Kedah gambling restrictions dispute to go to Malaysia’s Federal Court
The appellate court has ruled that state authorities could not refuse licences solely on the basis of policy objections to gambling.
Malaysia.- The government of the state of Kedah is preparing to continue its legal defence of its restrictions on gambling licences after losing its case at the Court of Appeal. The menteri besar Datuk Seri Muhammad Sanusi Md Nor has said the administration had expected the outcome of the appeal and has begun procedures to seek a final determination from the Federal Court, with an application for leave to appeal scheduled to be heard on August 12.
The case began in November 2021 when the Kedah government announced that it would stop issuing new licences and renewing existing permits for number forecast and lottery outlets in the state. The policy was challenged by gambling and lottery operators, who argued that the state had acted beyond its legal authority. In 2024, the High Court ruled that the blanket prohibition was unlawful.
The Kedah administration appealed, but the Court of Appeal upheld the High Court’s decision in December 2025. In its reasoning released on June 2, the court stated that state authorities could not refuse licences solely on the basis of policy objections to gambling.
The majority judgment held that licensing powers must be exercised within the framework of the Federal Constitution and the Local Government Act. The court said decisions concerning business licences should be based on matters such as premises management, public safety, sanitation and nuisance concerns, rather than opposition to gambling itself.
The judges observed that some of the operators affected had been conducting business from the same locations for decades.
