Malaysian Officials to Confer with Meta on Tackling Illegal Online Gambling Ads
On September 22, Malaysia’s Communications Minister, Datuk Fahmi Fadzil, is set to engage with executives from Meta, Facebook’s parent company, to discuss rising concerns surrounding illegal gambling advertisements proliferating on the platform.
In a recent press briefing, Fahmi highlighted that a significant portion of the content removed from Facebook consists of online gambling promotions. He expressed frustration that the platform has not effectively blocked credit card transactions related to these ads, stating, “If a gambling ad is funded with a credit card and Facebook knows it’s illegal in Malaysia, they should cease that account, yet they have not done so.”
Fahmi further indicated that the upcoming meeting would focus on constructive dialogue rather than punitive action. “We prefer open discussions to outright bans,” he explained. “Facebook is a valuable resource for many, both socially and economically. However, we cannot stand by while these platforms are exploited for illegal profit or criminal activity.”
A Surge in Online Gambling Amid Cultural Dynamics
Roughly 65% of the Malaysian populace identifies as Muslim, adhering to prohibitions against gambling. Notably, individuals of Chinese and Indian descent are statistically more inclined to engage in gambling activities, often spending more than their counterparts.
While legal gambling avenues exist—such as lotteries, horse race betting, and the singular licensed casino at Resorts World Genting in Kuala Lumpur—illegal gambling appears to hold a tighter grip. Reports reveal that in 2018, illegal lottery revenues outpaced the combined earnings of six legal operations by 60%.
This trend is also evident in the realm of online gambling, where illegal platforms flourish despite regulatory constraints. Offshore operators eagerly facilitate transactions in Malaysian ringgits, fostering an environment where illegal iGaming is increasingly accessible. According to findings from Complete Sports, the online gambling market in Malaysia is expanding at an unprecedented pace, fueled by widespread smartphone use, rapid internet access, and a youthful, sports-loving demographic. Malaysians are keen on sports wagering, particularly on badminton and English Premier League matches.
Meta’s Response and the Road Ahead
In July, Meta announced its intention to tighten regulations on gambling-related ads across Facebook and Instagram. Their guidelines stipulate that only advertisers who are authorized for specific jurisdictions can target regions where they hold licenses, excluding unsupported markets like Malaysia. Meta, however, maintains that it cannot be held accountable for how these authorized accounts adhere to local gambling laws.
In the meantime, Malaysia’s Commercial Gambling Management Commission is independently working to mitigate the influence of online gambling advertisements. The initiative to combat illegal iGaming aligns with a broader governmental mission to enhance online safety. Fahmi reaffirmed, “We possess the capability to foster a safer internet environment, especially for kids and families.”
The recently launched Safe Internet Campaign has already made significant strides, having visited over 2,600 schools this year, with a goal to reach 10,000 by 2026. This effort reflects Malaysia’s commitment to safeguarding its citizens in the digital realm while balancing the economic benefits derived from social media platforms.