TABLE OF CONTENTS
Betting businesses are considered one of the most profitable businesses globally and Malaysia is no different. Like any
other business, starting a betting business in Malaysia involves a lot of research and processes to follow. If you have
been probing how to start betting business in Malaysia, then you have landed at the right place!
This all-in-one guide on how to open a betting company (cara membuka syarikat pertaruhan) in Malaysia includes all the vital information you require to
launch your business. So, without much waiting, let’s get straight into it.
Present Betting Market Landscape in Malaysia
Malaysia goes against betting legalization. However, with the penetration of mobile betting and other forms of gambling,
the government is reconsidering. A latest report
suggests that there would be a significant rise in the number of users
and the overall growth of the betting market in Malaysia.
Let’s have a look at the statistics to include in your research for how to start betting business in Malaysia.
Sports Market in Malaysia
Let’s have a look at the statistics to include in your research for how to start betting business in Malaysia.
Sports Market in Malaysia
- Projected to reach US$63.26m in 2024
- CAGR from 2024 to 2029 is expected to be rising at 2.30%
- Projected market volume is expected to be US$70.88m
- The US generates most revenue (US$49.76bn in 2024)
Reasons to Start a Sports Betting Business in Malaysia
Expanding Market Potential
The sports betting market (pasaran pertaruhan sukan) is on the rise in Malaysia due to a plethora of sports that are widely watched and followed, such as football and badminton. This is a growing industry in which an entrepreneur can seize new opportunities for both casual and serious gamblers.
Tech-Savvy Population
A large chunk of the population in Malaysia is wired to use smartphones and digital platforms continuously. This tech-savvy demographic, as such, is highly receptive to online and mobile betting services, ensuring a ready audience for digital sportsbook operators in the process.
Diverse Customer Base
Multiculturally rich, Malaysia has a long array of sports interests supported in the country, from local favorites like sepak takraw to various international leagues, meaning operators can appeal to a wide and varied customer base.
Global Payment Systems
Malaysia allows the facility of paying for bets in various ways, from e-wallets and credit cards to even cryptocurrencies. This flexibility of options ensures convenience in transactions for the gamblers, thereby increasing business all over the world.
Strategic Location
How to start betting business (Bagaimana untuk memulakan perniagaan pertaruhan) in Malaysia? Malaysia is strategically located in both Southeast Asia and ASEAN, providing a direct passage to expand into regional neighbors like Indonesia and Thailand. The country is a hub for regional sports betting ventures.
Flexible Licensing Opportunities
Legal requirement for betting business (Keperluan undang-undang untuk perniagaan pertaruhan) in Malaysia is a genre to mostly focus on. With strict regulations on sports betting and their other forms of betting, businesses that ensure compliance can legally set up their operation. This is where the operators can safely provide service to an untapped market segment.
Access to Advanced Technologies
The Malaysian betting industry benefits greatly from partnerships it has with several top-tier software providers. Consequently, the operators can create secure but feature-packed platforms to satisfy both local players' and international punters' tastes and preferences.
Pivotal Factors to Consider Before Starting a Betting Business in Malaysia
Legal & Regulatory Compliance
It is vital to understand the Malaysian legal requirement for betting business (perniagaan pertaruhan), due to the high regulation of betting within the country. Ensure that licenses and operations fully correspond to the requirements of the jurisdiction in order to prevent penalties or possible litigation. Consult local lawyers for specific advice.
Market Research & Target Audience
How to start betting business in Malaysia? Be updated on the Malaysian sports betting market, such as favorite bets taken. Establish a target audience: sports-oriented, casino players, or other players, and implement services that fit their needs.
Technology & Platform Features
When selecting sportsbook software (perisian sportsbook), prioritize advanced options with key features such as real-time live streaming, in-play betting for customer engagement, mobile compatibility for on-the-go accessibility, and scalability for future expansion.
Payment Methods & Currencies
Offer diverse payment options, including local bank transfers, e-wallets, and cryptocurrency. Support local and international currencies as well as payment methods and gateways for smooth transactions.
Localization & Language Support
Incorporate Bahasa Malaysia and English into the platform to help the locals who may speak any of those languages, among many others. Ensure that the content is customized in personal ways that cultural nuances come out and is readily accessible for better engagement and enjoyment by all.
Marketing & Branding Strategies
To stay ahead of the competition, it will be important that unique and special branding strategies are woven for your customers. Leverage different platforms of social media, affiliate programs, and offers to cement your presence adaptively within a competitive market advantage.
Risk & Fraud Management
It is vital to note that the inclusion of robust security measures is important. This includes encryption protocols such as Two factor Authentication (2FA) and Multifactor Authentication (MFA). Strict Know Your Customer (KYC) procedures are also something to consider. By implementing these measures, we can enhance general security levels and protect sensitive information. Utilizing advanced AI-driven tools for fraud monitoring on a continuous basis further fortifies the security framework and ensures a safe and secure betting environment for one and all users. This is one of the most crucial steps in research and execution of how to start betting business in Malaysia.
Customer Support & Engagement
By improving customer satisfaction, our customer support is available 24/7 on live chat, email, and call services. We offer exciting loyalty programs and bonuses, apart from trying to make customer experiences frictionless for long-term relationships.
Partnerships & Network Building
Fostering robust relationships with regional agents, affiliates, and sports organizations is key to broadening market penetration. By working together, trust and exposure can be enhanced, ultimately boosting credibility and raising visibility levels.
Financial Planning & Investment
Set your project up for success by outlining in detail a thorough budget that covers software costs, licenses, marketing campaigns, and operation-related expenses. By allocating resources today, you will be able to realize increased profitability and repeat returns on investments.
How to Start Betting Business in Malaysia: 5 Steps to Follow | Cara Memulakan Perniagaan Pertaruhan di Malaysia: 5 Langkah untuk Diikuti
Understand Local Laws & Regulations
Compliance with Malaysia's legal requirement for betting business seeks for thorough research encompassing both online and physical operations. This involves collaborating closely with legal experts to acquire the essential licenses and adhere to jurisdictional requirements for seamless operational processes. By ensuring strict compliance with the law, you can establish a solid foundation for a successful and legally sound betting operation in Malaysia.
Define the Business Model
When making a decision, consider various options such as white-label, turnkey, or bespoke solutions. Consider the target audience and preferred sports betting types. Decide based on the extent of the business's operational scope. Ensure the chosen solution aligns perfectly with the organization's needs and goals.
Choose Reliable Betting Software Providers
How to start betting business (Bagaimana untuk memulakan perniagaan pertaruhan) in Malaysia with assistance from top software providers? It is important to carefully select a reputable company that guarantees secure, scalable, and feature-rich solutions when choosing a software provider for betting platforms. Ensure the provider offers seamless integration of essential tools, CRM, unified back office, robust risk management features, and engaging live betting functionalities should be integrated. Odds feed from reliable providers is necessary for live betting functionalities. This integration enhances the overall user experience. Maximizing your platform's potential for success is achieved through these enhancements.
Build a Strong Payment System
Integrate multiple payment gateways that support local and international currencies. Incorporate e-wallets and cryptocurrencies in addition to these gateways. Provide customers with a wide array of options for seamless transactions. Ensure a convenient and secure payment process across various platforms and channels. Cater to a diverse range of consumer preferences and needs.
Develop Marketing & Retention Strategies
To spearhead successful player acquisition efforts, strategically devise marketing campaigns that showcase enticing bonuses, promotions, and loyalty rewards. Employ advanced CRM tools and analytics to closely track players' actions, enabling targeted strategies that heighten player retention and engagement.
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What to Look for When Choosing the Right Sports Betting Software Providers in Malaysia
Local Regulatory Compliance
License and guidelines must be followed, as stipulated by the authorities, to ensure that providers are working within the legal frameworks of Malaysia's gambling law and international regulations. This will ensure their legality and ease of operation. Compliances will help your business from any legal issues and to gain the trust of users. Confirm their experience in managing necessities in regions such as multilingual support or local payment integration.
Customization Options
Allow flexibility in the solutions provided by choosing providers that can cater to the needs of your business. This serves to provide an opportunity for/interface design, betting markets, and user management features that can be changed toward your goals. Such flexibility will ensure a more perfect fit with your branding and operational goals, hence helping the platform meet the preferences of your audience.
Comprehensive Features
How to start betting business in Malaysia and what features to choose in sportsbook software? Well, when you have decided the type of sportsbook solution, it is time for important features to choose. Ensure the software provides live odds management, in-play betting, player engagement tools, and analytics dashboards. A feature-rich platform helps businesses establish an engaging and professional experience for varied user preferences and enhances retention.
Scalability
Choose a software solution that will be able to scale out with the ease of your business growth. Vendors offering modular solutions enable businesses to expand betting markets, add new features, or accommodate more users without sacrificing performance. These are the ones to consider in terms of long-term growth and adaptability on the market.
Support and Maintenance
Robust customer support is necessary to overcome technical glitches quickly. Vendors providing 24x7 support, end-to-end solutions, prompt updates, and proper account management will ensure seamless operations. Strong support allows lessening downtime and increasing user satisfaction by resolving issues as soon as possible.
Advanced Security Protocols
Security is crucial in safeguarding user data and financial transactions. Go for those whose services incorporate encryption, multi-factor authentication, and real-time fraud detection. It gives confidence to the users and protects data as required by the law; hence, it protects your reputation.
Integration Capabilities
Look for software that can be integrated with 3rd party services such as odds providers, payment gateways, and marketing tools. Smooth integration will provide a multi-functional and versatile platform that will reduce further resource dispersion and increase operational efficiency.
Cost Transparency
This would most easily be done by selecting those providers with clear pricing, not containing any hidden or extraneous fees. Transparent pricing allows for easier financial planning since you can make sure your investments match up to what is projected in return. It is also indicative of a more trustworthy and professional service provider.
User-Friendly Interface
Intuitive design allows the user interface to be easy to use for both operators and bettors. Smoothening the user experience increases satisfaction, cuts errors, and amplifies overall platform engagement-essential ingredients in competitive markets like Malaysia.
Sports Betting Software Solutions & When to Choose Them
Sports betting software solutions come in a couple of variants. Without a proper knowledge of what they are and when to choose them can give you a hard time. This is also true if you have solid research in place for how to start betting business in Malaysia. Thus, to make it simpler for you to understand and make the right decision, here is a broken-down list.
Let’s check out!
- Software Solutions
- Top Benefits
- Ideal For
- Turnkey Sportsbook
- Quick market entry with pre-configured and ready-to-use features
- Cost-effective solution requiring minimal configuration
- Comprehensive features for seamless operations and management
- Easily expandable to meet growing business needs
- Regular updates and ongoing technical support
- Startups aiming for a quick, pre-built solution to enter the sports betting market effectively.
- White Label Sportsbook
- Ready-made platform with customizable branding options
- Cost-effective solution compared to bespoke development
- Licensing assistance provided by the software provider
- Quick deployment with reduced development time
- Access to marketing and operational support services
- Companies seeking a streamlined platform without dealing with the intricacies of software development.
- Bespoke or Custom Sportsbook
- Fully tailored features designed to suit unique business requirements
- Distinctive user experience perfectly aligned with branding
- Adaptable scalability to support business expansion
- Enhanced control over compliance and security protocols
- Stand out with competitive advantage via personalized functionalities
- Experienced operators requiring a distinct, fully customized sportsbook solution to differentiate themselves.
SEARCHING FOR A WINNING SPORTS BETTING PLATFORM IN MALAYSIA?
Top 5 Best Sports Betting Software Providers in Malaysia
One of the crucial factors in how to start betting business in Malaysia is to choose the top-tier sports betting software providers. With a huge influx of various sportsbook software providers, it is quite a task to find the best one that perfectly aligns to your business needs. Thus, to make things much easier, here is our top pick to check out.
- Betting Software Providers
- Estd. Year
- GammaStack
- Bettoblock
- Crustlab
- Semidot Infotech
- Arka Software
- 2012
- 2016
- 2017
- 2011
- 2010
GammaStack
GammaStack stands as a leader in the iGaming industry with over 13 years of experience. Supported by a team of 500+ skilled professionals, GammaStack delivers a range of solutions, including -
- Turnkey Sportsbook Solution
- White-label Sportsbook Solution
- Bespoke Sports Betting Solution
- Sweepstakes Casino Software
- Lottery
- Slot Game Development
- Online Casinos
- Live Casinos
- Poker
- And more!
With 80+ modern-themed sportsbooks launched, it offers over 70,000 betting events monthly. GammaStack’s expertise encompasses advanced features like seamless third-party integration, a mobile-first approach, intuitive UI/UX, cross-platform compatibility, and regulatory compliance, ensuring a robust and innovative gaming experience.
Bettoblock
Bettoblock provides tailored services, including secure blockchain development, engaging gaming solutions, and user-friendly sports betting platforms or software. The team excels in creating scalable products that enhance user experience, ensuring quality and innovation for revenue-driven businesses seeking to transform ideas into successful solutions.
Crustlab
CrustLab stands as a leader in iGaming, offering specialized web and mobile solutions for online casinos, sportsbooks, lotteries, and esports. Renowned for its product-focused approach and expertise in software development, CrustLab drives business growth and ensures high-quality outcomes for clients across the industry.
Semidot Infotech
SemiDot Infotech is a premium software development company specializing in delivering exceptional web and mobile app solutions including sports betting. By leveraging and enhancing the latest technologies, the company ensures every product is of unparalleled quality. With a team of carefully selected developers, SemiDot excels in challenging and improving existing systems through innovative approaches, meeting diverse business needs with tailored hiring and engagement models, serving startups to enterprises.
Arka Software
Arka Software, a leading provider of sports betting app development services, is renowned for innovative, reliable solutions. Their offerings include app development, website creation, and advanced sportsbook software, ensuring seamless user experiences. Known for commitment to excellence, Arka delivers tailored solutions that empower businesses to excel in the competitive sports betting industry.
An Insight into the Future of Sports Betting Business in Malaysia
Are you interested in knowing how to start a betting company in Malaysia? Well, here’s a sneak peak about its future. While debates about its legalization and regulation persist, sports betting, without the right license, is illegal in Malaysia. Technology keeps renewing sports betting with inventions such as esports and in-game bets, luring enthusiasts into the fray. Indeed, though promising for potential economic benefits and integrations into tourism for the future, measures should be put in place to help address gambling addiction as part of responsible growth.
How to Open a Betting Company in Malaysia With GammaStack
GammaStack has established itself as a pioneer in the iGaming industry, particularly excelling in sports betting
solutions for over 13 years. Offering a robust suite of turnkey, white-label, and bespoke sportsbook platforms,
GammaStack also delivers a range of additional services. Backed by a team of over 500 skilled developers and
professionals, each solution reflects exceptional quality and innovation. The sportsbook platforms stand out with
advanced, tech-driven features designed to elevate user experiences.
Now that you have already completed the research and information gathering on how to start betting business in Malaysia. It is time to answer a few of your questions before you start.
- Robust back office, PAM, CMS & CRM
- Diverse games portfolio
- Certified 3rd party integrations
- 24*7 customer support
- Advanced security measures
- Customized sportsbook solutions
- Pre-live and live betting
- On-going maintenance
- Post-launch support
- Real-time data integration
- Marketing assistance
Now that you have already completed the research and information gathering on how to start betting business in Malaysia. It is time to answer a few of your questions before you start.
FAQs on How to Start a Betting Company in Malaysia
Betting is largely restricted in Malaysia due to strict gambling laws. However, online betting operates in a gray area for some international operators. It’s essential to research local regulations and consult legal experts before starting a betting company in the region.
Research and execution of how to start betting business in Malaysia remains incomplete without knowing what licenses to go for. Securing the appropriate license is vital. Malaysia’s licensing process is restrictive, and offshore licenses from jurisdictions like Malta or Curacao may be required. These licenses provide credibility, ensure compliance with international laws, and allow operations targeting Malaysian players legally.
To attract customers, you need to:
- Offer lucrative bonuses
- Offer competitive odds and bonuses
- Create a user-friendly platform
- Provide fast payouts
- Use targeted marketing, especially on social media
- Customer trust and satisfaction are crucial for retention
Secure, fast, and flexible payment options enhance customer experience and trust. Include methods like -
- Local bank transfers
- E-wallets such as GrabPay or Touch 'n Go
- Credit and debit cards
- Cryptocurrency for tech-savvy users
A couple of challenges can hit bookies in Malaysia when they are planning on how to start betting business in Malaysia. Thorough planning, legal advice, and reliable software can help mitigate these risks. The probable challenges include -
- Navigating strict gambling laws
- Securing licenses
- Building a reliable platform
- Attracting a competitive user base
- Managing risks like fraud and chargebacks
References:
- https://www.statista.com/outlook/amo/sports/malaysia
- https://www.statista.com/outlook/amo/esports/esports-betting/worldwide
-
https://www.statista.com
/outlook/amo/sports/
united-arab-emirates -
https://www.statista.com/outlook
/amo/esports/united-arab-emirates
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