Malaysia Freezes RM32M in Online Gambling Crackdown

Authorities intensify operations against illegal online gambling and money laundering using mule accounts.

In a major enforcement move, authorities in Penang, Malaysia, have frozen more than 150 bank accounts suspected of being used for illegal online gambling and scam-related transactions. The seized funds total RM32 million, or roughly ₱387 million. This crackdown is part of “Ops Dadu”, a broader national initiative targeting financial crimes and unregulated gambling networks.

Chief Minister Chow Kon Yeow disclosed that Penang has been dealing with a high number of gambling-related incidents over the last few years. In 2023, there were 2,337 reported cases, leading to 2,681 arrests and 1,390 charges. So far in 2024, authorities have handled 1,510 new cases, arrested 1,810 individuals, and charged 1,084. By March 2025, the state had already logged 485 additional cases, resulting in 542 arrests and 255 charges filed in court.

The effort extends beyond financial seizures. The Malaysian Communications and Multimedia Commission (MCMC) has also blocked access to thousands of websites used for illegal gambling. On top of that, over 212,000 mobile lines believed to be tied to spam and scam activities have been shut down. Authorities have gone further by disconnecting utility services—such as water and electricity—at physical locations used for illegal betting operations.

To raise awareness, the government is running education campaigns across schools and public platforms, warning citizens—especially young people—about the dangers of online gambling and digital fraud. Chief Minister Chow also urged tech companies and social media platforms to invest in AI tools to identify and remove gambling-related content more quickly. He added that requiring platforms to obtain mandatory licenses could improve accountability and help law enforcement act more effectively.

With hundreds of millions of pesos linked to illegal betting, Penang’s multilayered strategy shows the state is taking online gambling seriously. The message is clear: unlicensed gambling operations—whether digital or physical—will be met with swift action.

Read related article: Malaysia amending comms law to address online gambling, scams