Apex court: Gambling debt not legally binding, unenforceable

Apex court: Gambling debt not legally binding, unenforceable



An illustrative photo shows playing cards and casino chips laid across a gaming table. — AFP pic

Thursday, 27 Feb 2025 4:02 PM MYT


KUALA LUMPUR, Feb 27 — The Federal Court has ruled that gambling debts are not legally enforceable in Malaysia as betting is a vice.

According to Free Malaysia Today, a panel at the apex court unanimously noted that the government has consistently opposed gambling in Parliament, citing its lack of public benefit.

Justice Datuk Nordin Hassan, who chaired the panel, said this was patent from laws such as Sections 24 and 31(1) of the Contracts Act 1950 and Section 26 of the Civil Law Act 1956.

“Public perception of gambling is also without doubt that such activities are something bad and should be discouraged. Thus, gambling activities and their transactions are against public policy,” he was quoted as sayng

The unanimous decision came in an appeal by businessman Ting Ching Lee, who sought to strike out a RM6 million gambling debt counterclaim by tour agent Ting Siu Hua.

The three-judge panel included Chief Judge of Sabah and Sarawak Tan Sri Abdul Rahman Sebli and Justice Datuk Abdul Karim Abdul Jalil.

The court also ordered Siu Hua to pay RM200,000 in costs to Ching Lee.

In its 44-page judgment, the court acknowledged that licensed gambling premises operate in Malaysia but maintained that gambling remains against public policy.

Nordin clarified that gambling debts, including those arising from casino credit facilities, are considered “debts of honour” and not legally binding.

The case stemmed from a dispute where Siu Hua, a casino promoter, attempted to recover a debt incurred by Ching Lee at Cambodia’s Naga Casino.

The Federal Court’s ruling overturned a Court of Appeal decision, restoring the High Court’s original finding that the gambling debt was unenforceable.