Over the last few months, Malaysia’s political landscape has started showing signs of increasing instability, posing a direct threat to the country’s gambling market. While Malaysia has always been a Muslim-majority country, a Malaysian multinational company known as Genting Berhad was first granted a casino licence to operate there more than 50 years ago in 1969.
Even though Resorts World Genting remains the country’s only physical casino location, it has come under severe threat from recent political turmoil. In Pahang, where the casino is situated, Malaysia’s Islamic party, Parti Islam SeMalaysia (PAS) has threatened to immediately shut it down if it wins the state majority in the upcoming elections.
Despite receiving support from some of the local population, the proposal has sparked an enormous country-wide debate surrounding the issues of politics, religion, and the long-term economic impacts. However, as is the case all around the world, gambling has thrived in Malaysia over the past five decades and the shutting down of the casino has caused significant uncertainty.
Offshore Alternatives
Fortunately, the online casino industry in Malaysia hasn’t been completely stifled in the modern world. As a result of the massive growth and popularity of the iGaming industry, many offshore sites have provided welcome alternatives for Malaysian players looking for ways to play despite strict restrictions in the country.
This means local gambling enthusiasts can still play their favourite casino games via offshore platforms. For players searching for the best MY online casinos, a wealth of options exist. However, players should be careful to only play on sites that have been checked and verified by professionals to ensure they are safe, licensed, and adhere to international standards relating to things like online security and fairness.
According to crypto expert Michael Graw, many offshore casinos offer the choice to play with cryptocurrency. This means they are able to offer additional benefits like secure and anonymous transactions and more privacy for players who need it. As these platforms also often include perks like better bonuses and a wider option of games, they are proving to be very popular among Malaysian gambling enthusiasts who don’t have access to local options.
However, despite these options being available now, the political situation in the country makes it unclear what the future may look like. To that end, gambling restrictions may be tightened even further if the PAS has its way.
The PAS and its Anti-Gambling Agenda
Over the past few months, the Parti Islam SeMalaysia (PAS) has continued its rise throughout Malaysia and has gained significant influence in key areas throughout the country. Due to its Islamic basis and election approach, the PAS has been pushing hard to close Malaysia’s only in-person casino.
The controversial part is that the party has essentially based a large portion of its campaigning efforts on outlawing gambling throughout the country. While this may seem extraordinary, Malaysia’s population has traditionally been majority Muslim, though ethnic tensions have always been rife too. It is well known that gambling is frowned upon by many Muslims and is considered to be haram under Islamic law.
The targeting of Malaysia’s only brick-and-mortar casino by the PAS during its election campaigning has been no coincidence. By winning 49 seats in the Malaysian parliament in 2022, the PAS’s rise to power has been nothing short of staggering. However, the party’s values will undoubtedly result in significantly harsher gambling laws being imposed and likely will be the final nail in Genting’s coffin.
PAS’s Proposal To Close The Genting Casino
It’s understood throughout Malaysia that the PAS’s proposal to permanently shut the doors of the Genting Highlands casino is purely based on its firm commitment to basic Islamic principles. Mr. Andansura Rabu, PAS’s deputy commissioner in the Pahang region, recently emphasised that all forms of gambling are fundamentally harmful and entirely inconsistent with teachings in the Quran.
Andansura Rabu; however, did acknowledge that outlawing gambling and closing the nation’s only casino would have far-reaching impacts and would undoubtedly require significant constitutional and legal considerations. At the same time, he accepted that any attempt to impose stricter gambling laws would have to be in line with Malaysia’s revered constitution and basic laws.
Moreover, despite threats to shut down the casino, political dominance in the Pahang region may not be enough for the PAS to shut the doors of the decades-old casino and could require additional support from the federal government. The move from the PAS to campaign on imposing Islamic-based moral governance and values garnered the party significant support initially. However, critical locals have now begun expressing their concern over the economic impacts and the potential for overreach.
How Did Malaysia Get To This Point?
Due to Malaysia’s historic and traditional Islamic roots, gambling has always been faced with some stringent laws and regulations. The authority to renew gambling licences, which must be renewed every three months, lies solely with the federal government.
While the federal government has maintained its traditional stance on gambling, it’s allowed the Genting Highlands to operate a brick-and-mortar casino as it contributes more than $1.5 billion per annum to the economy. Over the previous fifty years, the federal government has successfully balanced these significant economic benefits with important religious and social concerns.
However, this finely balanced relationship has recently come under threat due to the rise of the PAS and its ever-increasing national support. Malaysia’s only resort-styled casino has been and continues to be a major contributor to the economy, indirectly benefiting thousands of Malaysians and their quality of life.
Closing the resort will likely have a negative impact on the local economy, resulting in thousands of lost jobs, and decreasing the quality of life for countless citizens. As a result, the proposed shutdown has become a critically complicated issue when the potential economic fallout and job losses are factored in.
Moreover, Malaysia’s Prime Minister, Anwar Ibrahim firmly ruled out the possibility of a second casino resort being built in the country. This is despite the large financial and economic growth, indicating the country’s firm commitment to uphold traditional Islamic law and values in line with the majority of their population.
Political Turmoil And Gambling In Malaysia
As of September 2024, the PAS, forming part of a strong opposition coalition, retains control of four of the 13 legislative states in Malaysia. Importantly, experts are projecting the Islamic party to soon win control over the Pahang region, which is exactly where the country’s only casino is located.
However, despite it being the largest single party in Malaysia’s lower house of parliament, the PAS’s attempts to shut the casino using state law will face a stiff challenge from federal lawmakers. It’s also well known that the current federal government is in favour of the casino remaining open for the time being due to its significant economic and job creation contributions.
Currently, the Genting casino is an incredibly lucrative moneymaker for the country’s government. Not only does it pay a significant amount of yearly tax, but also pays duties on casino machinery and an enormous annual fee. A recent legal attempt from the Kedah state government to close down regional gambling outlets has been caught up in the legal systems for months on end. Many theorise that a political conflict between federal and state laws is to blame.
However, it seems the issue is a physical representation of much more profound political turmoil in the country. Further demonstrating this is the recent controversy between influential Malaysian conglomerates Berjaya and Genting and Prime Minister Anwar.
It was leaked that multinational corporations had received authorization to construct a second casino in Forest City. This was apparently being constructed in conjunction with the troubled Chinese property development known as Country Garden.
The report sparked nationwide outrage leading to Anwar denying it was true. However, he did later admit that Malaysia did not need a second casino and would rather focus its future efforts on beneficial industries such as AI and green energy transition.
Impacts On The Broader Gambling Industry In Malaysia And Asia
It’s undeniable that the topic of gambling has always been a highly controversial topic in Malaysia. Despite the Genting casino being the only legally operating casino in Malaysia, it’s also well-documented that the online and underground gambling industries are thriving in the country.
The underground nature of gambling in Malaysia is becoming an increasingly damaging problem for the government to deal with. Not only is the underground gambling market unregulated and illegal but it also cannot be taxed, resulting in the government and its citizens losing billions of dollars each year.
At the same time, while many Malaysians, especially those who strictly follow Islamic tenets, frown upon gambling, other demographics in the country do not hold the same opinion. This is especially true for many residents originating from countries bordering Malaysia where the gambling industry is booming and not viewed as fundamentally sinful.
At the end of the day, Malaysia has two choices when it comes to gambling regulations in the country. Firstly, it can maintain its conservative and traditional approach, frowning upon the practice and eventually outlawing it altogether.
Conversely, Malaysia can implement a completely different approach. This approach, used in surrounding countries like Thailand and Vietnam, involves significantly less regulation of the gambling market.
Conclusion
The future of the Malaysian gambling industry is at a crossroads. While Resorts World Genting faces potential closure due to political pressures, numerous online gambling platforms and underground alternatives are poised to fill the void.
At the same time, the rise of PAS has injected a strong conservative force into the country’s politics, and its influence is reshaping the conversation around gambling. However, even if PAS succeeds in closing Genting, the demand for gambling will persist, and online options will likely continue thriving.
