KUALA LUMPUR – Unemployment and loss of government revenue will be problems following the impending gambling ban in Kedah.
Human Resource Minister Datuk Seri M. Saravanan also warned of black market activities possibly replacing the gambling industry in Kedah.
“The nation experienced a similar situation when samsu shops were banned and illegal sales of the product began to crop up,” he said, adding that the Kedah government's decision must be monitored closely.
“It is my personal opinion that the closure of gambling premises will cause many workers to become unemployed.
“It is possible that when we revoke lottery licences, it will lead to people losing their jobs, thus causing illegal forms of the business to take place,” he said.
Saravanan was responding to queries from R.S.N. Rayer (Jelutong-PH) during his Budget 2022 winding-up speech.
Rayer also questioned if Kedah’s call would set a dangerous precedent for other states.
“What will happen to Genting Highlands if the federal government decides to impose the same ban?” he asked, noting that the government also benefits from the income generated by lottery companies.
“What about the rights of non-Muslims to legally purchase lottery number tickets? Will liquor stores also have to worry about being hit with a similar ban in the future?”
In reply, Saravanan indicated that the decision was out of his hands, saying: “The call was made by the Kedah state government and it is up to them.”
He also acknowledged that if there is a rise in illegal operations as a result of the ban, the government will lose out to the shadow economy in terms of taxes.
“Even now when licences are made available, there are still businesses that operate illegally,” he said in explaining that the closure of such businesses will not eliminate gambling entirely – only its legal forms.
On November 14, Kedah Menteri Besar Datuk Seri Muhammad Sanusi Md Nor announced that the state will neither issue new licences, nor renew existing ones for gambling businesses, including all 4D lottery outlets, in the state, effective immediately. – The Vibes, November 16, 2021
