High Court rules Kedah's ban on gaming licences unconstitutional

ALOR SETAR: The decision by the Kedah government to cease issuing and renewing business licences for gaming operators is unconstitutional, the High Court here has ruled.

The court determined that the decision, passed during a state executive council meeting, was ultra vires and violated the Federal Constitution.

China Press reported, based on a Sin Chew Daily report, that the judgment, which ruled in favour of the representatives of three gaming companies who filed suit against the Kedah government, was delivered by Judge Mahazan Mat Taib on June 20.

It is learnt that the Kedah government filed an appeal against the decision three days later.

In the judgment, the High Court ruled that the decision by the Kedah government to stop issuing and renewing business premises licences from Jan 1, 2023, violated the Federal Constitution.

The decision was passed during the state executive council meeting on December 8, 2021.

The judgment noted that following the state executive council’s decision, the Alor Setar City Council also issued a notice to the operators, stating that all related business premises licences would no longer be renewed.

"Under Articles 73, 74, 75, and 80(1) of the Federal Constitution, the state government's decision is illegal and must be revoked," the daily reported.

The High Court also ordered the defendants — the Kedah government, Kedah Mentri Besar Datuk Seri Muhammad Sanusi Md Nor, Alor Setar City Council, and its mayor Datuk Mohd Yusri Md Daud — to compensate the plaintiffs for their losses.

Meanwhile, in Perlis, the case of Sports Toto Malaysia and four other parties, which challenged the Perlis government's decision not to allow betting outlets to apply for business premises licences, has been brought to the Court of Appeal for pre-trial case management.

The plaintiffs had earlier filed for judicial review in July last year, but the application was dismissed by the Kangar High Court in January this year.

The five parties then brought the case to the Court of Appeal.

On July 26 of last year, the plaintiffs had filed the case at the Kangar High Court, alleging that the move by the Kangar Municipal Council to cease renewing the business premises licences of gaming outlets was ultra vires and violated the Federal Constitution. The directive was issued on April 27, 2023.

They claimed that the decision had resulted in unemployment and loss of income among its employees and that the move had infringed the rights of non-Muslims.