Malaysia Rejects Claims of New Gambling Licenses as Kedah Fight Reaches Federal Court

Malaysia’s federal government has pushed back against claims that it has expanded legal gambling, insisting that the country has not issued new gambling licenses since the current administration took office.

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The dispute has become particularly sharp in Kedah, where state authorities have tried to restrict gambling businesses despite existing federal licensing arrangements.

The Finance Ministry said the number of licensed gambling premises has not increased and that the permits currently in use date back to approvals granted in the 1990s. License holders remain subject to regulatory conditions, while enforcement against illegal and online gambling is being strengthened.

The clarification followed remarks by Kedah leader Muhammad Sanusi Md Nor, who has been critical of gambling activity in the state.

The disagreement is not simply political. It also exposes a legal divide over how much power a Malaysian state government has to block gambling businesses that hold federal approval.

Kedah Loses Licensing Challenge

On August 12, the Federal Court rejected Kedah’s attempt to obtain permission to challenge earlier judgments concerning the renewal of licenses for pool betting and lottery operators.

The dispute had already reached the Court of Appeal, which ruled that a state government could not reject license renewals simply because it opposed gambling.

Instead, licensing decisions had to be tied to matters concerning the premises and the proposed operation. Building conditions, safety, sanitation, public nuisance and the suitability of a location could all be considered.

The Federal Court found that Kedah had not met the legal threshold required to proceed with a further appeal under Section 96(a) of the Courts of Judicature Act 1964. The state was also ordered to pay RM50,000, about US$12,397, in legal costs.

After the ruling, Sanusi indicated that the next decision over gambling in Kedah would lie with Prime Minister Anwar Ibrahim.

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That leaves the state government with limited room to pursue a blanket restriction through licensing decisions alone.

Federal Policy Has Changed, But Not Through New Licenses

The Finance Ministry also pointed to the number of special lottery draws as evidence that the federal government has not moved toward expanding gambling.

A previous Pakatan Harapan administration cut the annual number of special draws from 22 to eight. Between 2020 and 2022, governments led by Perikatan Nasional and Barisan Nasional restored the number to 22.

The Madani government, which came to power in late 2022, reversed that increase. From January 2023, the number was again reduced to eight annually.

The ministry also highlighted the record of governments between 2020 and 2022, when PAS was part of the federal administration. It said those governments did not propose a nationwide prohibition on licensed gambling or attempt to cancel existing permits.

The distinction matters. Malaysia’s current policy is not a new expansion of licensed gambling, the ministry maintains, but continued regulation of a sector whose existing approvals largely predate the present government.

At the same time, Kuala Lumpur is looking at stronger tools against gambling that operates outside that framework.

Deputy Prime Minister Fadillah Yusof has previously disclosed work on a possible new legal regime for illegal gambling. The government is considering a dedicated law or amendments to existing cybercrime legislation, including possible changes connected to the Common Gaming Houses Act 1953.

For now, the federal position is clear: licensed gambling remains tightly controlled, while illegal operations are being targeted separately. The Kedah court battle has reinforced another point — opposition to gambling by a state government does not, by itself, give it the power to erase federal licensing arrangements.

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Source: news.worldcasinodirectory.com