Uphill battle to curb ‘elusive' online gambling menace

The Sun

3 days ago

PETALING JAYA: Despite over 173,000 pieces of harmful online content – more than half linked to illegal gambling – having being removed since January, experts said Malaysia is fighting an uphill battle against a fast-evolving cybercrime ecosystem.
Criminologist Datuk Shahul Hamid Abd Rahim said illegal online gambling continues to thrive because these syndicates are well-organised and operate in separate parts, making them harder to shut down.
'Each syndicate functions like a decentralised enterprise. One group handles website development, another manages payments – often via e-wallets or cryptocurrencies – while others focus on marketing or 'customer service',' he told theSun.
The money trail becomes harder to trace as it flows through shell companies, underground financial networks like hawala and hundi and offshore crypto exchanges, he added.
'You're not just looking at gambling. You're looking at laundering, fraud and cybercrime converging under one roof.'
A 2022 survey cited by Shahul Hamid found that over 78% of 60 youths interviewed had gambled at least once, predominantly among non-Muslim communities. The trend is now spilling into unlicensed online platforms, particularly during major sports seasons.
Communications Minister Fahmi Fadzil has recently revealed that 51% of the content flagged and removed involved unauthorised gambling activities, while another 43,000 were linked to scams.
Facebook was reported to carry the highest volume of flagged content, with TikTok close behind. Telegram was the least responsive in handling scam-related removals.
Shahul Hamid also highlighted the role of virtual private networks (VPNs), which allow users to access foreign gambling sites that cater directly to Malaysian users and accept deposits in ringgit.
'The platforms may be offshore, but the harm is local and growing,' he said.
Universiti Malaya cybersecurity expert Prof Dr Nor Badrul Anuar echoed these concerns, noting that illegal gambling websites are adept at evading blocks.
'They change domains, rotate IPs, use encryption, VPNs, proxies – whatever it takes to stay ahead. They're constantly promoting on social media too.'
He added that these sites are often gateways to more sinister activities.
'They're not just gambling hubs. They're also conduits for phishing, malware and money laundering.'
While Nor Badrul acknowledged the Malaysian Communications and Multimedia Commission's efforts, he described enforcement as a game of 'whack-a-mole'.
'New sites emerge within hours, often hosted in jurisdictions beyond Malaysia's legal reach. This makes takedown efforts slower and less effective,' he said.
'What is more worrying is that the ease of access is feeding a deeper issue – addiction,' he added.
'Gambling addiction is growing, but it's often overlooked in enforcement narratives. We're not just battling crime, we're battling a public health concern.'
Both Shahul Hamid and Nor Badrul agreed that while enforcement is crucial, it must be matched by deeper, longer-term reforms.
'There's no silver bullet. We need stronger cross-border cooperation, updated laws, better tech tools and public education. This is not just a policing issue, it's systemic,' said Shahul Hamid.