Kedah may face lawsuits for millions over gambling license ban

The Kedah state government is bracing for potential lawsuits amounting to hundreds of millions of ringgit from gambling operators. This situation arises after the state lost a legal challenge regarding its authority to ban gambling premises.

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The damages could be as much as hundreds of millions.

Menteri Besar Datuk Seri Muhammad Sanusi Md. Nor stated that the state government is prepared to fight these claims in court. He emphasized that the state lost the legal battle over its authority to ban gambling, meaning it must now bear the cost of damages if operators sue. "The damages could be as much as hundreds of millions," he noted, adding that the state would fight the claims vigorously.

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We are not aware of how much profit gambling companies make, otherwise they wouldn't be pushing this far. But we will fight first (in court) because even if it's just ten sen of our money to give to a gambling company, we will fight until the end.

The Federal Court on August 12 rejected Kedah's application for leave to appeal a decision that nullified the state's action to stop the issuance and renewal of gambling premise licenses. A three-judge panel unanimously dismissed the application and ordered the state government to pay RM50,000 in costs.

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Whether they declared their actual income to LHDN during their operations in Kedah is a question. If they haven't declared, it's easy to break the claim. If they have, the amount they declared will be debated in court, and we will fight further for them to receive damages for the period we did not issue premise licenses.

Sanusi suggested that proving damages might be difficult for operators if they have not declared their income to the Inland Revenue Board (LHDN). "Whether they declared their actual income to LHDN during their operations in Kedah is a question. If they haven't declared, it's easy to break the claim. If they have, the amount they declared will be debated in court, and we will fight further for them to receive damages for the period we did not issue premise licenses," he explained. He also speculated that the lawsuits would reveal the profits made by gambling companies in Kedah.

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But it will be revealed to us later how much profit gambling companies make in Kedah. They must be making profits if they are claiming damages for how much we have to pay.