The Ministry of Finance has reaffirmed that the MADANI administration has maintained a firm stance against expanding licensed gambling operations, declining to issue any new licenses or permits since taking control of federal government in late 2022. The clarification came as the ministry sought to address claims that suggested the government had been permissive regarding gambling expansion, particularly following comments by Kedah Menteri Besar Datuk Seri Muhammad Sanusi Md Nor about the state's gambling situation.
Under the MADANI framework, all gambling licenses and permits currently in operation remain rooted in approvals dating back to the 1990s and earlier periods. The ministry emphasized that no expansion of licensed gambling premises has occurred under the present administration, and the existing regulatory framework includes stringent conditions imposed on all licensees as a mechanism to maintain control over the sector. This approach reflects a continuing commitment to limit the proliferation of legal gambling operations whilst managing the existing licensed framework responsibly.
The government's position on gambling regulation carries particular significance in Malaysia's political landscape, where Islamic principles and social concerns about gambling's impact intersect with matters of state jurisdiction and federal oversight. The federal government's role in approving gambling operations and state authorities' responsibility for issuing premises licenses creates a complex regulatory structure that has sometimes been subject to differing interpretations by state administrations.
A notable aspect of the MADANI government's approach involves the frequency of special gambling draws. When Pakatan Harapan administered the federation from 2020, the draw frequency was reduced from 22 to eight occasions annually. However, a subsequent administration reversed this decision and increased the frequency back to 22 times per year. Upon assuming office in late 2022, the MADANI government moved quickly to reverse this expansion, reducing special draws back to eight times annually beginning January 2023.
This decision to scale back special draw frequencies reflects the government's broader philosophy of exercising restraint in gambling-related matters. Rather than pursuing an outright prohibition on licensed gambling operations, which would require navigating complex constitutional and contractual considerations, the MADANI approach seeks to minimise expansion opportunities and limit the scope of legal gambling activities through regulatory mechanisms and frequency restrictions.
The ministry's statement arrives in the context of an August 12 Federal Court decision that dealt a significant blow to Kedah's aspirations to ban gambling businesses within the state. The court unanimously rejected the Kedah State Government's application for leave to appeal a ruling that prevented the state from issuing or renewing licenses for gambling premises. The three-judge panel, chaired by Datuk Rhodzariah Bujang and including Datuk Collin Lawrence Sequerah and Datuk Azmi Ariffin, imposed a cost order of RM50,000 against the state government, underscoring the court's position on the matter.
Following this court ruling, Kedah Menteri Besar Sanusi sought to clarify the jurisdictional boundaries governing gambling regulation in his state. He noted that the Ministry of Finance retains responsibility for approving gambling operators, whilst local authorities (known as PBT in Malay) handle the issuance of premises licenses once federal approval is obtained. This division of authority, whilst apparently straightforward in principle, has evidently generated considerable friction between state and federal levels regarding the practical implementation of gambling policy.
The ongoing tension between Kedah's efforts to restrict gambling and the federal government's regulatory framework highlights how gambling policy intersects with broader questions of state autonomy in Malaysia's federal structure. Although states retain certain powers over land and licensing, the Federal Court's decisions have consistently upheld the federal government's primacy in granting gambling business approvals. This dynamic has important implications for other states seeking to adopt more restrictive gambling policies without explicit federal support.
The MADANI government's declared commitment to responsible gambling governance extends beyond simply freezing new licenses. The ministry has signalled its intention to intensify enforcement actions against unlicensed and online gambling operations, which represent the fastest-growing segments of Malaysia's gambling sector. The proliferation of online gambling, in particular, presents a challenge that traditional licensing regimes struggle to contain, as digital platforms operate across borders and jurisdictions.
From 2020 to 2022, a period during which PAS participated in federal administration, no proposal emerged to ban licensed gambling nationally or to revoke existing licenses en masse. This historical context is relevant because it suggests that even coalition partners with Islamic-oriented platforms have accepted the practical difficulties and political costs associated with attempting wholesale prohibition of established gambling operations. The MADANI government's incremental approach of restricting expansion and reducing special draw frequencies may thus represent a pragmatic consensus within the governing coalition.
The ministry's firm statement aims to counter narratives suggesting that the MADANI government has lost control over gambling expansion or adopted a permissive stance. In an environment where gambling-related concerns resonate with sections of Malaysia's electorate and align with Islamic values that remain influential in national politics, the government has strong incentives to demonstrate that it is actively managing the sector rather than allowing unchecked growth.
Looking forward, the ministry's continued emphasis on strict regulation and anti-unlicensed gambling action suggests that the government views the gambling issue as one requiring ongoing policy attention. The interaction between federal authority, state-level restrictions, international online gambling platforms, and public concerns about gambling's social impacts will likely remain a complex policy terrain. The MADANI government's decision to reduce special draw frequencies and freeze new licenses, whilst maintaining the existing licensed framework, represents a middle path that acknowledges both regulatory realities and political pressures.
