Kedah’s move not to renew gambling licences ‘intrudes on federal powers’: court

The majority decision was made by Judges Faizah Jamaludin and Lim Hock Leng, who ruled that the Kedah state government’s appeal lacked merit. - Scoop file pic, December 12, 2025


Kedah’s move not to renew gambling licences ‘intrudes on federal powers’: court


Judges Faizah and Lim held that the state government’s refusal to renew licences for several gambling agents, companies, and their officers was unconstitutional

KUALA LUMPUR – The Court of Appeal today dismissed the Kedah state government’s appeal to overturn its decision not to renew premises gambling licences.

The majority decision was made by Judges Faizah Jamaludin and Lim Hock Leng, who ruled that the Kedah state government’s appeal lacked merit, according to FMT.

However, Chief Judge of Sabah and Sarawak, Azizah Nawawi, dissented. She argued that the appeal should have been allowed as the decision was made by the state government on public grounds.

No order as to costs was given.

Judges Faizah and Lim held that the state government’s refusal to renew licences for several gambling agents, companies, and their officers was unconstitutional.

Lim referred to the affidavit by Kedah Menteri Besar, Datuk Seri Mohamad Sanusi Md Nor, in which he claimed the decision aimed to “prohibit” gambling in the state.

“However, matters relating to gambling and lotteries fall under the jurisdiction of the Finance Ministry in Putrajaya, as agent and operator licences are issued and regulated by the ministry,” he said.

The refusal to renew the licences, he added, effectively assumed the powers of the finance minister and imposed a blanket prohibition on gambling and lotteries.

Meanwhile, Faizah said the state government’s action in not renewing licences for gambling agents, companies, and officers encroached on federal powers and undermined the authority of the finance minister under the Common Gaming Houses Act.

She argued that this created a real conflict between state and federal powers under the Ninth Schedule of the Federal Constitution, which defines federal and state jurisdictions.

Lawyers Brian Foong and Hiqmar Danial Hidzir represented the gambling agents, companies, and officers, while state legal advisor Saifulrijal Azhari represented the Kedah government.

On November 14, 2022, Sanusi announced that the state government would no longer approve gambling licences and would restrict alcohol sales at all premises, particularly in rural areas.

In 2021, this decision was enforced, resulting in the closure of all gambling and lottery premises in Kedah.

However, on June 20, 2024, the Alor Setar High Court allowed a judicial review application to prevent the state government from banning licensed gambling activities.

The court also ordered the Kedah government, the Menteri Besar, the Alor Setar City Council, and the mayor to pay compensation to operators who suffered losses due to the decision. – December 12, 2025