Federal Court dismisses Kedah govt’s bid for leave to appeal in pool betting outlet licences case

Federal Court dismisses Kedah govt’s bid for leave to appeal in pool betting outlet licences case



The three-judge panel chaired by Justice Datuk Rhodzariah Bujang, Datuk Collin Lawrence Sequerah and Datuk Azmi Ariffin ordered the state government to pay RM50,000 costs. — Bernama pic


Summary

• The Federal Court upheld a decision preventing the Kedah government from denying licence renewals to pool betting and lottery operators, citing it as unconstitutional.
• The court emphasized that the regulation of these activities falls under the Finance Ministry's jurisdiction, with the state exceeding its authority and contravening the Federal Constitution.
• Consequently, the Kedah government was ordered to pay RM50,000 in costs.
• The majority ruling stressed that the state's refusal was based on policy objections rather than legitimate local governmental concerns.

By Malay Mail
First Published: Wednesday, 12 Aug 2026 11:59 AM MYT
Last Modified: Wednesday, 12 Aug 2026 3:30 PM MYT


PUTRAJAYA, Aug 12 (Bernama) -- The Federal Court today dismissed the Kedah state government’s application seeking leave to appeal against a ruling that had quashed its decision to cease the issuance and renewal of business licences for pool betting operators in the state.


The three-judge panel chaired by Justice Datuk Rhodzariah Bujang, Datuk Collin Lawrence Sequerah and Datuk Azmi Ariffin ordered the state government to pay RM50,000 costs.


Justice Rhodzariah, who delivered the court’s unanimous decision, held that the state government has failed to meet the threshold requirement under Section 96 (a) of the Courts of Judicature Act 1964 for leave to be granted.


The Kedah Government had sought leave to appeal the Court of Appeal 2-1 majority decision, which upheld the High Court’s ruling in favour of pool betting agents, companies and their principal officers in challenging the state government’s directive.


The Court of Appeal, in its majority decision on Dec 12, 2025, ruled that the Kedah government’s decision to cease the issuance and renewal of business licences for pool betting operators was irrational and unconstitutional.

In the majority decision, Court of Appeal judge Datuk Faizah Jamaluddin said the decision by the state government to stop issuing and renewing pool betting business licences had exceeded the constitutional limits of the state power.


She said the decision was an impermissible state-wide prohibition of a subject matter reserved to the Federation.

However, in the dissenting judgment, Chief Judge of Sabah and Sarawak Datuk Azizah Nawawi held that the Kedah State Executive Council’s decision not to renew pool betting premises licences constituted a policy matter that should not be interfered with by the court.

She said the decision involved the state government’s discretion and consideration of the welfare of the people of Kedah above the personal interests of the operators.

Six judicial review applications were filed by pool betting agents, pool betting companies or principal officers of pool betting companies to challenge the state government’s decision.

On June 20, 2024, the High Court granted a declaration that the Kedah state government’s decision is ultra vires the Federal Constitution, a certiorari order to quash the decision and an order for damages to be assessed before the deputy registrar.

During Federal Court proceedings, counsel for the state government, Tan Sri Azhar Azizan Harun, sought leave to be granted and proposed six questions of law. He said the questions had not been determined by the top court and that it would be to public advantage if the court decide on those questions.

However, lawyer Brian Foong Mun Loong representing the pool betting operators, argued that the state government failed to fulfil the threshold requirement for leave to be granted.

In November 2021, Kedah Menteri Besar Datuk Seri Muhammad Sanusi Nor announced that the state would cease renewing local council licences for lottery outlets starting Jan 1, 2023, as part of efforts to curb social ills.

Speaking to reporters after the proceedings, Foong said the Federal Court’s decision to affirm the High Court’s ruling which quash the state government’s decision meant that his clients could now apply for business premises licences.

“As the policy has been quashed, technically, there is no reason for the local councils to refuse, he said.— Bernama