This is an “upgrade” from earlier simulated forms of online betting with local syndicates now subscribing to live feeds directly from established online casino operators via high-speed broadband.
The live feed is then distributed to gambling den operators, reported The Star today.
“There are about 20 local operators controlling illegal gambling activities in the Klang Valley,” said a source.
The source said live feeds from Western countries were more popular than feeds from Cambodia, the Philippines and Vietnam, which were a bit dodgy as the games could be rigged.
A syndicate usually charges gambling den operators a 15% commission on their takings and pays the online gambling network a subscription fee of between 5% and 8% of its earnings from the operators.
“A syndicate can earn about RM30 million to RM50 million monthly net income from this service,” the source said.
An operator can earn from RM50,000 to RM2 million net per month depending on the location and the number of customers coming to the den.
Most of these gambling outfits in the Klang Valley operate illegally in shoplots with logos placed in front of the outlets to indicate the owners.
The premises are locked and patrons have to use a doorbell. However, they are scrutinised via closed-circuit cameras outside the outlets before they can gain entry to the establishments.
While regulars can enter, new customers must be accompanied or referred by trusted patrons.
Inside these gambling dens, there are rows of computers displaying live casino feeds.
Before playing, a gambler has to deposit cash at the counter, and the amount would then be credited to whichever computer he selects.
The credit in the computer is then used to place bets. Winnings are credited into the computer’s account and after finishing, the gambler proceeds to the counter to cash out if there is any money left.
A source said following the recent arrests of policemen in Melaka allegedly over protection money from illegal gambling centres, police in Penang and Klang Valley had cracked down on illegal gambling outfits.
After the crackdown, many of the gambling dens decided to temporarily stop operations. Only in the past two weeks, have some of these establishments resumed operations as they could not afford to pay the high overheads without opening their outfits.