The Madani government has maintained a freeze on issuing new gambling licences and permits since assuming office at the end of 2022. No new licences or increases in gambling premises have been approved during this period, with existing licences largely based on approvals dating back to the 1990s [1, 2, 3, 4, 5].
Strict regulatory conditions apply to all licence holders under the current administration, reinforcing control over the gambling sector [1, 3, 4, 5]. Throughout the previous federal administrations between 2020 and 2022, which included the PAS party, no proposals or decisions were made to ban licensed gambling or revoke existing licences nationwide [1, 2, 3, 4, 5].
In 2020, the Pakatan Harapan government reduced the number of special lottery draws from 22 per year to eight, though successive Perikatan Nasional and Barisan Nasional administrations increased it back to 22 draws annually [1, 2, 3, 4, 5]. After the Madani government took office in late 2022, it reversed this trend by again limiting the special draws to eight times a year starting January 2023 [1, 2, 3, 4, 5]. Prime Minister and Finance Minister Datuk Seri Anwar Ibrahim has highlighted this reduction as part of efforts to curb gambling, stating, "You held 22 special draws, but I reduced it to eight. Is it enough? No. But why am I being insulted for this? Before you attack me, you should look at yourself in the mirror first" [6].
In the state of Kedah, the government stopped issuing and renewing licences for lottery and number-betting outlets from November 2021, effectively ending licensed physical lottery operations by 2023 despite operators holding federal licences [7]. The courts ruled that the state could not use premises licensing to forbid federally regulated gambling activities [7]. On August 12, 2026, the Federal Court rejected Kedah’s application to appeal a decision preventing the state from issuing or renewing gambling business premises licences and ordered the state government to pay RM50,000 in costs related to the case [1, 3, 7].
Kedah Menteri Besar Datuk Seri Muhammad Sanusi Md Nor defended his controversial remarks about gambling by clarifying he targeted gambling tycoons defending the industry, not Prime Minister Anwar Ibrahim or religious leaders. Sanusi also noted that authorisation for gambling licences lies with the Finance Ministry under the Madani government, not the state [1, 2, 3, 8, 4, 7]. He said, "I targeted the gambling tycoons. I did not target ustaz, religious leaders or the prime minister. I targeted the gambling tycoons. Have the courage to speak the truth. They are harsh words, but they are true" [8]. He added, "I have the authority to act, so I take action at my level. I have the space to speak, so I speak" [7].
The next major development in the sector may arise from ongoing governmental regulatory reviews or legal challenges following the Federal Court’s recent ruling against Kedah's licensing actions.
