Malaysia’s legal NFOs have seen improved financial performance thanks to police’s intensified efforts to crack down on their illegal counterparts
The government of Malaysia has stepped up efforts to tackle illegal gambling operations taking place on the territory of the country, The Edge Markets reports citing information from people familiar with the matter.
It has emerged that the government together with representatives from the nation’s Ministry of Finance, the Malaysian Communication and Multimedia Commission, Bank Negara Malaysia, and the local police, have met with authorized gambling operators in Putrajaya and have discussed over the course of several days possible measures that can be introduced to combat illegal gambling.
A gaming operator who attended the meetings revealed that Malaysian policymakers are “seriously looking into changing gaming laws” in order to intensify their crackdown on illegal gambling. The operator went on to say that the government has engaged in talks with industry stakeholders in order to gain better understanding of the “operating landscape.”
Gambling in Malaysia is currently regulated under the country’s Lotteries Act 1952, Common Gaming Houses Act 1953, Betting Act 1953, and Pool Betting Act 1967. However, it seems that the government has recognized the need for revised and updated regulations that should be crafted in line with the current gambling reality in the country.
Illegal Number Forecast Operators Main Target of the Looming Crackdown
According to sources, illegal number forecast operators (NFOs) will be the main target of the pending crackdown. The operator who attended the recent meeting with the government said that legal NFOs have been pressing for stricter policies against their illegal counterparts.
Malaysia’s illegal NFO market is estimated to be two to three times larger than the regulated one. However, legal operators saw improvement in their performance during the quarter ended March 31, 2019, after the local police and competent government agencies have intensified their efforts against illegal gambling operations.
It has also become known that legal NFOs are pressing for curbs that would affect not only their illegal counterparts but also gamblers who engage in illegal activities. Such gambling customers can thus face fines and prison time, if the government introduces measures targeted at them.
Listed NFOs Magnum and Berjaya Sports Toto (BToto) both reported decent financial results during the most recent quarter, a report by AllianceDBS Research says. Analysts also point out that the improved performance could be attributed to “stricter enforcement by the authorities to clamp down on illegal NFOs.” The crackdown on such unauthorized operations has become particularly intense in the second half of the 2018 financial year.
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