Malaysian trade organization insists on tougher enforcement to prevent online gambling
An organization that unites Chinese businesses in Kota Kinabalu, Malaysia, the Kota Kinabalu Chinese Chamber of Commerce and Industry, has urged authorities to step up enforcement and strengthen coordination among agencies to curb online gambling.
The chamber said it supports Sabah government efforts led by State Minister of Education, Science, Technology, and Innovation James Ratib.
According to the Borneo Post, Kota Kinabalu Chinese Chamber of Commerce and Industry President Michael Lui said the issue had moved beyond youth exposure and was now affecting adults, families, and business owners.
He commented, “It has caused financial distress, family breakdowns and even business closures among entrepreneurs. This is a serious social issue that requires firm and decisive action.”
Lui urged authorities to apply existing laws more strictly while requesting that the government reinforce policy frameworks and improve cooperation between departments to address the root causes behind the spread of online gambling.
He said the chamber, together with its eight affiliated educational institutions spanning kindergartens to secondary schools, was prepared to support prevention efforts through cybersecurity awareness and financial literacy programs.
Member businesses would also be engaged to better understand the risks tied to online gambling.
Speaking as President of the Sabah United Chinese Chambers of Commerce, Lui said the problem could not be addressed through moral appeals alone and required coordinated action across enforcement, education, and support services.
He mentioned having coordination between the Malaysian Communications and Multimedia Commission and the Royal Malaysia Police, noting that online gambling networks often operate across borders and regularly change their methods to evade detection.
Charlotte Capewell brings her passion for storytelling and expertise in writing, researching, and the gambling industry to every article she writes. Her specialties include the US gambling industry, regulator legislation, igaming, and more.
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The Backstory
Mounting pressure to curb digital gambling spillover
Calls for tougher enforcement in Sabah sit within a wider regional scramble to contain fast-evolving online gambling networks that blur borders and exploit gaps between regulators. Business leaders in Kota Kinabalu are warning that illicit platforms now reach far beyond youth screens into family finances and storefronts. Their push aligns with an emerging consensus across Asia that policing must move in lockstep with education, ad policing and payments controls to blunt the social and economic harm.
Neighboring markets have been testing new levers to close that gap. India’s recent actions highlight how ad surveillance, financial investigations and platform moderation can be combined to tighten the funnel through which illegal operators find and monetize users. New Zealand’s public health advocates, meanwhile, are flagging how offshore sites and scams can target communities with tailored content, underscoring the borderless nature of the risk and the difficulty of relying on moral suasion alone.
The stakes extend beyond public order. Legal gaming and lottery operators say confusion over what is permitted, particularly online, can erode consumer trust and push players toward gray markets. That raises the political cost of inaction for authorities and the operational cost for legitimate firms trying to meet compliance obligations while competing with no-rules rivals.
India’s playbook: ad monitoring meets financial probes
India has leaned on both industry self-regulation and law enforcement to restrict offshore gambling exposure. The Advertising Standards Council of India formed a monitoring cell with three domestic gaming trade groups to flag and route illegal gambling ads to regulators. Since Jan. 2 the unit has screened digital inventory at scale and by Feb. 18 had already identified 413 ads tied to offshore platforms, plus a smaller batch that breached rules on legal real money games. The initiative formalized cooperation with the Federation of Indian Fantasy Sports, the All India Gaming Federation and the E-Gaming Federation, signaling a united front between ad watchdogs and regulated gaming. Details of the pact and early results are outlined in the council’s agreement with the industry bodies, which created a dedicated screening team and fast reporting loop to the Ministry of Information and Broadcasting. Read more in the ASCI memorandum of understanding.
That upstream ad control has been paired with downstream financial scrutiny. The Enforcement Directorate has pursued cases against firms it alleges masked betting as gaming. In December 2025 the agency provisionally attached assets worth about INR1.2 billion tied to Probo Media after earlier raids froze additional deposits and shares. Probo shuttered months after India enacted the Promotion and Regulation of Online Gaming Act of 2025. Investigators say the company presented itself as skill-based while facilitating wagering and raised foreign funds through Mauritius and Cayman Islands entities. The case shows how financial probes can complement ad restrictions by choking off capital and liquidity. The agency’s actions are detailed in the Probo Media asset seizure.
Ad channels are the frontline of enforcement
Illegal operators rely on a dense web of digital marketing and payments to scale quickly. A recent think tank report in India estimated more than 1.6 billion visits flowed to four offshore brands in just one quarter, with social media and influencer promotions acting as major conduits. The group urged authorities to press global platforms to block ads, enforce takedowns and cut payment links. It also called for banks and processors to step in where ad rules alone fall short. The argument: without a coordinated clampdown on visibility and money movement, enforcement stays reactive. The recommendations and traffic estimates are in the Digital India Foundation’s call for stricter enforcement.
For markets like Sabah, ad-focused approaches can move faster than criminal prosecutions, especially against offshore actors that rotate domains and creatives. Monitoring cells, standardized takedown protocols and celebrity endorsement controls can shrink exposure while broader investigations unfold. India’s experience suggests that coupling ad hygiene with payments interdiction increases the cost for bad actors and lowers the yield from aggressive user acquisition tactics.
Cross-border reality complicates local crackdowns
Even where laws are clear, offshore sites can exploit jurisdictional gaps. In New Zealand, a Māori public health organization says online platforms have used fake profiles with cultural imagery to lure users into offshore casinos and alleged scams. Local law does not permit domestically operated online casinos, yet overseas platforms still accept New Zealand players. Public health advocates argue legalization would not guarantee ethical behavior and warn of community harm, while sports groups have opposed a licensing plan on different grounds. The outreach tactics illustrate how operators can tailor messages to vulnerable groups and challenge domestic enforcement anchored to borders. The warning from Hāpai te Hauora is detailed in the Māori public health report on online casino scams.
For Malaysia, that cross-border reality reinforces calls for interagency coordination and international cooperation. Telecommunications regulators, police units and financial intelligence teams must align to detect patterns across ads, app stores and payment trails. It also points to the value of regionwide information sharing on domains, merchant accounts and affiliate networks that underpin recurring waves of illicit marketing.
Legitimate operators push for clarity and trust
As enforcement tightens, the legal industry is retooling to meet shifting consumer habits without sacrificing compliance. The lottery sector is separating from casino and digital units to sharpen focus on responsible growth and regulator relationships. International Game Technology’s global lottery arm is rebranding as Brightstar Lottery as its gaming and digital businesses move to a new owner. Brightstar says it will emphasize modernization and responsible play across retail and online, serving nearly 90 lotteries worldwide. The move underscores how licensed firms seek to differentiate from unregulated competitors through governance and public-benefit narratives. Details on the rebrand and strategic focus are in IGT’s lottery business rebranding as Brightstar.
For policymakers, a stable legal channel can help draw players away from gray markets, but only if rules are clear and enforcement is credible. Without both, illicit sites can crowd legitimate offerings by undercutting compliance costs, ignoring age checks and leveraging aggressive influencers and affiliates.
What to watch next
Authorities in Sabah are likely to stress joint operations that combine communications watchdogs, police and financial regulators. India’s playbook offers a practical model: a standing ad monitoring cell, quick escalation to ministries, and parallel financial probes. Expect pressure on social platforms and payment gateways to expand enforcement of local laws, as well as education campaigns targeted at communities most at risk. The through line across markets is simple: curbing supply of illegal ads and payments is as important as raising awareness among users. If coordination tightens, the cost to offshore operators rises, and the balance may tilt back toward compliant providers.
