Can Kedah ban gambling operations licensed under federal law?

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Kedah Cannot Impose a Blanket Ban on Federally Licensed Gambling Operations

The Kedah State government cannot implement a blanket policy to prohibit the operation of gambling activities licensed under federal law within the state. This position was affirmed by the Court of Appeal, a decision subsequently upheld by the Federal Court's dismissal of the state government's application for leave to appeal. The Court of Appeal clarified that while local authorities possess the discretion to refuse licenses based on specific, legitimate grounds related to premises and local governance, they cannot adopt a statewide prohibition of activities authorized by federal legislation.
Federal Court Upholds Court of Appeal Ruling

The Federal Court's decision on August 12 definitively ended the Kedah State government's attempt to appeal the Court of Appeal's earlier ruling. The apex court found that the state government had failed to meet the necessary threshold for granting leave to appeal, thereby cementing the Court of Appeal's judgment. This outcome effectively quashed the state government's directive to cease the issuance and renewal of business licenses for pool betting operators.
State Authority Limited in Federally Regulated Fields

The Court of Appeal, through Justice Faizah Jamaludin, articulated that the state's authority is circumscribed when dealing with activities licensed under federal statutes and falling within federal jurisdiction. While local councils can deny licenses on grounds such as planning, zoning, safety, public health, or building compliance, these refusals must be based on legitimate, premises-specific reasons. A statewide ban, irrespective of individual circumstances, was deemed unconstitutional as it overstepped the state's competencies.
State Government Considers Further Legal Avenues

Despite the Federal Court's decision, Kedah Menteri Besar Datuk Seri Muhammad Sanusi Md Nor indicated that the state government would explore any remaining legal avenues to pursue its policy aimed at eliminating gambling. Following the court's ruling, Sanusi stated that legal advisors would be consulted to ascertain the implications and identify any potential alternative strategies that might be permissible within the legal framework. Kedah PAS has also publicly committed to continuing its efforts to curb gambling in the state.

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Can Kedah ban gambling operations licensed under federal law?

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