Kedah pushes legal challenge after Court of Appeal rules against gambling licence freeze

The Kedah government is refusing to give up its fight against the Court of Appeal's ruling that its decision to freeze number-betting outlet licences was unlawful. Menteri Besar Datuk Seri Muhammad Sanusi Md Nor has announced that the state will appeal the decision all the way to the Federal Court, a move that could have significant implications for the state's stance on gambling.

Background & Context

The dispute between Kedah and the gambling and lottery operators began in November 2021, when Sanusi announced that the state would no longer issue or renew licences for number-betting outlets. The decision was met with opposition from the operators, who challenged the ban in court.

The case has been winding its way through the courts for several years, with the High Court ruling in 2024 that the ban was unlawful. The Court of Appeal upheld this decision in December 2025, ruling that state powers were confined to matters under the Federal Constitution's Ninth Schedule and the Local Government Act.

Key Details

The Court of Appeal's written grounds for the decision were released on June 2, and Sanusi has stated that the state will appeal the decision to the Federal Court. The application for leave to appeal is scheduled to be heard on August 12. Sanusi was quoted as saying, "We are not giving up and will bring this case to the highest court. We have already started the process to go to the Federal Court."

The state had anticipated the outcome of the Court of Appeal's decision, although the full written judgment was only recently released. The court noted that licensing decisions must be tied to premises conditions such as safety, sanitation and public nuisance, not general opposition to gambling activities. It also observed that some operators had been operating at the same premises for decades, suggesting that the state's decision was not based on any specific issues with the operators themselves.

What Experts Say

The decision to appeal the Court of Appeal's ruling to the Federal Court is a significant move, and could have implications for the state's stance on gambling. "The Kedah government's decision to appeal the Court of Appeal's ruling suggests that they are committed to their policy of opposing gambling," said Dr. Norhayati Mokhtar, a lecturer in law at a local university. "However, the Federal Court's decision will ultimately determine the validity of the state's powers in this regard."

Dr. Norhayati noted that the Court of Appeal's decision was based on the Federal Constitution's Ninth Schedule and the Local Government Act, which restrict the state's powers to matters related to public health, safety and nuisance. "The state's decision to impose a blanket ban on number-betting outlets was not based on any specific issues with the operators themselves, but rather on a general opposition to gambling," she said. "This decision suggests that the state's powers are limited to matters related to the specific premises, rather than the activity itself."

Key Takeaways

• The Kedah government will appeal the Court of Appeal's ruling to the Federal Court.
• The state's decision to impose a blanket ban on number-betting outlets was unlawful, according to the Court of Appeal's decision.
• The state's powers are limited to matters related to public health, safety and nuisance, according to the Federal Constitution's Ninth Schedule and the Local Government Act.
• The Federal Court's decision will ultimately determine the validity of the state's powers in this regard.

What This Means For You

The decision to appeal the Court of Appeal's ruling to the Federal Court has significant implications for the state's stance on gambling. If the Federal Court upholds the Court of Appeal's decision, the state will be forced to reconsider its policy on number-betting outlets. This could have a significant impact on the state's economy, as well as on the lives of those who work in the industry.

"The decision to appeal the Court of Appeal's ruling suggests that the state is committed to its policy of opposing gambling," said Dr. Norhayati. "However, the Federal Court's decision will ultimately determine the validity of the state's powers in this regard. If the state loses, it will be forced to reconsider its policy and may need to issue new licences for number-betting outlets."

This is a developing story, and we will continue to provide updates as more information becomes available.