RM3b tax lost: Illegal 4D operators depriving govt of huge chunk of revenue

PETALING JAYA: The booming of illegal 4D betting operators in the country is taking a large chunk of profits away from legitimate gaming companies and depriving the government of a whopping RM3 billion in tax revenue annually.
An executive officer of a gaming company, told theSun the activities of illegal 4D syndicates appear to be getting bigger by the day.
"The revenue of the legal market is about RM9 billion, with payment of RM2 billion in taxes.
"But the illegal sector is generally known to be about 1.5 times larger and so the government is losing about RM3 billion in duties and taxes each year, in the same way revenue is lost through the activities of syndicates that smuggle cigarettes and liquor into the country and evade taxes."
He said legitimate gaming operators are subject to strict regulations when it comes to taxation and level of prize monies.
According to him, the duties involved are gaming tax, pool betting duties, goods and services tax, corporate tax, and state sales tax for Sabah and Sarawak.
"It may all seem like harmless fun to gamble illegally, but players are completely unprotected as illegal operators are not registered or regulated by the authorities," he said.
Even the 'new kid on the block" – illegal online gambling – is already having a significant effect on the revenue of the gaming industry.
A source familiar with illegal 4D activities told theSun that a slack in enforcement has given leeway to 4D "runners" to operate blatantly in public places.
He said these runners, who are from all walks of life, earn a commission of between 20% and 30% of the wager placed by punters.
This enables them to earn between RM3,000 and RM10,000 a month.
"It's good income, either as a side or full-time business, and what more, they are also 'well-protected'," said the source, explaining that runners who get caught are bailed out by their bosses.
At the other end are the "big fish", who stay out of sight while running the business and funding the whole operation.
These high-fliers often have state titles to their names and stay "clean" by mingling with high society.
The source said until these big fish are nailed, the illegal 4D business will thrive.
He said it is not easy to bring these big guns to book as there is often a lack of evidence in pining criminal charges against them. They also have enough "fall guys" to take the blame.
He said it's a system that has worked for decades and that the syndicate hierarchy has it all planned out.
"It will stay strong as long as there is no seriousness to strike them hard by going after the heads. What we have seen over the years are only the 'tails' being hauled up," added the source.
But the police have their side of the story. They retort that their plea for the relevant laws to be amended has been to no avail so far.
Federal police CID assistant director and head of the anti-vice, gambling and secret society (D7) unit, SAC Datuk Roslee Chik, said curbing illegal gambling of all forms may only be successful when the lawmakers amend the outdated gaming laws.
"We have had several meetings with the Attorney-General's Chambers to discuss amending the Common Gaming Houses Act, Lottery Act, and Pool Betting Act 1967. Only when these amendments are made will we have a 100% fighting chance against the syndicates," he said when contacted by theSun.
"When the police are serious about fighting the illegal gambling syndicates, the lawmakers should be serious in amending laws to clamp down on them too," he added.
Roslee said Parliament must amend the Common Gaming Houses Act as is regarded as no longer relevant in combating illegal gambling, particularly online gambling.
It is learnt that runners caught during a raid are usually investigated under Section 7(2) of the Common Gaming Houses Act 1953, under which they can be fined up to RM5,000 or be jailed for up to six months if found guilty.
"Fining these crooks is not enough if you ask me because at the end of the day, the runner will be out very soon as the illegal gambling syndicates can afford to pay the fines for these crooks," he said.
"We will invoke the Prevention of Crime Act (POCA) on these crooks. About 46 illegal-gambling operators were nabbed under POCA last year and we expect more arrests soon," he added.