The Ministry of Finance has moved to dispel misconceptions about gambling regulation under the MADANI administration, issuing a formal statement on August 27 affirming that no new gambling licences or permits have been authorised since the government assumed power at the close of 2022. The clarification emerged in response to comments from Kedah Menteri Besar Datuk Seri Muhammad Sanusi Md Nor regarding gambling licensing in the state, which the ministry contended had created an inaccurate public impression that the federal government had either relinquished oversight of gambling activities or permitted the establishment of new premises.
According to the Finance Ministry's statement, all gambling licences and permits currently in operation derive solely from approvals granted prior to the MADANI government's transition into power. This distinction matters considerably in Malaysia's gambling governance framework, where regulatory continuity versus expansion represents a contentious issue particularly in states with significant Islamic representation. The ministry emphasised that maintaining the status quo regarding licensee numbers does not constitute regulatory laxity but rather reflects a deliberate decision to freeze new approvals while preserving the regulatory infrastructure inherited from previous administrations.
The Finance Ministry's statement incorporated a historical narrative spanning the period from 2020 to 2022, when both the Pakatan Harapan administration and the Malaysian Islamic Party were involved in federal governance. During that interval, the ministry confirmed that no formal proposal or governmental decision emerged concerning a nationwide prohibition on licensed gambling or the revocation of existing authorisations. This historical context appears designed to demonstrate that gambling regulation has remained consistent across multiple federal administrations despite shifting political coalitions.
A significant policy adjustment occurred regarding the frequency of special lottery draws, which constitute a substantial revenue stream for state governments in Malaysia. Between 2020 and 2022, the Pakatan Harapan administration had reduced the frequency of special draws from 22 to eight occasions annually. However, the subsequent federal government reversed this decision and expanded special draws back to 22 times per year. When the MADANI government assumed control, one of its earliest administrative actions involved reversing this expansion, reinstating the reduced frequency of eight special draws annually beginning in January 2023.
The Finance Ministry's approach to gambling regulation reflects what officials characterised as a firm and responsible posture toward the sector. The strategy incorporates three principal elements: maintaining strict conditions imposed on all existing licensees as a central control mechanism; ensuring robust regulatory oversight throughout the licensing ecosystem; and intensifying enforcement action against unlicensed gambling operations and internet-based gambling platforms. This multi-faceted approach suggests that the MADANI government's gambling policy prioritises containment and regulation rather than expansion while simultaneously targeting illegal alternatives to licensed venues.
The timing of the Finance Ministry's clarification statement proved significant given recent legal developments in Kedah. On August 12, the Federal Court had rejected the Kedah State Government's application seeking leave to appeal a previous court determination regarding the issuance and renewal of gambling business premises licences within the state. The three-judge panel, chaired by Datuk Rhodzariah Bujang and including Datuk Collin Lawrence Sequerah and Datuk Azmi Ariffin, rendered a unanimous decision on this application. The court simultaneously ordered the state government to remit costs of RM50,000, reflecting the judicial system's assessment regarding the merits of the state's legal position.
The Federal Court's decision carried implications for the division of regulatory responsibilities between federal and state authorities within Malaysia's constitutional framework. Following the court's judgment, Kedah Menteri Besar Muhammad Sanusi clarified the institutional separation governing gambling approvals within the state. According to his explanation, the Ministry of Finance retains authority to approve proposals from gambling operators seeking to commence business operations, whilst local authorities assume responsibility for issuing premises licences only after operators have secured federal ministerial authorisation. This division of labour creates a two-stage approval mechanism where federal veto power exists prior to local implementation.
For Malaysian stakeholders monitoring gambling policy development, the Finance Ministry's statement establishes a clear boundary regarding regulatory expansion. The government's position indicates that the existing constellation of gambling venues, licensees, and operational authorisations represents the maximum scope of approved activity, at least for the duration of the current administration. This freeze on new licencing extends to all categories of gambling premises rather than targeting specific segments of the industry. The decision effectively preserves the revenue status of existing licensees whilst preventing new market entrants and potential new gambling establishments.
The regulatory environment surrounding licensed gambling in Malaysia remains contested, particularly in states where Islamic parties exercise significant political influence. Kedah's extended legal dispute with the federal government regarding gambling licensing authority reflects deeper tensions within Malaysia's federal system regarding economic activity, religious principles, and state autonomy. The Finance Ministry's clarification statement appears designed not merely to address factual misunderstandings but also to reinforce the boundaries of acceptable gambling policy under MADANI governance, distinguishing the current administration's approach from both its immediate predecessors and from unregulated alternatives proliferating through digital channels.
Beyond the technical question of licence issuance, the Finance Ministry's emphasis on controlling unlicensed and online gambling indicates recognition that regulatory freeze policies function within a broader ecosystem where illegal alternatives capture displaced demand. The statement's reference to intensified enforcement action against internet-based gambling platforms acknowledges the practical reality that digital technology has fundamentally altered gambling accessibility across Malaysia. Whether strict regulation of licensed premises combined with enforcement against illegal operations successfully contains overall gambling participation rates remains an empirical question that extends beyond the Finance Ministry's current clarification.
The MADANI government's inherited gambling regulatory framework thus continues unchanged in its formal dimensions: no new licences, maintained special draw frequencies at eight annually, and strict conditions on existing operators. However, this regulatory posture exists within a transformed technological landscape where online gambling operates beyond traditional territorial jurisdiction and regulatory mechanisms. The Finance Ministry's statement provides clarity on official policy whilst simultaneously highlighting the ongoing tension between formal regulatory authority and the practical challenge of controlling gambling activity in an increasingly digital environment.
