Malaysia Denies New Gambling Permits Since 1990s, Court Backs Federal Control

Kyle Kevin

iGaming Writer

Fact Checked

Malaysia’s finance ministry says no new gambling permits have been issued since the 1990s. A Federal Court ruling just told Kedah it cannot ban the ones that already exist.

Malaysia’s finance ministry has flatly denied issuing any new gambling licences since the 1990s. The statement, reported by local media on Thursday, directly rebuts Kedah Chief Minister Sanusi Nor. Sanusi had accused the federal government of failing to control gambling and handing out fresh permits within his state. “The number of existing licences and permits remain the same as those approved since the 1990s,” the ministry stated. It added that the Madani government maintains a “stern and responsible approach” toward limiting licensed gambling and enforcing strict regulations. The rebuttal is not merely administrative. It is political. Sanusi leads the Malaysian Islamic Party, which governs Kedah and has pursued a zero-gambling policy since 2021. The Federal Court crushed that policy on August 12. A three-judge panel dismissed Kedah’s application to overturn a ruling that barred the state from refusing to renew licences for pool betting and lottery businesses. The court found Kedah failed to meet the threshold under Section 96(a) of the Courts of Judicature Act 1964. The state must pay RM50,000 ($12,400) in costs. Sanusi has signalled he will explore other legal avenues. For now, the federal government holds the cards.

Malaysia Gambling Licences: The Finance Ministry Rebuttal

The finance ministry’s statement was unequivocal. No new gambling licences have been granted. No new Malaysia permits have been issued. The existing stock dates to the 1990s. Sanusi’s accusation was specific. He claimed the federal government was issuing fresh permits and failing to control gambling in Kedah. The ministry called that false. It framed its position around the Madani administration’s “stern and responsible approach.” That language is deliberate. Prime Minister Anwar Ibrahim’s coalition includes the Democratic Action Party and other secular allies who oppose blanket gambling bans on civil liberties grounds. The ministry is defending both the policy Malaysia and the record. The timing matters. Sanusi made his claims amid a heated political climate. Kedah’s zero-gambling policy has been a signature initiative of the Malaysian Islamic Party. The party has banned alcohol sales, restricted entertainment venues and targeted gambling as part of a broader Islamic governance agenda. The federal pushback is part of a larger tension between PAS-led states and the central government over religious versus civil authority. The ministry also took a swipe at PAS’s federal record. It noted that during the 2020–2022 period, when PAS was part of the Malaysia federal government, “no efforts were made to ban licensed gambling or revoke established permits.” Instead, the government increased special lottery draws from eight to 22 per year. The Madani administration restored the number to eight. That contrast is politically potent. PAS cannot claim federal consistency on gambling when its own administration expanded lottery draws. The ministry’s statement turns the accusation back on the accuser.

Federal Court Rules Against Kedah’s Gambling Ban

The Federal Court delivered its ruling on August 12. A three-judge panel dismissed Kedah’s bid to overturn an earlier decision that prevented the state from refusing to renew licences for pool betting and lottery businesses. The court found that Kedah did not meet the required threshold under Section 96(a) of the Courts of Judicature Act 1964. That section governs when a civil decision can be appealed to the Federal Court. Kedah fell short. The state was ordered to pay RM50,000 in legal costs. The ruling is final. There is no higher court in Malaysia. Sanusi has hinted at “another way” to uphold the zero-gambling policy. He told reporters no decision had been made on whether to issue new licences for gambling premises. He also said the question of whether gambling is allowed in Kedah “now rests with the finance minister.” That is a retreat. The chief minister built his political brand on defying federal authority. The court has now told him he cannot. The zero-gambling policy began in 2021. Kedah stopped renewing licences for pool betting and lottery outlets. Existing operators challenged the ban. The Court of Appeal ruled in their favour in 2024. Kedah appealed to the Federal Court. The Federal Court said no. The legal battle is over. The political one continues. AGBrief tracks regulatory developments across Asia-Pacific gaming markets.

The Court of Appeal’s Earlier Ruling on State Powers

The Court of Appeal set the legal framework in 2024. It ruled that states could not impose broad bans on gambling operations purely based on principled opposition to gambling. State licensing powers must focus on “premises-related factors.” Those include safety, sanitation, nuisance and location suitability. Overarching policy objections do not qualify. The appellate court’s reasoning was clear. Malaysia’s federal system divides powers between national and state governments. Gambling licensing falls under federal jurisdiction through the Ministry of Finance. States can regulate premises. They cannot nullify federal licences. Kedah’s zero-gambling policy crossed that line. The state argued that Islamic principles justified the ban. The court said no. Religious objections, however sincerely held, do not override the constitutional division of powers. The Federal Court’s August 2026 ruling upheld that logic. It did not revisit the substance. It simply confirmed that Kedah had failed to meet the procedural threshold for appeal. The effect is the same. Kedah cannot refuse renewals. Existing operators can continue. New ones cannot be blocked on policy grounds.

New Anti-Gambling Legislation Under Review

The federal government is not sitting idle. Deputy Prime Minister Datuk Seri Fadillah Yusof announced earlier this year that a new law is under review to curb illegal gambling. The proposed legislation could be introduced as a standalone act or incorporated into existing cybercrime law. The 1953 Common Gaming Houses Act is the most likely vehicle. That act defines gaming as “the playing of any game of chance or of mixed chance and skill for money or money’s worth.” It has not been significantly updated for the digital era. The new law would address that gap. It would grant police and relevant agencies expanded authority to act against illegal online operators. Fadillah said the bill could be tabled at the next parliamentary sitting, subject to readiness. Home Minister Saifuddin Nasution Ismail told parliament in January that police had proposed reviewing existing laws to deal with evolving online gambling. The proposals include amending the Common Gaming Houses Act and incorporating online gambling provisions into a Cyber Crime Bill. The focus is enforcement, not prohibition. The federal government is tightening rules against illegal operators while defending the legality of licensed ones. That is the core tension with PAS. The Islamic Party wants all gambling banned. The federal government wants regulated gambling with strict enforcement against illegal competition. The finance ministry’s statement on Thursday reinforced that position. It defended existing licences. It rejected new permits. It promised stern regulation. It did not promise abolition.

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This article has been thoroughly researched and reviewed by the CasinoBait editorial team to ensure accuracy and relevance for Asian casino players.