PETALING JAYA: A digital forensic expert has urged the government to address the billions in lost revenue resulting from illegal online gambling operations.
Prof Dr Ainuddin Wahid Abdul Wahab from the Universiti Malaya Computer System and Technology Department said the escalating cybersecurity challenges faced by licensed number forecast gaming operators have to be addressed through a comprehensive and collaborative approach.
“In the ever-evolving landscape of 4D gaming, licensed operators find themselves in a relentless battle against the rising tide of illegal gambling activities. Criminals exploit technological loopholes to disrupt licensed 4D gaming platforms,” he said, while lamenting the lack of coordination among enforcement agencies in addressing the issue.
“Despite possessing adequate tools, laws and technology, the authorities are not effectively combating illegal gambling, including its online variants.
“While inherently challenging, police have proven more adept at solving crimes such as kidnapping and murder,” he said, adding that tackling illegal gambling should be approached with a similar level of effectiveness.
“Illegal gambling syndicates, particularly those operating online, are often associated with various other criminal activities, including prostitution, drugs and unlicensed money lending.
“The impact of these illegal activities directly affect the legal operators and their revenue,” he said.
On the 2021 decision by the Kedah government to ban licensed 4D gaming outlets in the state, Ainuddin said the decision has major consequences.
“While the ban is aimed at discouraging gambling, it has inadvertently created a thriving environment for illegal operators, with projected revenue of up to RM500 million annually.
“Before the ban, the government collected a total of RM1.93 million in tax from two licensed 4D operators,” he said, adding that a blanket ban does not benefit Kedah or the country as a whole.
“The combined market capitalization of six casinos and betting game operators, as well as breweries listed on Bursa Malaysia, has decreased by RM3.38 billion since last year.
“This decline reflects investor unease following the strong electoral performance of Islamist party PAS in the 15th general election held last year,” he said.
Bukit Bintang MP Fong Kui Lun also raised concerns about illegal 4D betting syndicates, and estimated that they were raking in an annual revenue of at least RM18 billion – double that of legal operators.
Fong said the government loses approximately RM5 billion in taxes annually to illicit operations.
Ainuddin said the most constructive approach might involve implementing safeguards and advocating responsible gambling.
“To address the escalating cybersecurity challenges caused by illegal 4D gaming operators, the government must enhance the regulatory framework by updating it to shut down such operators.”
Ainuddin added that facilitating a platform for information sharing among legal 4D gaming operators, government agencies and cybersecurity experts is also crucial to eradicate the illegal gambling menace.
He said encouraging collaboration between the public and private sector to share threat intelligence and best practices would strengthen cybersecurity.
He also said developing and enforcing incident response plans for 4D gaming operators would ensure effective response and coordination to address the increasingly concerning issue.
Ainuddin emphasized the need to strengthen laws related to cyber crimes, and ensure they cover offenses specific to the betting games industry.
“Encouraging public-private partnerships would further enhance the collaborative efforts to address cybersecurity challenges, and foster a comprehensive and united approach to end illegal gambling operations,” he said.
