The legal battle between Malaysia's federal government and the state of Kedah has culminated in a landmark ruling for the legitimate gambling industry. The nation's highest court determined that regional administrations cannot shut down legal operations for political reasons as long as the businesses hold federal permits.
- Licensing freeze: The Finance Ministry confirmed that the current administration has issued zero new licenses. All active permits in the sector date back to the 1990s.
- Kedah's appeal fails: The Federal Court rejected the state's attempt to challenge the renewal of betting and lottery licenses, ordering the region to pay $12,397 in legal costs.
- Limits on state power: Local authorities can only reject license renewals based on objective factors, such as zoning, safety, or sanitation violations.
- Reduction in draws: The government cut the number of annual special lottery draws from 22 to 8, reversing the market expansions made by previous administrations between 2020 and 2022.
- Crackdown on the illegal market: Authorities are drafting legal amendments (including to the Common Gaming Houses Act 1953) to shift law enforcement focus toward strictly targeting illegal and online gambling.
