Kedah govt loses bid to reinstate decision on non-renewal of gaming licences

Court of Appeal rules in a majority decision that the move to deny licence renewals for several pool betting agents, their companies and officers was unconstitutional.

In a majority decision, Justices Faizah Jamaludin and Lim Hock Leng ruled that the appeal lacked merit, while Chief Judge of Sabah and Sarawak Azizah Nawawi dissented. No costs were ordered.

Faizah and Lim said the state government’s move to deny licence renewals for several pool betting agents, their companies and officers was unconstitutional.

Lim noted Kedah menteri besar Sanusi Nor’s claim in his affidavit that the decision was to “ban” gambling in the state.

“However, matters on pool betting and lotteries are within the purview of the finance ministry in Putrajaya, as the agents and operators’ licences were issued and are under the ministry’s control,” he said.

“This non-renewal had the effect of usurping the finance minister’s power and imposing a blanket ban (on pool betting and lotteries).”

Faizah meanwhile said that Kedah’s non-renewal of premise licences for pool betting agents, companies and officers encroached on federal powers and undermined the finance minister’s authority under the Pool Betting Act.

“This situation has created a real conflict on state and federal powers under the Ninth Schedule of the Federal Constitution (which defines federal and state powers),” she said.

Azizah, the dissenting judge, argued that the appeal should be allowed as the state’s decision was a public policy measure.

She cited Sanusi’s statement that the government wanted to prioritise the welfare of the people by not renewing licences for pool betting premises, irrespective of religion.

“It was beyond the court’s purview,” Azizah said, adding that a Federal Court ruling earlier this year had acknowledged that gambling, even if regulated, could still be restricted under public policy considerations.

Lawyers Brian Foong and Hiqmar Danial Hidzir represented the pool betting agents, companies and officers, while state legal adviser Saifulrijal Azhari appeared for the Kedah government.

The Alor Setar High Court ruled on June 20 last year that the Kedah government’s decision to stop renewing licences for pool betting premises from Jan 1, 2023 was
“illegal and irrational”.

The decision came from six judicial review applications by pool betting agents, pool betting companies or principal officers of pool betting companies, challenging the state government’s decision.

They argued that pool betting and lotteries were matters within the purview of the federal government, and that the state government had no power to ban them.