Malaysian government denies new gambling permits have been issued since the 1990s

The Malaysian finance ministry has rejected recent claims by Kedah Chief Minister Sanusi Nor, who accused the federal government of failing to control gambling or issuing fresh permits within the state. 

As reported by local media on Thursday, the ministry reiterated that no new gambling licences have been granted and that the number of licensed gambling outlets has remained unchanged since the 1990s.

“The number of existing licences and permits remain the same as those approved since the 1990s,” the ministry stated, emphasising the Madani government’s commitment to a “stern and responsible approach” towards limiting licensed gambling activities and enforcing strict regulations.

Legal battle highlights limits on state powers

The rebuttal follows a recent legal development where the Federal Court on 12 August declined Kedah’s application to overturn a prior ruling that barred the state government from refusing to renew licences for pool betting and lottery businesses.

According to Bernama, the three-judge panel concluded that Kedah did not meet the required threshold stipulated under Section 96(a) of the Courts of Judicature Act 1964 which sets the rules for getting permission to overrule a civil decision. This conclusion resulted in the state being ordered to pay RM50,000 ($12,397) in legal costs. 

Earlier, the Court of Appeal had ruled that states could not impose broad bans on gambling operations purely based on principled opposition to gambling.

In its judgment, the appellate court clarified that state licensing powers should focus on premises-related factors, including safety, sanitation, nuisance and location suitability, rather than on overarching policy objections to gambling activities.

A new law under review

The finance ministry further highlighted that during administrations between 2020 and 2022, a period when Malaysian Islamic Party was part of the federal government, no efforts were made to ban licensed gambling or revoke established permits. Rather, the government increased the number of special lottery draws from eight to 22 annually.

With the advent of the current Madani administration, the number of special lottery draws was restored to eight.

Earlier this year, the Malaysian Deputy Prime Minister Datuk Seri Fadillah Yusof announced that a new law was under review that would curb illegal gambling. 

The proposed law will be introduced as a special act or incorporated under existing cybercrime law, such as the 1953 Common Gaming Houses Act. The act defines gaming as “the playing of any game of chance or of mixed chance and skill for money or money’s worth”.