Malaysia’s legal betting market is contracting. The three number forecast operators (NFOs) – Magnum 4D, Da Ma Cai and Sports Toto – have reported flat or declining revenue for several consecutive quarters. Ascot Sports, the only company with a sports betting licence, has delayed its launch multiple times. No new licences have been issued, and there is no clear timeline for when online betting might be permitted.
The government estimates that the illegal offshore gambling market is worth RM20 billion annually – roughly the same size as the entire legal market. Legal operators face effective tax rates of up to 30%, while illegal operators pay nothing. This disparity is driving market exit and consolidation.
This article examines the factors behind betting operator exits in Malaysia, including high taxation, regulatory uncertainty, offshore competition, and the government’s cautious approach to licensing.
Number Forecast Operators – Declining Revenue and High Taxes
The number forecast operators (NFOs) are the backbone of Malaysia’s legal gambling market. Magnum 4D, Da Ma Cai and Sports Toto have operated for decades, selling lottery tickets through thousands of retail outlets nationwide. However, their business model is under severe strain.
Revenue has stagnated. NFOs have reported flat or declining sales for several years. The COVID‑19 pandemic accelerated the shift to online alternatives, but NFOs are not permitted to sell tickets online. Customers who prefer digital convenience have migrated to illegal offshore lottery sites.
Tax rates are punitive. NFOs pay multiple layers of tax: gaming tax, pool betting duty, sales and service tax, and various state‑level levies. The effective tax rate is estimated at 30% or higher. By comparison, illegal offshore lottery sites pay nothing.
The government has not adjusted the tax regime to reflect changing market conditions. Industry groups have called for tax relief, but no action has been taken. Some analysts predict that at least one NFO may exit the market within the next five years if conditions do not improve.
Share prices reflect this pessimism. Berjaya Sports Toto’s share price has declined by over 30% from its pre‑pandemic peak. Magnum’s shares have fared similarly. Investors are pricing in continued decline, not growth.
NFO Revenue and Tax Overview (2025 Estimates)
| Operator | Estimated Annual Revenue | Effective Tax Rate | Trend |
|---|---|---|---|
| Berjaya Sports Toto | ~RM5 billion | ~30% | Declining |
| Magnum 4D | ~RM3.5 billion | ~30% | Stable/Declining |
| Da Ma Cai | ~RM2.5 billion | ~30% | Stable/Declining |
Ascot Sports – A Delayed Launch and Uncertain Future
Ascot Sports was reissued a sports betting licence in early 2026. The company paid RM525 million for a 70% stake. The licence is non‑exclusive and valid for one year, renewable annually. Ascot Sports initially aimed to launch in time for the 2026 English Premier League season, which begins in August 2026.
However, as of May 2026, the launch has been delayed. The company has not announced a new launch date. The delay reflects the complexity of setting up a legal sports betting operation from scratch. Ascot Sports must establish retail outlets, telephone betting infrastructure, and a compliance framework – all under close government supervision.
The licence conditions are restrictive. Ascot Sports is prohibited from offering online betting. Bets can only be placed over‑the‑counter or via telephone. This significantly limits the addressable market. Most potential customers have already migrated to offshore online sportsbooks, which offer convenience and better odds.
Berjaya Corporation’s share price has not reacted positively to the licence news. Investors are sceptical that a telephone‑only sportsbook can compete effectively in a market dominated by online operators. Some analysts have questioned whether Ascot Sports will ever launch, or whether Berjaya will eventually write off its investment.
The government has not indicated whether it will issue additional sports betting licences. The non‑exclusive nature of Ascot Sports’ licence suggests that other operators could apply, but no application process has been announced. Without a clear regulatory framework, potential entrants are reluctant to commit capital.
Offshore Competition – The Unregulated Market Drain
The primary driver of betting operator exits in Malaysia is competition from illegal offshore gambling sites. The government estimates that Malaysians spend RM20 billion annually on illegal offshore gambling – roughly equal to the entire legal gambling market.
Offshore sites have several advantages over legal operators. They offer online betting, which legal operators cannot offer because they pay no Malaysian taxes. They offer a wider range of products, including online casino games, which are completely illegal in Malaysia, offer 24/7 accessibility, while legal outlets operate limited hours.
MCMC has blocked over 15,000 gambling sites in 2026. However, blocks are easily bypassed using VPNs. New sites appear constantly. The government’s enforcement efforts have slowed the growth of offshore gambling but have not reversed the trend.
The offshore market also includes illegal local bookmakers, who operate through encrypted messaging apps such as WhatsApp and Telegram. These operators are harder to detect and block. Police conduct periodic raids, but the scale of the problem is immense.
The government’s proposed point of consumption tax (POCT) is designed to level the playing field. However, the POCT will apply only to licensed operators. It does nothing to stop offshore sites. Without a clear pathway to legal online betting, the offshore market will continue to drain revenue from legal operators, leading to further exits.
Legal vs Illegal Betting Market in Malaysia (2026 Estimates)
| Market Segment | Estimated Annual Turnover | Tax Rate | Online Permitted? |
|---|---|---|---|
| Legal NFOs (lotteries) | ~RM11 billion | ~30% | No |
| Legal sports betting (Ascot Sports) | ~RM0 (not yet launched) | Undisclosed | No |
| Illegal offshore online gambling | ~RM20 billion | 0% | Yes |
| Illegal local bookmakers | Unknown (significant) | 0% | Varies |
Market Consolidation – What the Future Holds
Malaysia’s betting market is likely to consolidate. NFOs may merge or cut retail networks. Ascot Sports may never launch. No other sports betting licence applications have been made. Online betting remains illegal, making legal operators uncompetitive against offshore sites. The new gambling bill, expected in late 2026, could bring change, but its provisions are unknown. Without policy shifts, further exits are likely.
Malaysia’s legal betting operator market is under severe strain. Number forecast operators face effective tax rates of 30% and declining revenue. Ascot Sports has delayed its launch and may never operate successfully. The illegal offshore market, estimated at RM20 billion annually, continues to drain customers from legal operators.
The government’s prohibition on online betting, combined with high taxes and regulatory uncertainty, has created an environment where legal operators struggle to compete. Without significant policy changes – including tax relief, a clear licensing framework, and potentially a regulated online betting market – further exits and consolidation are likely.
The new gambling bill, expected in late 2026, may address some of these issues. However, its provisions remain speculative. For now, Malaysia’s legal betting market is in a state of decline.
Sources: Berjaya Corporation Berhad announcements, Ministry of Finance, company annual reports, The Edge Malaysia, Free Malaysia Today, New Straits Times
Why Are Betting Operators Leaving Malaysia?
Q1: Which betting operators have left Malaysia in 2026? ▼
No major operator has completely exited in 2026, but the number forecast operators (Magnum, Da Ma Cai, Sports Toto) have reported declining revenue. Ascot Sports has delayed its launch, and no new operators have entered the market. Analysts expect consolidation or exits within the next few years.
Q2: What is causing betting operators to exit Malaysia? ▼
The main factors are high effective tax rates (30% for NFOs), prohibition of online betting, competition from illegal offshore sites, and regulatory uncertainty. Legal operators cannot compete effectively with offshore sites that pay no tax and offer online betting.
Q3: Will Ascot Sports ever launch? ▼
Ascot Sports has delayed its launch and has not announced a new date. The company faces significant challenges, including the prohibition on online betting and competition from offshore sites. It remains uncertain whether the launch will proceed.
Q4: Could the government legalise online betting to help operators? ▼
The government has repeatedly stated that online betting will remain illegal. The new gambling bill is expected to reinforce this prohibition. However, some industry observers believe that the government may eventually reconsider if the illegal offshore market continues to grow.
Q5: What is the future of Malaysia’s legal betting market? ▼
The market is likely to consolidate further. NFOs may merge or reduce their retail networks. Ascot Sports may never launch. Without significant policy changes – including tax relief and a clear pathway to online betting – the legal market will continue to shrink relative to the illegal offshore market.
