Malaysia’s Ministry of Finance has rejected claims that the federal government has expanded licensed gambling, saying no new gambling licences or permits have been issued since the current Madani administration took office in late 2022.
The ministry said the number of gambling licences and permits currently in force remains based on approvals that have existed since the 1990s. It also denied authorising additional gambling premises in Kedah or elsewhere under the present government.
The clarification was issued after Kedah Menteri Besar Muhammad Sanusi Md Nor made comments about gambling licences in the state. The Finance Ministry said those remarks could create the incorrect impression that the federal government had failed to control gambling activity or had approved new outlets.
According to the ministry, existing licence holders remain subject to strict operating conditions, while the government continues to limit licensed gambling and intensify enforcement against illegal and online operators.
The ministry also highlighted changes to Malaysia’s special lottery draw schedule. Pakatan Harapan reduced the number of special draws from 22 to eight annually in 2020. The frequency was later restored to 22 under subsequent Perikatan Nasional and Barisan Nasional administrations.
After the Madani government entered office at the end of 2022, it reversed that increase, reducing special draws to eight per year from January 2023. The Finance Ministry also noted that no nationwide decision to abolish existing licensed gambling operations was made during the 2020-2022 federal administration, which included PAS.
The dispute over gambling regulation in Kedah has also recently returned to the courts.
On 12 August, Malaysia’s Federal Court rejected the Kedah government’s application for permission to appeal an earlier judgment concerning pool betting and lottery outlet licences. A three-judge panel ruled that the state had failed to meet the legal threshold required for the appeal to proceed and ordered Kedah to pay RM50,000 in costs.
The case followed Kedah’s decision to stop issuing and renewing business-premises licences for pool betting operators. In December 2025, the Court of Appeal ruled by a 2-1 majority that the blanket non-renewal policy was unconstitutional and unlawful because regulation of the underlying pool betting activity falls under federal authority.
The appellate ruling did not prevent local authorities from rejecting individual premises applications for legitimate reasons such as planning, zoning, safety, public health or nuisance concerns. Instead, it found that states could not effectively prohibit a federally licensed gambling activity through a general refusal to issue premises licences based solely on opposition to gambling.
Separately, Malaysia is working on broader legislation targeting illegal gambling, particularly online operations. Deputy Prime Minister Fadillah Yusof said in February that the government was drafting a bill designed to provide a more comprehensive framework for tackling unlawful gambling activity.
The Finance Ministry said its current policy remains focused on maintaining tight controls over existing licensed gambling while strengthening action against unlicensed operators and online gambling services.