Malaysia Denies New Gambling Permits Issued Since 1990s

The rebuttal follows a Federal Court ruling on August 12, 2026, that rejected the Kedah government's attempt to overturn a prior decision barring the state from refusing to renew licences for pool betting and lottery operators. 

The three-judge panel found that Kedah had not met the threshold required under Section 96(a) of the Courts of Judicature Act 1964 to overturn a civil decision, and ordered the state to pay RM50,000 ($12,397) in legal costs.

That decision was built on an earlier Court of Appeal ruling that state governments could not impose blanket bans on pool betting and lottery businesses purely on the grounds of opposition to gambling. 

The appellate court held that state licensing powers should focus on premises-related factors, including safety, sanitation, nuisance and location suitability, rather than overarching policy objections to gambling.

The finance ministry noted that during the 2020 to 2022 administration, when the Malaysian Islamic Party (PAS) was part of the federal coalition, no steps were taken to ban licensed gambling or revoke existing permits. 

Instead, the number of special lottery draws was increased from eight to 22 a year during that period. Since the current Madani government took office, the number of special draws has been restored to eight.

Sanusi had previously said that the decision on whether gambling activities are allowed in Kedah now rests with Prime Minister Anwar Ibrahim, following the court rulings on state licensing powers.

The dispute comes as Malaysia continues work on new legislation targeting illegal gambling. 

Deputy Prime Minister Fadillah Yusof said earlier this year that a draft bill was under review and could be introduced as a standalone act or folded into existing cybercrime provisions, such as the 1953 Common Gaming Houses Act. 

That act currently defines gaming as "the playing of any game of chance or of mixed chance and skill for money or money's worth," and forms part of the framework licensing authorities cite when they reject applications for new outlets or draws.

The finance ministry's position is that this framework, rather than any individual state government, has set the ceiling on licensed gambling activity in Malaysia since the 1990s, regardless of which state coalition is in power.

Need a new bookmaker with a welcome offer to start your day? Then check out our list of the best betting sites.

That distinction is central to the Kedah dispute: the courts have found that a state can regulate the physical premises a licensed operator uses, such as safety, sanitation and location, but cannot use its planning or business-licensing powers to block a federally sanctioned pool betting or lottery operator outright.

The finance ministry's statement reiterates that federal oversight of licensed gambling in Malaysia has remained unchanged for more than three decades, even as individual states continue to test the limits of their own licensing authority in court. 

For readers following regulatory developments across Asia and other markets, gambling.com tracks changes to licensed online casino markets and betting sites worldwide, alongside the latest gambling news.