PUTRAJAYA: The Court of Appeal, by a 2-1 majority, has affirmed the ruling of the Alor Setar High Court, declaring the Kedah government’s decision to cease the issuance and renewal of business licences for gaming operators unconstitutional and in violation of the Federal Constitution.
The appeal, filed by the state government and Mentri Besar Datuk Seri Muhammad Sanusi Md Nor, was dismissed as lacking merit by Federal Court judge Justice Lim Hock Leng and Court of Appeal judge Justice Faizah Jamaludin.
Chief Judge of Sabah and Sarawak Justice Azizah Nawawi delivered a dissenting opinion, Bernama reported.
In the majority judgment, Justices Lim and Faizah held that the state government’s directive was ultra vires its powers and fundamentally inconsistent with the Federal Constitution.
Justice Lim stated that the subject of pool betting and lotteries falls within the exclusive legislative competence of the Federal Government, administered by the Finance Ministry in Putrajaya, which holds sole authority over the issuance and regulation of licences for operators and agents.
Justice Faizah similarly found that the state’s refusal to renew premises licences constituted an unlawful encroachment upon federal powers, thereby undermining the statutory authority of the finance minister as established under the Pool Betting Act 1967.
“This situation has created a real conflict over state and federal powers under the Ninth Schedule of the Federal Constitution.
“Thus, the High Court judge’s decision was not in error,” she said.
The sole dissenter, Justice Azizah, held that the appeal ought to be allowed, concluding that the state’s decision constituted a legitimate exercise of public policy discretion.
The litigation originated from a judicial review application filed on June 20, 2024.
The Alor Setar High Court, presided over by then-judge Justice Mahazan Mat Taib, allowed the application brought by pool betting agents, companies and their principal officers against the state government’s directive.
