The Malaysian finance ministry has dismissed allegations from Kedah Chief Minister Sanusi Nor, who accused the federal government of neglecting to control gambling and issuing new permits in the state.
Local media reported that the ministry has confirmed that no new gambling licenses have been awarded and that the total count of licensed gambling establishments has remained unchanged since the 1990s. The ministry reiterated, "The number of existing licenses and permits remain the same as those approved since the 1990s," underscoring the Madani government’s pledge to maintain a responsible and strict regulatory framework concerning licensed gambling activities.
This statement follows a recent legal decision where, on August 12, the Federal Court rejected an appeal by Kedah to overturn a previous ruling prohibiting the state government from refusing the renewal of licenses for pool betting and lottery businesses. According to Bernama, the three-judge panel determined that Kedah failed to satisfy the prerequisites outlined in Section 96(a) of the Courts of Judicature Act 1964, which governs the criteria for overriding a civil ruling. Consequently, Kedah was ordered to pay RM50,000 (approximately $12,397) in legal costs.
Earlier, the Court of Appeal had determined that states cannot enact sweeping bans on gambling operations based solely on moral objections to gambling. In its ruling, the appellate court specified that state licensing authority should consider factors related to properties, such as safety, sanitation, nuisance, and location appropriateness, rather than overarching moral stances against gambling activities.
Additionally, the finance ministry pointed out that during the administrations from 2020 to 2022, when the Malaysian Islamic Party participated in the federal government, there were no initiatives to revoke licensed gambling or eliminate existing permits. Instead, the government expanded the number of special lottery draws from eight to 22 annually. Under the current Madani administration, the number of special lottery draws has returned to eight.
Earlier this year, Malaysian Deputy Prime Minister Datuk Seri Fadillah Yusof disclosed that new legislation is being contemplated to combat illegal gambling. This proposed law may either be enacted as a special act or integrated into current cybercrime legislation, such as the 1953 Common Gaming Houses Act, which classifies gaming as the engagement in any game of chance or a mix of chance and skill for monetary gain or equivalent value.
