ALOR SETAR: Kedah will continue defending its decision to stop issuing and renewing number-betting outlet licences by taking the legal battle to the Federal Court, says Datuk Seri Muhammad Sanusi Md Nor.
The Mentri Besar said the state government had begun the process of seeking leave to appeal following a Court of Appeal ruling that went against Kedah.
He said on Saturday (June 6) that the state had expected the outcome, although the court's full grounds of judgment were only released recently.
“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,” he said.
On June 2, the Court of Appeal released its written judgment for ruling last December that the Kedah government could not impose a blanket ban on lottery and betting businesses solely because it opposed gambling.
In the majority decision, Justice Datuk Faizah Jamaludin held that a state government's powers were limited to matters provided under the Ninth Schedule of the Federal Constitution and the Local Government Act.
She said state authorities could regulate licensing based on premises-related factors such as building conditions, safety compliance, sanitation, public nuisance and suitability of location.
According to the judgment, local authorities could refuse or decline to renew business licences if premises failed to meet safety requirements, had sanitation issues or caused disturbances to the public.
Faizah said the refusal to issue and renew licences had instead reflected a policy objection to betting and lottery activities rather than concerns over the premises themselves.
She noted that some operators had occupied the same premises for 38 years.
The Federal Court is scheduled to hear Kedah's application for leave to appeal on Aug 12.
Kedah's Darul Aman Information Secretariat reported that the dispute began after Sanusi announced on Nov 14, 2021, that the state would stop issuing and renewing gambling outlet licences statewide.
The move was challenged in court by gambling and lottery operators later that month.
On June 20, 2024, the Alor Setar High Court ruled that the state's decision to stop renewing gambling outlet licences was unlawful and unreasonable.
The state government appealed, but the Court of Appeal, in a 2-1 majority decision on Dec 12, 2025, upheld the High Court ruling and declared the state's directive not to issue or renew gambling outlet licences unconstitutional.
