RM20 Billion in Illegal Bets, RM199 Million in New Revenue – The Great Divide in Malaysia‘s Sports Betting Market

Malaysia‘s sports betting market is at a historic turning point. In 2026, the government reissued a sports betting licence to Ascot Sports, marking the first legal football betting operation in the country‘s history. Analysts now estimate that the legal football betting market in Malaysia could eventually be worth a staggering RM19.9 billion (approximately US$4.2 billion) once matured – more than twice the RM8 billion previously estimated. This figure closely mirrors the purported size of the illegal market.

At the same time, the illegal sports betting market continues to thrive. Estimates suggest that the illegal gambling market in Malaysia is now at least 1.5 to two times the size of the legal industry, with annual turnover conservatively estimated at RM18 billion to RM20 billion. The government loses an estimated RM5 billion in tax revenue each year to unregulated gambling activities.

Specifically, this article provides the most up‑to‑date sports betting statistics for Malaysia in 2026, covering market size projections, the illegal shadow economy, the new Ascot Sports licence, regional comparisons, and future growth drivers. In addition, all figures are drawn from official sources, industry reports and financial filings.

Malaysia Sports Betting Market – Key Statistics (2026)

Malaysia‘s Sports Betting Market Size – From RM8bn to RM20bn Potential

The most significant development in Malaysia’s sports betting market in 2026 is the dramatically increased estimate of its potential size. Following the reissuance of a sports betting licence to Ascot Sports, analysts now believe the legal football betting market could eventually be worth a staggering RM19.9 billion once matured – more than double the RM8 billion previously estimated and roughly comparable to the size of the illegal market.

This revised projection reflects the enormous pent‑up demand for regulated sports betting in Malaysia. In fact, for decades, football betting – the most popular form of sports wagering in the country – has been almost entirely illegal. Consequently, the new licence opens the door for legal operators to capture a significant share of this demand.

The broader Malaysian gambling market, which includes casinos and number forecast operators (NFOs), is projected to grow at a compound annual growth rate (CAGR) of 5.4% from 2026 to 2032. Specifically, sports betting is expected to be the fastest‑growing segment, driven by mobile adoption and digital payments.

Smartphone penetration in Malaysia reached 99% in the third quarter of 2024, well above the Asia‑Pacific average of 81%. This near‑universal access to mobile devices has fundamentally reshaped how Malaysians engage with sports betting. By 2026, most players access betting platforms through smartphones rather than desktops, and mobile internet usage now averages over four hours daily.

Key market drivers include:

• Expansion of online betting platforms – Digital platforms enable convenient participation and attract younger players.
• Rising sports enthusiasm – Football remains the dominant sport for betting, with the English Premier League, Serie A, Spanish Primera Liga and Bundesliga attracting significant wagering activity.
• Digital payment adoption – E‑wallets such as Touch ‘n Go eWallet, Boost, GrabPay and FPX simplify betting transactions.
• Tourism growth – Integrated resorts attract international visitors who engage in sports betting.

Legal vs Illegal – The Battle for Market Share

For instance, Malaysia‘s illegal gambling market generates RM18‑20 billion annually, costing the government RM5 billion in lost tax revenue. Illegal NFOs offer daily draws, 24/7 mobile access and higher payouts – advantages legal operators cannot match. As a result, the illegal market is now 1.5‑2 times larger than the legal industry. Between January and May 2026, MCMC ordered the removal of 271,472 pieces of gambling‑related content, with 91% related to scams and gambling and 81% detected on Facebook. Prime Minister Anwar Ibrahim has stated that tackling illegal gambling is integral to protecting national revenue, but enforcement is challenging as offshore platforms can rapidly open and close. For instance, legal NFO revenue has remained flat for years: Sports Toto‘s nine‑month revenue fell to RM4.49 billion (from RM4.83 billion), and net profit dropped to RM126.32 million.

Illegal Gambling Market Estimates (2026)

The Ascot Sports Licence – Malaysia’s First Legal Football Betting Operation

Specifically, in 2026, the Malaysian government reissued a sports betting licence to Ascot Sports Sdn Bhd, controlled by Berjaya Corporation chairman Vincent Tan. Berjaya acquired a 70% stake for RM525 million cash. The non‑exclusive licence is renewed annually and allows bets on overseas sports only. Online betting is prohibited. Initially, only 220 of Berjaya Sports Toto‘s 680 West Malaysia outlets can accept bets; bets are also accepted via telephone. Ascot will focus on pre‑match 90‑minute bets for major European soccer leagues, with live betting to follow. Launch is expected for the English Premier League season in August/September 2026, missing the FIFA World Cup. Analysts estimate the legal football betting market could eventually reach RM20 billion – more than double earlier estimates and comparable to the illegal market. Near‑term profit enhancement for Berjaya is minimal (0.2%-0.5%) due to distribution limits. Political sensitivity makes additional licences unlikely soon.

Southeast Asia and Global Sports Betting Statistics – How Malaysia Compares

Southeast Asia‘s sports betting market reached US3.9 billion in 2025 and is projected to grow to US8.6 billion by 2034 (8.93% CAGR). The Asia‑Pacific region accounted for 38% of global online gambling users in 2023. Globally, the sports betting market grew from US108.9 billion in 2024 to US119.3 billion in 2025 (4.9% CAGR), with online gambling alone expected to hit US153.6 billion by 2030(11.34.2 billion) sports betting market is significant within ASEAN, though smaller than giants like China and South Korea. Malaysia’s 5.4% overall gambling CAGR is more modest, but the sports betting segment is expected to grow faster. The Southeast Asia iGaming market is surging at 21% CAGR (US1.27bn in 2024 to US8.3bn by 2034), driven by 99% smartphone penetration and 5G.

Regional Sports Betting Market Comparison

Future Outlook – Illegal Market and Key Growth Drivers

The outlook depends on Ascot Sports‘ launch, enforcement, and new regulations. If Ascot succeeds, non‑exclusive licence could allow other operators, but no application process exists. MCMC’s site‑blocking (271,472 removals) has limited impact as offshore operators adapt. A new online gambling bill (late 2026) may add payment blocking and crypto restrictions. The government is also finalising a point of consumption tax. The market is projected to grow at 5.4% CAGR through 2032, with sports betting as a key driver – especially if online betting is eventually permitted. 5G and AI will accelerate mobile‑first betting.

Official website: https://www.mof.gov.my/

Sources: The Edge Malaysia, 6Wresearch, iGamingExpert, Bernama, IMARC Group, Grand View Research, Research and Markets, Statista

Specifically, the reissuance of a sports betting licence to Ascot Sports opens the door to a legal football betting market with a potential mature value of RM19.9 billion – roughly matching the size of the illegal market. However, the illegal market continues to thrive, generating an estimated RM18 billion to RM20 billion annually and costing the government RM5 billion in lost tax revenue.

Enforcement is intensifying. MCMC ordered the removal of over 271,000 pieces of online gambling content in early 2026, and lawmakers expect a new bill targeting online gambling in late 2026. The government also expects itself to finalise a point of consumption tax to capture some of the illegal market’s turnover.

The overall market is projected to grow at 5.4% CAGR through 2032, with sports betting as the fastest‑growing segment. For investors and industry observers, the key questions are whether Ascot Sports will launch successfully, how effectively the government can enforce against illegal operators, and whether the new regulatory framework will create a sustainable legal market. For now, the foundation is being laid for a significantly larger legal sports betting market in the years ahead.

Official website: https://www.mof.gov.my/

Sources: The Edge Malaysia, 6Wresearch, iGamingExpert, Bernama, IMARC Group, Grand View Research, Research and Markets, Statista, Berjaya Corporation announcement