Tough to regulate online gambling, says economist
PETALING JAYA: New laws to regulate online gambling would boost the economy and protect young people from becoming addicted, but may hit a snag in implementation, says an economist.
Yeah Kim Leng of 红杏视频 University said regulating and licensing online gambling would ensure that the country does not lose its tax revenue.
However, he highlighted several challenges to control gambling sites operating abroad, outside Malaysia鈥檚 jurisdiction.
鈥淭he internet is vast and borderless so it would be hard to regulate them according to our laws,鈥 he told FMT.
He suggested that the government agencies such as the Malaysian Communications and Multimedia Commission block these sites, in order to compel them to register if they want to reach the Malaysian population.
His response came after deputy communications and multimedia minister Zahidi Zainul Abidin said there is a proposal to draft laws to licence online gambling as a way to tax such activities in the country.
Zahidi also said the proposed law would allow the authorities to monitor online gambling activities while also collecting taxes.
Yeah also said another problem could lie with the registration of these online gambling businesses. 鈥淚t would be hard to get them to come forth willingly,鈥 he said.
He said regulating gambling must go hand in hand with educational awareness campaigns particularly with schoolgoing children so that they do not fall prey to online gambling.
Another economist, Center for Market Education CEO Carmelo Ferlito said it was important to clarify if the aim of the proposed law is a 鈥渕oral punishment鈥 or to increase tax revenues.
鈥淢ost gamblers would continue gambling through higher taxes and regulations and the result is that many poor households that gamble are made poorer.
鈥淏ad behaviour like smoking and gambling are addictive. Regulation won鈥檛 discourage them. The additional burden won鈥檛 be felt by the rich but the poor will get poorer.
鈥淩egulation will only increase illegal activities and the gambling black market,鈥 he said.
However, a rewards-based policy could achieve the same welfare goals without the 鈥渘asty side effects鈥 caused by punitive measures such as the increase in illegal gambling activities.
鈥淎n example could be a programme and financial support for those who want to quit their addiction especially for the poor segment of the population,鈥 he said.
Mosco Ang, adviser to the Gamblers Rehab Centre Malaysia, said the government should invest in educational campaigns in schools, especially targeting those in Form 6 and college. 鈥淵oung people need to be aware that gambling could destroy their family, career and future,鈥 he said.
Tax specialist Veerinderjeet Singh said legalisation of online gambling was just a measure to manage the industry so that the businesses will register themselves. 鈥淭hat will also lead to reporting of annual accounts and therefore tracking for income tax purposes,鈥 he said.
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