THE Court of Appeal, in a 2-1 ruling, has upheld the Alor Star High Court’s decision, declaring the Kedah government’s directive to halt the issuance and renewal of business licences for gaming operators unconstitutional and in conflict with the Federal Constitution.
The appeal, filed by the Kedah state government and Menteri Besar Datuk Seri Muhammad Sanusi Md Nor, was dismissed by Court of Appeal judges Datuk Dr Lim Hock Leng and Datuk Faizah Jamaludin, who found the appeal lacked merit.
Chief Judge of Sabah and Sarawak Datuk Azizah Nawawi delivered the sole dissenting opinion, supporting the state’s position.
In their majority judgment, Lim and Faizah held that the state government’s action was ultra vires and inconsistent with federal law. Lim emphasised that pool betting and lotteries fall exclusively under federal jurisdiction, administered by the Finance Ministry in Putrajaya, which retains sole authority over licensing for operators and agents.
Faizah added that the state’s refusal to renew premises licences amounted to an unlawful intrusion on federal powers, undermining the statutory authority of the finance minister under the Pool Betting Act 1967.
"This situation has created a real conflict over state and federal powers under the Ninth Schedule of the Federal Constitution. Thus, the High Court judge’s decision was not in error," Faizah said.
Conversely, the dissenting judge, Azizah, argued that the appeal should have been allowed, maintaining that the state’s decision represented a legitimate exercise of public policy discretion.
The litigation stems from a judicial review application filed on 20 June 2024 by pool betting agents, companies, and their principal officers, challenging the state’s directive. The Alor Star High Court, under then-Judge Mahazan Mat Taib, had ruled in favour of the applicants, allowing them to continue operating under the existing federal licences.
The Court of Appeal’s ruling reinforces the supremacy of federal authority in matters of gambling regulation, affirming that states cannot unilaterally curtail licences issued under federal law. - December 12, 2025
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