Malaysian Finance Ministry Confirms No New Gambling Licences Since 1990s
TL;DR — Malaysia’s finance ministry denied issuing any new gambling licences since the 1990s and rejected Kedah’s accusations. The Federal Court upheld limits on state powers, ordering RM50,000 in costs. A new law targeting illegal gambling is under review.
SCCG Take — The rulings reinforce federal authority over licensing, offering predictability for existing operators while sharpening focus on illegal activity enforcement.
The Malaysian finance ministry has rejected claims by Kedah Chief Minister Sanusi Nor that the federal government failed to control gambling or issued fresh permits. The ministry reiterated that no new gambling licences have been granted and that the number of licensed gambling outlets has remained unchanged since the 1990s.
“The number of existing licences and permits remain the same as those approved since the 1990s,” the ministry stated. It emphasised the Madani government’s commitment to a stern and responsible approach limiting licensed gambling and enforcing strict regulations.
Court Ruling Limits State Powers Over Licences
The statement follows the Federal Court decision on 12 August declining Kedah’s application to overturn a ruling barring the state from refusing licence renewals for pool betting and lottery businesses. The three-judge panel ruled that Kedah failed to meet the threshold under Section 96(a) of the Courts of Judicature Act 1964. The state was ordered to pay RM50,000 ($12,397) in legal costs.
The Court of Appeal previously determined that states cannot impose broad bans on gambling based purely on principled opposition. Licensing must instead address premises-related factors such as safety, sanitation, nuisance and location suitability.
The ministry noted that during administrations from 2020 to 2022, when the Malaysian Islamic Party participated in the federal government, no ban on licensed gambling occurred. The number of special lottery draws rose from eight to 22 annually during that period. The current Madani administration restored the number to eight.
Proposed Law Aims to Address Illegal Gambling
Deputy Prime Minister Datuk Seri Fadillah Yusof announced earlier this year that a new law to curb illegal gambling is under review. It may be introduced as a special act or incorporated under the Common Gaming Houses Act.
As reported by iGaming Business, these developments underscore ongoing federal and state tensions in Malaysian gambling regulation.
Reporting: iGaming Business (iGB)
Generated by SCCG’s automated editorial system from published source reporting. SCCG Management holds editorial responsibility.
Federal control is locked in, existing operators have predictability, and illegal enforcement is sharpening — status quo holds firm.
We've worked regulated and emerging markets across Asia for three decades, and this is textbook: frozen licensing creates a moat for incumbents but zero expansion runway. Malaysia's federal-state friction and new illegal-gambling crackdown signal tighter compliance ahead. Operators in adjacent markets need to watch how enforcement evolves — it sets the regional tone.
- No new gambling licences issued since the 1990s; outlet count unchanged
- Federal Court blocks Kedah from denying renewals, orders RM50,000 costs
- New law targeting illegal gambling under government review
SCCG angle: SCCG has deep relationships across Asia-Pacific regulators and land-based operators. If you're navigating compliance in frozen or tightening markets like Malaysia, we connect you to the right legal, lobbying, and operational partners who understand federal-state dynamics and can help you protect your position or explore adjacencies.
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