The Future of Casino Tax in Malaysia
Malaysia’s most popular and the place to be when it comes to gaming, is none other than the famous Malaysian destination of Las Vegas. It has been said that the people of Malaysia like to gamble more in Las Vegas than anywhere else in the world. This was evident in the early years when there were no casino facilities whatsoever in Malaysia and the casinos that did open up did not offer any form of tax concession or deposit bonus. However, with the passage of time, the government has done its best to provide comfort to casino gamers and the law on gaming is being ampered by the present government. As a result, there are many casino players from Malaysia residing in Las Vegas today.
The first move of the present government in favour of the gambling industry in Malaysia was the introduction of a law called the Gaming Revoked Area (GRA) which essentially prohibits anyone who operates an online casino from coming within a two-mile radius of a known gambling hall or casino. The law on gaming was strictly enforced before mid-2021, when it was hoped that this would attract more gambling facility to Malaysia. In the mean time however, several gaming options had already come to Malaysia such as the online Malaysia Beach Hotel and Casino, the Malaysia Ultimate Racing Games, and the Malaysia Universal Casino. All these are now fully licensed by the government and offer gamblers a choice of many games including slots, craps, roulette, blackjack, baccarat, and other casino games. There are also several hotels and resorts offering a wide range of gambling facilities. These developments have greatly helped in turning the once-dormant online gambling industry in Malaysia into a roaring success.
Recently, there has been further talk of the introduction of a complete tax on online gambling in Malaysia. This is seen as a move to curb players from evading taxes through gaming. Though the law is yet to be passed, if it passes through the National Assembly, it will effectively ban all land-based casinos. Though this is the case, the Malays and Chinese in particular are opposing the move saying that it will destroy their traditional way of gambling and make the online casinos a thing of the past.
Despite all the talk of the new tax, many players from both communities still continue to indulge in their favorite gaming activities. There are several reasons for this. The introduction of a Gaming Revoked Area Act has only resulted in a push by the government to crack down on gaming. However, some players feel that their money goes to good use and does not go to waste. That is why despite the possibility of a tax being implemented, some players still continue to play at online casinos in defiance of the new taxation.
Many gamblers also see the tax as a chance to earn more money than they were already earning before. Gamblers have been known to make thousands of dollars from simple online games. Even those who lose more frequently end up making more after the new tax has been implemented. These people continue to play knowing that they will have another chance to claw back every last dollar that they have earned from gaming in the past.
Gamers have also been successful in the past in challenging the tax. They argue that the revenue from the government should be used to create more facilities for the people. They have made similar requests before and have received no satisfactory responses from the government. Some of these requests have been approved, while others have been rejected. In addition to these requests, the players filed lawsuits against the government for violation of their rights to fair taxation. Despite winning half of their cases, their request was again denied by the Malaysian authorities.
Recently, a bill for a casino levy was introduced. This tax aims to replace the existing tax system which is characterized by heavy taxation and is disliked by the majority of gamers in Malaysia. Despite opposition from different quarters, this tax was recently approved by the cabinet and is now awaiting the signature from the President. Many players believe that the new tax will affect gaming in Malaysia negatively, but this is yet to be confirmed by the Malaysian authorities.
The future of online casino regulation in Malaysia is still uncertain. Right now, the law on online gambling in Malaysia is more or less in place. However, the central government is yet to make any official announcements regarding the future plans of its regulation. As more gaming companies move over to the Asian countries such as India and Singapore, some governments have realized the benefits of allowing these companies to set up shop in these countries since they offer better regulation and safety from fraud and violence. This is why the Indian government and Singaporean government are mutually beneficial in allowing online casino companies to operate in their territories.