Appeals court rejects Kedah's bid to not renew gaming licences

 

The Court of Appeal has dismissed Kedah state government’s appeal seeking to reinstate its decision to withhold licence renewals for pool betting and lottery operators.

Free Malaysia Today reported that in a majority ruling, judges Faizah Jamaludin and Lim Hock Leng found the appeal to be without merit, while Chief Judge of Sabah and Sarawak Azizah Nawawi dissented. No costs were awarded.

Faizah and Lim determined that the state government’s refusal to renew licences for several pool betting agents, their companies, and officers was unconstitutional.

Lim highlighted Kedah Menteri Besar Sanusi Nor’s affidavit, which stated that the move aimed to “ban” gambling in the state.

However, the judge stated that pool betting and lotteries fall under the jurisdiction of the Finance Ministry in Putrajaya, as the licences are issued and regulated by the federal government.

“This non-renewal had the effect of usurping the finance minister’s power and imposing a blanket ban (on pool betting and lotteries),” he said.

Faizah added that Kedah’s action encroached on federal powers and undermined the finance minister’s authority under the Pool Betting Act.

“This situation has created a real conflict on state and federal powers under the Ninth Schedule of the Federal Constitution (which defines federal and state powers),” she said.

In dissent, Azizah argued that the appeal should be allowed, emphasising that the state’s decision was based on public policy considerations. 

She cited Sanusi’s statement that the government aimed to prioritise public welfare by not renewing licences for pool betting premises, regardless of religious considerations. 

“It was beyond the court’s purview,” Azizah said, noting that a Federal Court ruling earlier this year recognised that gambling, even when regulated, can be restricted under public policy.

Previously, the Alor Setar High Court had ruled on June 20 that Kedah’s decision to halt licence renewals from Jan 1, 2023, was “illegal and irrational”. 

This followed six judicial review applications filed by pool betting agents and companies, arguing that gambling and lottery matters are under federal jurisdiction and that the state had no authority to impose a ban. - Mkini