The Malaysian Finance Ministry has dismissed recent assertions made by Kedah Chief Minister Sanusi Nor, who claimed that the federal government has not effectively controlled gambling or issued new permits within the state. Local media reported on Thursday that the ministry reaffirmed that no new gambling licenses have been issued since the 1990s, and the number of licensed gambling outlets remains unchanged.
The ministry emphasized the Madani government’s commitment to a "stern and responsible approach" in restricting licensed gambling activities while enforcing rigorous regulations.
This response comes on the heels of a legal decision on August 12, when the Federal Court rejected Kedah’s attempt to overturn an earlier ruling that prevented the state government from denying renewals for pool betting and lottery licenses. The three-judge panel determined that Kedah did not meet the conditions necessary under Section 96(a) of the Courts of Judicature Act 1964, which outlines the criteria for contesting a civil decision. Consequently, the state was ordered to pay RM50,000 ($12,397) in legal expenses.
Previously, the Court of Appeal had ruled that states cannot impose blanket bans on gambling operations solely based on ethical objections to gambling. The appellate court clarified that state licensing powers should be centered on factors related to the premises, such as safety, sanitation, nuisance, and suitability of location, rather than comprehensively opposing gambling activities.
The finance ministry also pointed out that between 2020 and 2022, while the Malaysian Islamic Party was part of the federal government, no attempts were made to revoke licensed gambling or revoke existing permits. During this time, the government even increased the number of special lottery draws from eight to 22 annually. However, under the current Madani administration, the number of special draws has reverted to eight.
Earlier this year, Deputy Prime Minister Datuk Seri Fadillah Yusof announced plans for a new law aimed at curbing illegal gambling. This proposed legislation will either be introduced as a special act or included within existing cybercrime laws, such as the 1953 Common Gaming Houses Act, which defines gaming as involving any game of chance or a mixture of chance and skill for monetary value.
