The government of Malaysia is losing an estimated RYM3 billion (US$767.6 million) in annual tax revenue to illegal 4D betting operators in the country, local media has reported.

According to The Sun Daily, the “boom” of illegal 4D operators in Malaysia is not only taking a huge chunk of profits from licensed gaming companies, but it also denies the government billions in tax revenue.

A gaming executive told the news outlet that the legal market, which makes an estimated RYM9 billion in profits, pays about RYM2 billion in taxes. The unlicensed sector, on the other hand, allegedly makes “about 1.5 times larger.”

“The government is losing about RYM3 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,” the executive said, according to the report.