Kedah defends gambling licence non-renewal in appeal court hearing

State argues jurisdiction lies with local authorities as betting firms challenge move.

Kedah defends gambling licence non-renewal in appeal court hearing

Key points:

– State insists refusal to renew gambling premises licences is legal

– Betting operators argue decision undermines federal authority

– Court of Appeal reserves judgement following heated hearing

The Kedah State Government has defended its decision to stop renewing gambling premises licences, stating that it acted within its jurisdiction and did not encroach upon federal authority. The matter was heard before the Court of Appeal on Monday, as reported by The Edge.

State legal adviser Saifulrijal Azhari argued that under the Federal Constitution’s Ninth Schedule, specifically Item 4 of the State List, decisions regarding local authorities and business premises licensing fall under the state’s remit. He asserted that Kedah’s move was lawful and grounded in its administrative authority, rather than a challenge to federal powers over gambling regulation.

The state is appealing a 2023 Alor Setar High Court decision which deemed the non-renewal policy illegal and irrational. That ruling followed six judicial review applications brought by pool betting companies and their agents, who claimed the decision effectively banned their lawful operations despite holding federal gambling licences under the Pool Betting Act 1967.

Good to know: While gambling licences are issued by the federal Ministry of Finance, state governments are responsible for granting premises licences that allow such businesses to operate physically within their borders

Representing the respondents, lawyer Brian Foong argued that the state’s decision was an attempt to override federal powers and impose a de facto ban on gambling. He highlighted Item 4(l) of the Federal List, which places regulation of betting and lotteries under the federal government’s exclusive control.

A three-member appellate panel led by Datuk Azizah Nawawi reserved judgement, with a decision to be delivered at a later date. The hearing, which lasted over an hour, included extensive questioning from the bench on the limits of federal and state authority.

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