Malaysia to hold talks with Meta over proliferation of illegal gambling ads

Malaysian authorities are scheduled to meet with executives from Meta on September 22 to address the increasing prevalence of illegal online gambling advertisements appearing on Facebook. The discussions will center on the challenges posed by unregulated iGaming content and the platform’s apparent failure to prevent payment for such ads through credit card transactions.

Communications Minister Datuk Fahmi Fadzil confirmed the upcoming meeting during a press briefing on Sunday, stating that most of the content taken down by Facebook in Malaysia relates to gambling activities. He criticized Meta, the parent company of Facebook, for allowing the monetization of prohibited content through its ad services.

“If a gambling ad is paid for using a credit card and Facebook knows this content is illegal in Malaysia, they should block the account,” said Fahmi. “But Facebook has refused to do so.” While emphasizing the seriousness of the issue, Fahmi noted that the government’s approach will be focused on dialogue rather than punitive actions.

“We are opting for dialogue rather than punitive measures. We do not intend to ban or shut down Facebook. Many people benefit from these platforms socially and economically. But we cannot allow criminals to misuse them for profit or to commit online crimes,” he said.

The meeting with Meta comes amid growing concern over the rapid expansion of online gambling in Malaysia, which remains illegal under local law. Offshore operators continue to target Malaysian users, accepting transactions in local currency and marketing gambling services on widely used platforms such as Facebook.

Despite strict legal prohibitions and religious considerations, approximately 65% of the Malaysian population is Muslim, a faith that prohibits gambling, demand for online gaming has surged. A study by the U.S.-based National Institute for Biotechnology Information indicates that individuals of Chinese and Indian heritage in Malaysia are statistically more likely to engage in gambling activities and spend more on them.

Legal gambling avenues in Malaysia include licensed lotteries, horse racing bets, and gaming at Resorts World Genting, the country's only licensed casino. However, according to NIBI data from 2018, revenue from illegal lotteries surpassed that of all six legal lottery operators by around 60%.

Platforms operating from outside Malaysia have exploited the country's growing digital infrastructure and interest in sports. As reported by Complete Sports, factors such as widespread smartphone usage, high-speed internet access, and a young, sports-loving population are fueling online gambling at “an unprecedented rate.” Betting on badminton and the English Premier League remains particularly popular among Malaysian users.

In July, Meta updated its advertising policies on gambling-related content, stating that only advertisers authorized for specific jurisdictions and gambling types could target users in areas where they are licensed. Malaysia is listed as an unsupported market under this policy.

Nevertheless, Meta clarified that enforcement of local regulations remains the responsibility of advertisers, not the platform itself. Its policy states that Meta “is not responsible for how authorised ad accounts comply with local gambling laws and regulations.”

As authorities in Malaysia seek greater accountability from tech platforms, the country’s Commercial Gambling Management Commission is independently stepping up efforts to remove gambling advertisements and clamp down on digital promotions.

The crackdown is part of a broader government initiative to promote online safety. “We have the ability to make the internet safer, especially for children and families,” said Fahmi.

The Ministry of Communications and Digital launched the Safe Internet Campaign earlier this year, aiming to educate children and parents about the dangers of harmful online content. Since its launch in January, the campaign has reached more than 2,600 schools across the country, with a target of 10,000 schools by 2026.