Malaysia And Dubai – Two Possible Locations Of iGaming

Article by : Helen Dec 28, 2020

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Updated: Aug 11, 2022

Nowadays, iGaming becomes much more popular among gambling players, especially from the perspective of the current world situation. Despite brick-and-mortar casino operators making every effort to prevent the iGaming industry from occupying a significant part of the gambling market, two locations like Dubai and Malaysia have pretty high chances to be an important hub for companies. It’s been reported that gambling companies are trying to get rid of rising costs that occur because of operating out of the Philippines. The cost of providing gambling services has risen, and the new level is unacceptable for many casino operators.

The Asia Gaming Brief forum was organized on December 9 to discuss the future of POGOs. The General Manager of Cherry Interactive, Danny Too, said on the webinar: “You can set up finance, operations, and can even do online marketing out of the Malaysian office, but the key thing is that you get the permission of the federal government.” He also added: “You can get a place to work and a license from one of the states, but you need to go through the central government to go ahead. From the government point of view, it’s just a BPO, and as long as the games are not being offered in Malaysia, the government is happy to bring in these operators.” Though Malaysia has tough anti-online gambling politics, it is still attractive for casino operators.

Earlier this year, it was reported that Malaysia has started to propose attractive benefits for operators who are under the Philippines Amusement and Gaming Corp’s control. Andrea Domingo, PAGCOR’s chair, has sent a memorandum of understanding to the Office of the President where she states that in case 30% of workers are from Malaysia, the company receives a 10-year tax moratorium. Currently, Malaysia has lottery shops, Slot Clubs, a land-based casino, and horse racing.

Even though Malaysia is a Muslim country, there is especially a race (Chinese) who loves to gamble. Muslims must be 100 percent prohibited from gambling, but non-Muslims can gamble.

Dubai is another location where the concentration of international activity is currently increasing, and the appearance of the iGaming sector in its economy might be a good way of boosting tax revenues. Some Chinese casino operators don’t want to be controlled by China’s government, and they are looking for a better environment for enlargement. Dubai is a place that has favorable conditions for gambling activity.

There are strict regulations in both countries for the iGaming industry when it comes to local people. It means the operators will need to make all efforts to prevent locals from playing on the sites. Malaysia, as well as Dubai, might suspend the license if the company breaks the law. Though this fact might be a restraining factor for some gambling operators, the possible earnings are worth a try.

Land-based gambling is not legal in the United Arab Emirates because of Islamic law, and Dubai isn’t an exception. However, there are some software developers that provide licensed online games for Dubai players, meaning foreign-based operators aren’t under strict restrictions. The list of these providers includes NetEnt, Playtech, Microgaming, Betsoft, and Play N’ Go.

Another substantive deterrent is that live-dealer games and land-based properties are prohibited on territories of Dubai and Malaysia. Taking into account that this kind of gambling is popular enough and generates revenues, casino operators can’t concentrate only on iGaming. This is an important reason for maintaining land-based properties in the Philippines.

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