The Malaysian finance ministry has dismissed accusations from Kedah Chief Minister Sanusi Nor regarding the federal government’s handling of gambling permissions in the state. According to reports from local media, the ministry reiterated its position on Thursday, confirming that no new gambling licenses have been issued since the 1990s, thereby maintaining that the number of licensed gambling outlets remains unchanged.
In a statement, the ministry affirmed that "the number of existing licences and permits remain the same as those approved since the 1990s," highlighting the Madani government's commitment to a "stern and responsible approach" that seeks to restrict licensed gambling activities while enforcing strict regulations.
This announcement comes in the wake of a legal development on August 12, when the Federal Court rejected Kedah’s bid to overturn a previous decision that prevented the state from denying the renewal of licenses for pool betting and lottery operations. A three-judge panel ruled that Kedah failed to meet the necessary criteria under Section 96(a) of the Courts of Judicature Act 1964, which governs the procedure for seeking permission to contest a civil ruling. The court ordered Kedah to pay RM50,000 (approximately $12,397) in legal costs.
Previously, the Court of Appeal established that states were unable to impose blanket bans on gambling based solely on ethical objections to such activities. The appellate court clarified that state licensing mandates should be based on practical considerations such as safety, sanitation, nuisance, and suitability of location, rather than on broader policy views against gambling.
Additionally, the finance ministry pointed out that between 2020 and 2022, when the Malaysian Islamic Party was part of the federal government, there was no movement to eliminate licensed gambling or revoke any permits. Instead, the government had increased the number of special lottery draws from eight annually to 22. However, under the current Madani government, the number of these draws has reverted to eight.
Earlier this year, Deputy Prime Minister Datuk Seri Fadillah Yusof indicated that a new law is under consideration aimed at combating illegal gambling. This proposed legislation may take the form of a special act or be integrated into the existing cybercrime laws, including the 1953 Common Gaming Houses Act, which defines gaming legally as "the playing of any game of chance or of mixed chance and skill for money or money’s worth."
