Court of Appeal rules online gambling can be an offense under the CGHA

Malaysia's Court of Appeal ruled in October 2023 that online gambling can constitute an offense under the Common Gaming Houses Act 1953 (CGHA), according to a case report¹. The ruling reversed the position taken by a High Court decision in 2022, which found that Section 4B of the CGHA could not be used to establish an offense of online gambling¹.

The case is identified as Public Prosecutor v Multi Electrical Supply & Services & 105 Others, decided in October 2023². The Court of Appeal held that online gambling is an offense under both the Betting Act 1953 and the Common Gaming Houses Act 1953, even though those laws predate the internet². Its reasoning was that the laws should be interpreted broadly to cover technological change, that "betting" includes online betting, and that a "common gaming house" can include virtual spaces².

The position is not settled. A separate High Court decision in 2024 found that online gambling is "not legally illegal" because of legislative gaps, reasoning that the 1953 laws were written for physical spaces, that applying them to the internet is legal overreach, and that Parliament must legislate specifically for online gambling². Two courts have therefore given opposite rulings, and the legal confusion persists².

The two Acts at issue criminalize unlicensed gambling activities and the running of gaming houses¹. Malaysia also applies Syariah law to Muslims, under which gambling is expressly prohibited and punishable in states where those regulations apply¹. Prime Minister Anwar Ibrahim confirmed in 2024 that the government is reviewing gambling legislation to address online gambling specifically, with proposed actions including updating the Betting Act to cover online gambling explicitly and clarifying the legal status of offshore casino access². As of January 2026 the review was ongoing and no new legislation had been passed².

What it means for players

The Court of Appeal ruling strengthens the prosecution position on whether online gambling falls under the CGHA, but it does not resolve the conflict with the 2024 High Court finding¹. For people who gamble in Malaysia, the practical picture described is that enforcement is primarily focused on operators rather than individual players, and that no Malaysian player has been prosecuted solely for accessing an offshore licensed casino from home¹. Operators face fines up to RM200,000, imprisonment up to five years, or both².

Muslim players face an additional layer: gambling is prohibited under Syariah law, with penalties of fines up to RM5,000, imprisonment up to three years, and religious counseling or rehabilitation programs, though enforcement against online players is described as rare². Malaysian authorities, including the Malaysian Communications & Multimedia Commission and police, have blocked thousands of gambling websites and removed hundreds of thousands of unlawful online posts related to gambling and fraud in recent years¹. Gambling winnings are not treated as taxable income by LHDN, but large deposits into Malaysian bank accounts may prompt source-of-funds questions². The legal status of online gambling in Malaysia is covered in our guide to online gambling in Asia and our comparison of whether online gambling is legal across the region.

What happens next

The government review confirmed by the Prime Minister in 2024 was still ongoing as of January 2026, with no new legislation passed². Proposed changes include updating the Betting Act to cover online gambling explicitly and clarifying the legal status of offshore casino access². No timeline for legislation has been reported².