Influencers and the Gambling Grey Zone: Malaysia’s Digital Tightrope

Malaysia’s social media landscape is being reshaped by a contentious battleground: influencers and the promotion of online gambling. As regulators intensify pressure on platforms and creators, marketing ethics and legal boundaries are converging in a new grey zone.

Malaysian authorities are demanding stronger action against gambling ads proliferating on Meta and Instagram.

Communications Minister Datuk Fahmi Fadzil has been outspoken: “If a gambling ad is paid for using a credit card and Facebook knows this content is illegal in Malaysia, they should block the account,” he told reporters. “But Meta has refused to do so.”

He also emphasised the government does not plan to ban Meta outright, saying: “Many people benefit from these platforms socially and economically…. but we cannot allow criminals to misuse them”.

Yet, despite regulatory intolerance, influencer-driven gambling promotions remain widespread.

In 2024, police arrested 27 influencers across multiple states for allegedly pushing illegal gambling schemes, many operating under euphemistic or lifestyle guise.

These creators reportedly received payments ranging from RM 1,500 to RM 8,000 per campaign, depending on follower count.

Many posts were masked under themes such as fashion or travel, with “slide-in” brand logos or DM prompts serving as discreet conduits to gambling sites.

For Malaysian regulators, enforcement is particularly challenging given the offshore nature of many operators, domain rotations, and the use of AI to rework content. The technology can reanimate older celebrity clips, blend backgrounds, or subtly alter logos, complicating moderation.

While Malaysia pushes on enforcement fronts, other jurisdictions are also tightening the screws…

In Australia, the ACMA has warned that influencers promoting unlicensed gambling face penalties of up to AU$2.5 million. “Social media influencers must understand that the promotion of illegal gambling services in Australia is illegal, and substantial penalties apply,” the regulator stated.

The UK similarly insists that influencer endorsements must clearly disclose any commercial link, particularly for gambling, under the control of the Gambling Commission.  Such moves reflect a growing consensus: digital influence cannot serve as a loophole around legal and moral responsibility.

In Malaysia, the sheer scale of takedowns underscores the challenge. Of over 224,000 gambling-related posts removed nationwide since 2022, more than 90 per cent were from Facebook.

This suggests that mainstream social platforms remain pivotal hubs for gambling marketing. Even so, many infractions escape detection because promotional messages are nested in non-ad content or run via third-party affiliates.

For brands and agencies working with influencers, the stakes are rising. As more creators become linked, willingly or otherwise, to borderline or illegal promotions, reputational contagion looms.

Brands must now conduct tighter due diligence, demand full disclosure, and insist on clean audit trails. For influencer marketing to remain credible, the ecosystem must purge its dark corners.

Malaysia’s showdown with Meta may set precedent. If the platform resists credit card blocks or deeper content policing, authorities may explore licensing obligations or financial restrictions on ad flows.

Meanwhile, the real battleground will be how effectively enforcement, payments systems, platform policies and public norms align to make the influencer “grey zone” untenable.

In the end, Malaysia may show whether the era of digital influence demands not only creativity but above all, accountability.