The Malaysian finance ministry has dismissed allegations from Kedah Chief Minister Sanusi Nor, who claimed the federal government was neglecting its duty to regulate gambling and had issued new permits in the state. Local media reported that the ministry confirmed no new gambling licenses had been granted and that the total number of licensed gambling outlets has remained unchanged since the 1990s.
In a recent statement, the ministry underscored the current government's commitment to a "stern and responsible approach" regarding the regulation of licensed gambling activities.
This clarification comes in the wake of a legal decision on August 12, when the Federal Court rejected Kedah’s bid to reverse a ruling that prohibited the state government from denying renewal of licenses for pool betting and lottery businesses. According to Bernama, the three-judge panel determined that Kedah failed to satisfy the criteria set in Section 96(a) of the Courts of Judicature Act 1964, which governs requests to overturn civil rulings. As a result, the state was instructed to pay RM50,000 (approximately $12,397) in legal costs.
Previously, the Court of Appeal had ruled against the notion that states could impose comprehensive bans on gambling based solely on moral opposition to the practice. The appellate court clarified that licensing decisions should be based on factors pertaining to the premises, such as safety and suitability, rather than broad policy objections to gambling.
The finance ministry noted that from 2020 to 2022, during the period when the Malaysian Islamic Party participated in the federal government, there were no initiatives to revoke gambling licenses or ban licensed operations. Instead, the number of special lottery draws increased from eight to 22 each year. However, the present Madani administration has reduced this number back to eight.
Earlier this year, Deputy Prime Minister Datuk Seri Fadillah Yusof announced that a new law is currently under consideration to address illegal gambling activities. This proposed legislation may be introduced as a special act or included under existing cybercrime laws, such as the 1953 Common Gaming Houses Act, which defines gaming as engaging in any game of chance or a combination of chance and skill in exchange for money or monetary value.
