On 22 September, Malaysia’s Communications Minister, Datuk Fahmi Fadzil, will engage in discussions with representatives from Meta, the parent company of Facebook. The focal point of this meeting is the proliferation of illegal iGaming advertisements on the social media platform, which has been a growing concern for the Malaysian government.
In a conversation with the press on Sunday, Fahmi highlighted that “a significant portion of the content removed from Facebook consists of online gambling ads and posts related to gambling.” Despite these efforts, Facebook has reportedly not succeeded in preventing the use of credit cards to pay for these ads, an issue Fahmi pointedly addressed. “If a gambling advertisement is funded by a credit card and Facebook is aware that this content is illegal in Malaysia, they have a responsibility to block that account,” he stated. However, he expressed frustration that Facebook has not taken such actions.
Fahmi emphasized that the upcoming meeting aims to be “constructive.” He elaborated, “We prefer dialogue over punitive measures. Our intention is not to ban or shut down Facebook. Social and economic benefits derive from these platforms. Yet, we must ensure they are not exploited by criminals for unlawful profit or to engage in online crimes.”
The rise of iGaming in Malaysia is driven by digital accessibility and a young, tech-savvy population. Approximately 65% of Malaysians adhere to Islam, a religion that forbids gambling. Nevertheless, data from the US-based National Institute for Biotechnology Information indicates that Malaysians of Chinese and Indian descent are more inclined to gamble and spend more in doing so. While legal gambling options exist, such as lotteries, horse racing bets, and activities at Resorts World Genting, Malaysia’s only licensed casino, there is a noticeable preference for illegal gaming avenues that lack government regulation. For example, in 2018, illegal lotteries reportedly generated revenues approximately 60% higher than the combined earnings of six licensed operators.
The attractiveness of iGaming persists despite its illegal status, largely due to its accessibility and the readiness of offshore providers to handle transactions in Malaysian ringgits. Complete Sports has noted a “surge at an unprecedented rate” in Malaysian iGaming, driven by factors like smartphone penetration, fast internet, and a young population with a passion for sports. Malaysians are keen sports enthusiasts, with a particular affection for betting on badminton and the English Premier League.
Back in July, Meta announced intentions to tighten its policies concerning online gambling advertisements on both Facebook and Instagram. According to its online gambling policy, advertisers who are “authorized for a specific jurisdiction and gambling type” may target “any jurisdiction where they are licensed or lawfully permitted, barring unsupported markets,” which includes Malaysia. However, Meta asserts it is “not responsible for how authorized ad accounts comply with local gambling laws and regulations,” placing the onus of compliance on the advertisers themselves.
In the meantime, Malaysia’s Commercial Gambling Management Commission continues its independent efforts to combat online gambling ads and promotions. The Malay Mail has reported that this initiative is part of a broader government strategy to enhance online safety. “We possess the capability to create a safer internet, particularly for children and families,” Fahmi remarked.
Launched in January, Malaysia’s Safe Internet Campaign has already reached more than 2,600 schools across the nation this year. With an ambitious objective, the campaign plans to extend its reach to 10,000 schools by 2026, reinforcing the government’s commitment to online safety and education.
However, addressing the issue of illegal iGaming ads on platforms like Facebook also prompts a broader discussion about the balance between regulation and freedom of digital platforms. Some argue that stricter regulations could stifle the economic and social benefits that such platforms provide. An alternative perspective suggests that users themselves should bear more responsibility for discerning legal content from illegal, potentially reducing the burden on social media companies.
In juxtaposition, others believe that tech giants like Meta, with their advanced algorithms and vast resources, should be more proactive in monitoring and curbing illicit activities. They point out that as these platforms profit from advertising revenues, they equally share the responsibility of ensuring the advertisements adhere to local laws.
This ongoing dialogue between Malaysian authorities and Meta mirrors a global conversation about the role of major tech companies in policing content on their platforms, especially concerning industries that are regulated differently across jurisdictions. It remains to be seen how these discussions will shape the future landscape of digital advertising and regulation in Malaysia and beyond. As the meeting approaches, stakeholders from various sectors will be keenly observing the outcomes, hoping for a resolution that balances the interests of all parties involved while safeguarding public interest.
Topics: India · China · Financial Results · Gambling Regulation · Online Casino
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