Malaysian government says no new gambling permits have been issued since the 1990s

Malaysia’s finance ministry has rejected claims that fresh gambling permits were issued in Kedah, saying the number of licensed gambling outlets has stayed unchanged since the 1990s. For PSPs and acquirers, the useful part is not the political sparring — it is that the federal line remains: no new licences, tighter enforcement, and a legal framework that still draws a hard distinction between licensed activity and outright bans.

1. The ministry said no new gambling licences have been granted and that the number of existing licences and permits remains the same as those approved since the 1990s. It also said the Madani government is taking a “stern and responsible approach” to limiting licensed gambling activity and enforcing strict regulations.
2. The response came after Kedah Chief Minister Sanusi Nor accused the federal government of failing to control gambling or issuing fresh permits in the state. The ministry’s rebuttal was published after local media reported the claim on Thursday.
3. The statement follows a separate legal setback for Kedah on 12 August, when the Federal Court declined the state’s application to overturn a ruling that blocked it from refusing to renew gambling licences for pool betting and lottery businesses. According to Bernama, the three-judge panel said Kedah had not met the threshold under Section 96(a) of the Courts of Judicature Act 1964, and the state was ordered to pay RM50,000 ($12,397) in legal costs.
4. That court fight matters for operators because the Court of Appeal had already said states cannot impose broad bans on gambling operations simply because they object to gambling in principle. In that judgment, the court said state licensing powers should focus on premises issues such as safety, sanitation, nuisance and location suitability, not wider policy objections.
5. The finance ministry also said that between 2020 and 2022, when Malaysian Islamic Party was part of the federal government, no attempt was made to ban licensed gambling or revoke existing permits. Instead, the number of special lottery draws increased from eight to 22 a year; under the current Madani administration, that number has been restored to eight.

There is also a separate policy track in motion: earlier this year, Deputy Prime Minister Datuk Seri Fadillah Yusof said a new law was being reviewed to curb illegal gambling. The proposal could come as a special act or be folded into existing cybercrime law, including the 1953 Common Gaming Houses Act, which defines gaming as “the playing of any game of chance or of mixed chance and skill for money or money’s worth”.