Malaysia's casino duty is 35% of gross gaming income, raised from 25% with effect from 1 January 2019 — the first increase in over 20 years. The gaming machine duty is 30% of gross collections (up from 20%). For number forecast operators (NFOs) such as Sports Toto, Magnum and Da Ma Cai, each bet is subject to an 8% gaming tax and an 8% pool betting duty, on top of the usual corporate tax and SST.
- The casino duty is 35% of gross gaming income, raised from 25% with effect from 1 January 2019.
- The gaming machine duty is 30% of gross collections, raised from 20%.
- The annual casino licence fee was raised to RM150 million (from RM120 million) and the machine dealer's licence fee to RM50,000 a year (from RM10,000).
- Number forecast operators (NFOs) are subject to an 8% gaming tax on gross sales and an 8% pool betting duty.
Who this applies to: Casino and gaming machine operators, number forecast operators (NFOs), industry analysts, tax students, and anyone wanting to understand how gambling is taxed in Malaysia.
On this page
Every ringgit wagered at a casino table or a 4D counter carries a hidden tax — and in Malaysia, the rate is among the highest the government imposes on any industry.
Gambling in Malaysia is permitted for only a handful of licensed operators, and in return they hand over a large share of their takings to the national treasury. Here is how each type of gambling is taxed.
What is the casino duty rate in Malaysia?
The casino duty is 35% of gross gaming income. This rate was raised from 25% in Budget 2019 and took effect from 1 January 2019 — the first increase in casino duty in over 20 years. The previous increase occurred in 1998, when the rate rose from 22% to 25%.
Malaysia’s only legal casino is Resorts World Genting, operated by the Genting group, so in practice this duty is paid by a single payer.
How are gaming machines and licences taxed?
Besides the main duty, operators bear separate duties and licence fees. All of these rates were raised at the same time in 2019.
| Item | Previous rate | Current rate |
|---|---|---|
| Casino duty | 25% of gross gaming income | 35% of gross gaming income |
| Gaming machine duty | 20% of gross collections | 30% of gross collections |
| Annual casino licence fee | RM120 million | RM150 million |
| Machine dealer’s licence fee | RM10,000 a year | RM50,000 a year |
How much tax is charged on a number forecast ticket?
Number Forecast Operators (NFOs) such as Sports Toto, Magnum and Da Ma Cai are taxed differently from casinos. The tax is charged on every draw, not on profit alone.
Take a simple example — a Sports Toto bet worth RM2:
- 8% gaming tax — 16 sen is deducted from gross sales.
- 8% pool betting duty — equivalent to 14.72 sen.
- Prizes — about 55% (RM1.10) is allocated as prize money to winners.
- SST — about 4.39 sen borne by the industry.
In addition, the NFO industry contributes 10% of pre-tax profit to the National Sports Council, and is still subject to the 24% corporate tax (the standard rate for resident companies) like any other company.
That means that before an operator counts its operating costs and profit, a large part of every bet has already flowed to the government and the national sports fund.
Why do these rates matter?
The high tax rate makes the gambling sector one of the steady contributors of non-oil revenue to the government, but it also squeezes operators’ margins. The higher duty and licence-fee burden since 2019 has put pressure on the costs and profits of casino operators and NFOs, who have to offset it through cost management and their respective product structures.
What’s next
The rates in this article are those in force since the 2019 amendment and have not been raised again in subsequent budgets, but gambling duties are frequently discussed as candidates for revenue increases in every budget round. For the latest official rates, refer to the Ministry of Finance’s annual Budget announcements and the government Gazette that sets the pool betting and sweepstake duties. If you want to understand the other taxes that gambling operators also bear, see our notes on the sales and service tax (SST) and corporate income tax.
What is the casino duty rate in Malaysia?
35% of gross gaming income, raised from 25% with effect from 1 January 2019.
What is the gaming machine duty?
30% of gross collections, raised from 20% in the same year.
How much tax is charged on a single number forecast ticket?
On a RM2 Sports Toto bet, 8% (16 sen) is deducted as gaming tax and a further 8% (14.72 sen) as pool betting duty; about 55% (RM1.10) is allocated as prize money.
The following are deliberately unstated or described only qualitatively until confirmed by a subject-matter expert:
- Yuran lesen kasino tahunan RM150 juta (daripada RM120 juta) dan yuran lesen pengedar mesin RM50,000 (daripada RM10,000) — sahkan terhadap warta / Akta Kewangan Bajet 2019.
- Sahkan tiada kenaikan kadar duti kasino, mesin permainan, atau pertaruhan pool dalam mana-mana bajet selepas 2019.
- Sumbangan 10% keuntungan sebelum cukai kepada Majlis Sukan Negara — sahkan asas statutori semasa.
- Pecahan tiket Sports Toto RM2 (16 sen, 14.72 sen, RM1.10, 4.39 sen SST) ialah satu contoh; nilai sebenar boleh berbeza mengikut permainan dan cabutan.
Sources
- How much taxes do gaming companies, NFOs and breweries pay? — The Edge Malaysia
- It pays to dabble in bets and booze as these sectors contribute RM20 billion in revenue — The Edge Malaysia
- Where does a RM2 bet on Sports Toto go? — KLSE Screener
- Malaysia — Corporate — Taxes on corporate income — PwC (Worldwide Tax Summaries)
Change history
| Version | Date | Change | By |
|---|---|---|---|
| 01.00 | 7 Aug 2026 | Approved and published. | — |