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PETALING JAYA: Illegal gambling syndicates in 4D have taken a large chunk of legitimate business from Number Forecast Operators (NFOs) and caused the government to lose some RM3bil in tax revenue annually.
A source from the gaming industry said that the activities of these illegal 4D operations have become larger and more sophisticated over the last decade, consuming market share by the day.
“These illegal 4D syndicates not only offer larger cash prizes compared to legitimate NFOs, but also grant credit and allow online shopping via WhatsApp on giveaway days,” said the source.
In Malaysia, there are six licensed NFOs. Three of them, Magnum, Sports Toto and Damacai, are operators based on the peninsula, while the other three, Special Cashsweep, Sabah88 and Sandakan4D, have extensive operations in Sabah and Sarawak.
The source said the NFO’s revenue was over RM9bil with sales taxes amounting to approximately RM2bil per year.
However, the source said that the illegal 4D operation was known to be 1.5 to twice as large as the legitimate NFO business and as such the government could be losing up to RM3bil annually.
Because it is a lucrative business, where the payout for a winning number is 70/30, which means that for every RM1 4D sale, 70 sen would go towards paying the winning numbers while traders earn 30 sen, these Illegal operators are often connected to the underworld or triads.
“They earn a lot more than NFOs because they don’t pay taxes,” the source said.
The source said that unions also pay good commissions of 20-30% to illegal 4D brokers.
“For full-time brokers, they can earn between RM3,000 and RM10,000 a month, depending on their location and the credit given to punters,” said the source.
The source said that even part-time workers, who ran small-scale operations within their neighborhood or office, could earn between RM500 and RM1,500 a month in commission.
The source said that these gamblers were also being cared for by the unions if they were caught for the illegal activities of 4D.
“The union will have a third party to get them out of the police and even pay their fines if they are charged in court.
“They would also be compensated if they are apprehended by the authorities and jailed,” the source said.
The source said that because the illegal 4D business has multiple layers of intermediaries and brokers, it would be difficult for law enforcement authorities to track down or identify the true masterminds. union masterminds, as the law is not severe enough to discourage them from engaging in illegal activities.
Under Section 4A (a) of the Common Gaming House Act of 1953, a broker can be fined between RM20,000 and RM200,000 and jailed up to a maximum of five years if caught and convicted, while buyers can face a maximum of six months in jail or a fine of up to RM3,000 or both, if convicted.
But over the years, the source said, many of those arrested received only light sentences, slapped with only a few thousand ringgit fine and escaped without having to serve a jail sentence.
“With the unions willing to protect these criminals and pay the fine, considering the lucrative money they make from illegal activities, the business continues to push itself,” said the source. “The only way to stop them is to impose a higher penalty and a harsher jail sentence for both sellers and buyers,” added the source.
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