo are all prohibited.
For operators, the strategic read is straightforward. There is no online licence to apply for because the legal market is a set of closed concessions governed by statutes written before online gambling existed. The framework is built to exclude, not to license.
What to Watch Next
Three things will determine whether the licensing picture changes in the next 12–24 months.
First, the anti-online gambling bill. If it is tabled and passed, it will confirm that Malaysia’s direction is tighter prohibition, not regulated licensing. If it stalls or is diluted, there may be room for a broader legislative review.
Second, the Federal Court’s Kedah ruling and its aftereffects. If pool betting operators successfully resume operations, it could reopen a conversation about what other forms of betting the federal government might license. But that is a big “if.”
Third, enforcement numbers. If MCMC and PDRM continue to ramp up raids, site blocks, and arrests, it will signal that the government sees prohibition as workable. If enforcement plateaus, it may indicate that the government is quietly acknowledging that prohibition is not stopping demand — the first step toward a policy rethink.
For now, the answer to the question “is Malaysia licensing sports betting?” is a clear and unequivocal no. And the policy trajectory points further away from licensing, not toward it.
FAQ
Is sports betting legal in Malaysia?
No. All online sports betting and bookmaker-based sports betting are prohibited under Malaysian law. The only legal betting is on-course horse-race pool betting at licensed turf clubs. There is no licensing pathway for sports betting operators.
Will Malaysia issue a sports betting licence in 2026?
No. The Ministry of Finance has confirmed that no new gambling licences or permits have been issued since the 1990s. The government is drafting an anti-online gambling bill that tightens enforcement rather than creating new licensing categories.
What is the anti-online gambling bill?
The Malaysian government is preparing draft legislation to tackle illegal gambling, including online gambling. Lawmakers expect it to amend existing laws such as the Common Gaming Houses Act 1953 or introduce new provisions under a proposed Cyber Crime Bill. It is an enforcement measure, not a legalisation measure.
Did Malaysia ever try to legalise sports betting?
Yes. In 2010, the government initially agreed to award a sports betting licence to Ascot Sports Sdn Bhd but withdrew it after public protests and political opposition, particularly from Muslim groups and opposition parties. The illegal betting market at the time was estimated at RM10 billion annually.
What does the Federal Court’s Kedah ruling mean for gambling licensing?
It means state governments cannot unilaterally ban federally licensed pool betting operations. Gambling regulation and licensing are federal matters. The ruling allows pool betting operators to apply for business premises licences, but it does not create a new licensing pathway for sports betting.
Sources
- Ministry of Finance Malaysia — Statement on gambling licences, August 27, 2026. Utusan Malaysia, Berita Harian, New Straits Times.
- Bernama — “Government Drafting Bill To Address Online Gambling — Fadillah,” February 15, 2026.
- Bernama — “Federal Court Dismisses Kedah Govt’s Bid For Leave To Appeal In Pool Betting Outlet Licence Case,” August 12, 2026.
- Reuters / The Star — “Malaysia scraps betting licence amid Muslim anger,” June 26, 2010.
- Henk Wolff — “Malaysia iGaming 2026: Closed and Tightening,” market analysis.
- Free Malaysia Today — “New law being drafted to curb online gambling,” February 15, 2026.
