PAGCOR Helping POGOs Operate Legally in Malaysia

Online gambling activities in Malaysia face restrictions due to the predominance of Muslim laws that prohibit gambling of any kind among Muslim citizens. The great news is that there are indications that the Malaysian government is now considering online gambling as a potential source of taxation revenues. That is, if the Philippine’s PAGCOR will make sure that only non-Muslim Malaysians will be allowed to play at online casino sites.

Back in September 2020, the Philippine News Agency released information that PAGCOR Chairperson Andrea Domingo has been working toward convincing Malaysian leaders to allow its Philippine Offshore Gambling Operators (POGOs) to legally offer and provide its online casino games and services in Malaysia. In fact, the PAGCOR Chair disclosed that they have already sent a Memorandum of Agreement (MOA) addressed to authorized officials in the Malaysian government.

The MOA reportedly includes instituting technology that will prohibit/deny access to Malaysian Muslims. Additionally, there is also a condition that requires gaming websites to employ Malaysians to fill up at least 30% of an entity’s Malaysia-facing workforce.

Still, it will take some time before Malaysian lawmakers will pass laws that will provide the legal framework in allowing non-Muslim Malaysians to gamble in PAGCOR-licensed online casinos Apparently, the PAGCOR Chief is already on the verge of convincing Malaysia’s leaders about the practicality of legalizing online gambling even if only for non-Muslims. In doing so, they will be able to collect the taxes that they have been foregoing for years.

Advancements in Communication Technology Currently Being Used in Carrying Out Online Gambling Activities

Advancements in communication technology allow online gambling activities to continue despite the enforcement of gambling prohibitions. In Malaysia and other Asian countries that prohibit any type of gambling, non-Muslims who are technically not violating any religious laws are allowed access to online casino sites through the combination of four (4) critical technologies, namely: Smartphone, VPN, Encrypted Messaging Systems and Proprietary APK or iASP. .

Smartphone Use in Malaysia

According to the most recent Malaysia Digital Marketing Statistics, the mobile penetration rate in the country had increased by 144.8% since 2016. While all age groups in Malaysia’s population access the Internet using smartphones for varying purposes,the average age of Internet users are young adults ranging in ages between 20 and 34 years old.

Virtual Private Network (VPN)

A VPN allows mobile phone users to enjoy privacy and anonymity in communicating with entities, particularly with the support staff of online gambling operators. VPN encryption technology masks the Internet protocol (IP) address of users in order to make their private communication untraceable and shielded from prying eyes.

Encrypted Messaging System

While the VPN masks the IP address of a mobile phone user, an ended-to-end encrypted messaging system allows online casino gamblers to communicate with an online casino  to place deposits and request withdrawals via payment processing systems and banking institutions doing business or operating in Malaysia.

Proprietary APK or iASP for Downloading Online Casino Apps

Google’s Play Store accepts downloadable online casino apps of licensed online gambling operators but subject to geographical location limitations. Mainly due to the gambling prohibitions instituted by some countries. Downloading apps at the playstore is considered safe as the platform provide enables users to utilize the Android Package Kit (APK) to safely open install the downloaded files. On the part of iPhone users, they utilize the iOS App Store Package (iASP) for such purpose.

The Mega 888 online casino for one, offers proprietary APK and iASP that verified new customers can utilize in downloading and installing the related online casino games for their smartphones.

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Doing so further protects new online casino members against cyber criminals who offer infected APKs or iASP in downloading applications for online casino games.