Court Of Appeal Dismisses Kedah’s Gaming Licence Appeal By 2-1 Majority

PUTRAJAYA, Dec 12 (Bernama) -- The Court of Appeal, by a 2-1 majority, has affirmed the ruling of the Alor Setar High Court, declaring the decision of the Kedah government to cease the issuance and renewal of business licences for gaming operators to be unconstitutional and in violation of the Federal Constitution.

The appeal, filed by the state government and Menteri Besar, Datuk Seri Muhammad Sanusi Md Nor, was dismissed as lacking merit by Federal Court judge Datuk Dr. Lim Hock Leng and Court of Appeal judge Datuk Faizah Jamaludin. Chief Judge of Sabah and Sarawak Datuk Azizah Nawawi delivered a dissenting opinion.

In the majority judgment, Justices Lim and Faizah held that the state government's directive was ultra vires its powers and fundamentally inconsistent with the Federal Constitution.

Justice Lim articulated that the subject of pool betting and lotteries falls within the exclusive legislative competence of the federal government, administered by the Ministry of Finance in Putrajaya, which holds sole authority for the issuance and regulation of licences for operators and agents.

Concurrently, Justice Faizah found that the state's refusal to renew premise licences constituted an unlawful encroachment upon federal powers, thereby undermining the statutory authority of the finance minister as established 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,” she said.

The sole dissenting judge, Justice Azizah, however, held that the appeal ought to be allowed, concluding that the state’s decision constituted a legitimate exercise of public policy discretion.

The litigation originated from a judicial review application filed on June 20, 2024.

The Alor Setar High Court, presided over by then-Judge Mahazan Mat Taib, allowed the application brought by pool betting agents, companies, and their principal officers, against the state government's directive.

-- BERNAMA