Licensing Push To Curb Gambling Meets Meta Resistance

Malaysia’s mandatory social-media licensing framework—introduced in January 2025 for platforms with at least eight million local users—was pitched as a direct response to surging online scams and illegal gambling promotions. Meta, which operates Facebook, Instagram and WhatsApp, has publicly disagreed with the approach while saying it will keep talking with the government. Officials say enforcement is needed to stem gambling-linked harms; Meta argues prescriptive rules risk falling behind fast-evolving criminal tactics.

Under the framework, platforms must secure a licence or face fines of up to RM 500,000 (about US$118,500) and potential jail terms of up to five years for company officers. Authorities point to illegal online gambling, online fraud and the spread of child sexual abuse material as core targets.

Malaysia permits gambling only through licensed lotteries, horse racing and the Resorts World Genting casino; all forms of online wagering are banned. Regulators say unlicensed operators use social ads, influencer tie-ins and private messaging to reach consumers, including younger users.

The Malaysian Communications and Multimedia Commission (MCMC) reported the removal of more than 558,000 pieces of unlawful content between January 2022 and August 2025—most of it tied to illegal gambling and online fraud—acting under the Communications and Multimedia Act 1998 with police and financial regulators. A government Safe Internet Campaign runs in parallel to raise awareness about cyber threats, digital consent and age-appropriate online access.

Communications Minister Fahmi Fadzil has repeatedly criticised Meta for not yet applying for a licence, noting an earlier informal pledge to cooperate. Officials cite continuing exposure to scams and illegal gambling advertisements on Meta’s platforms. Last month, Fahmi said Malaysians lost more than 248 million ringgit (US$59 million) between 2023 and August 2025 through e-commerce scams across Facebook, Instagram and WhatsApp, and noted the government had sent over 168,000 takedown requests this year to Facebook alone, representing 59% of total requests across all platforms. Malaysia has not threatened bans, but it has expressed frustration at what it characterises as slow responses to complaints.

Only some competitors have obtained approvals so far: micro-video platform TikTok and messaging services WeChat and Telegram have secured licences since the rules took effect.

Meta says its safety efforts predate the licence regime and continue independently of it. The company cites strengthened youth-protection policies, expanded scam-detection systems and biannual transparency reports. “All of that is ongoing and regardless of the social media licensing regime,” Rafael Frankel, Meta’s director of public policy, said in an interview. “We don’t need any licence to continue that work.”

Frankel argues that rigid compliance templates can be outpaced by offenders: “Criminal networks are well-funded, sophisticated and motivated. If governments impose narrow compliance rules, cybercrime will continue to evolve around them,” he said. He also cautioned that identity checks are not a panacea: “There are all sorts of ways that criminals can pass ID checks if they are really well motivated, sophisticated and well financed. And they are.”

The company says it agrees regulation is necessary to protect children and people from online harm, but warns that increasingly prescriptive licensing could tie platforms to static obligations while criminal enterprises adapt. A recent meeting between Meta and Malaysian officials did not yield a concrete outcome; Meta says it is open to continued discussions.

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Debate over youth protections intersects with the gambling-enforcement agenda. Australia will enforce from December 10 one of the strictest social-media laws globally, banning accounts for users aged 16 and under; Malaysia is considering going further by barring teenagers from using smartphones.

Frankel warned that narrow bans risk displacement to less-supervised channels: “When we talk about online youth regulation, you’ve got to talk about the whole online environment. If you just focus on social media and you do social media bans… you’re going to drive them to less safe spaces. That’s the practical result.” Meta points to constructive talks with Indonesia and Singapore and hopes for similar engagement in Kuala Lumpur.

Source:

, scmp.com, October 29, 2025.