Malaysia’s Finance Ministry has rejected claims that the federal government has expanded gambling activities or approved new gambling licenses, responding to comments made by Kedah leader Muhammad Sanusi Md Nor.
In a statement, the ministry said recent remarks by Sanusi created a misleading impression that the Madani government had relaxed its oversight of gambling or allowed additional gambling outlets to operate in Kedah. Officials cited by Free Malaysia Today maintained that no new licenses or permits have been issued and that the number of authorized gambling premises has remained unchanged for decades.
According to the ministry, the current number of licenses and permits is based on approvals granted during the 1990s. It also said strict conditions continue to apply to license holders as part of broader efforts to regulate the sector.
The response comes amid an ongoing debate over gambling regulation in Malaysia and follows a recent court decision involving the Kedah state government’s efforts to restrict certain gambling-related businesses.
Federal Government Points to Existing Restrictions
The Finance Ministry said the Madani administration has continued to limit licensed gambling activities while increasing enforcement efforts against illegal and online gambling operations.
Officials stressed that no new gambling licenses have been introduced since the government took office and that the number of licensed gambling outlets has not increased.
“The number of existing licenses and permits remain the same as those approved since the 1990s,” the ministry stated.
The ministry also highlighted policy decisions concerning special lottery draws. It noted that a Pakatan Harapan-led federal administration had previously reduced the annual number of special lottery draws from 22 to eight.
According to the ministry, subsequent federal governments led by Perikatan Nasional and Barisan Nasional between 2020 and 2022 restored the number of special draws to 22 per year. After the Madani government assumed office in late 2022, one of its early decisions was to reduce the number back to eight annually, with the change taking effect in January 2023.
The ministry further argued that governments in power between 2020 and 2022, a period during which the Malaysian Islamic Party (PAS) was part of the federal administration, never proposed a nationwide ban on licensed gambling activities or sought to revoke existing permits.
Officials said the current administration would continue pursuing what it described as a firm regulatory approach through licensing controls and enforcement measures targeting unlicensed gambling activity.
Court Ruling Shapes Dispute Over Licensing Powers
The ministry’s statement followed a legal setback for the Kedah government in its attempt to challenge earlier court rulings relating to gambling license renewals.
On 12 August, Malaysia’s Federal Court rejected an application by the Kedah administration seeking to overturn decisions that prevented it from refusing license renewals for pool betting and lottery operators.
The case stemmed from a previous Court of Appeal ruling that limited the grounds on which state authorities could reject such applications. The appellate court found that state governments could not impose broad prohibitions on pool betting and lottery businesses solely because they opposed gambling activities.
Instead, the court ruled that licensing decisions should be based on factors connected to business premises. These include issues such as building conditions, safety requirements, sanitation standards, public nuisance concerns and whether a location is suitable for the proposed activity.
According to reports, a three-judge Federal Court panel determined that Kedah had failed to satisfy the legal requirements necessary to obtain leave to challenge the earlier judgment under Section 96(a) of the Courts of Judicature Act 1964. As a result, the state was ordered to pay RM50,000 (US$12,397) in legal costs.
Following the court proceedings, Sanusi stated that the future of gambling activities in Kedah now rested with Prime Minister Anwar Ibrahim.
Government Reviews Measures Against Illegal Gambling
Alongside defending its existing licensing framework, the federal government is also examining additional measures aimed at combating unlawful gambling activity.
Earlier this year, Deputy Prime Minister Fadillah Yusof disclosed that authorities were reviewing a new legal framework intended to address illegal gambling operations.
Under the proposal, the government is considering either introducing a dedicated law or incorporating new provisions into existing cybercrime legislation. One option under review involves amendments linked to the Common Gaming Houses Act 1953, which defines gaming as “the playing of any game of chance or of mixed chance and skill for money or money’s worth”.
The Finance Ministry said these efforts form part of the government’s broader strategy to maintain strict oversight of gambling activities while strengthening enforcement against unlicensed operators.