Kedah Government Ordered to Pay RM50,000 Over Gambling Licence Ban
Jacob Mitchell 
Key Takeaways:
- Kedah state government lost a three-court battle.
- Court ordered RM50,000 in costs for gambling licence ban.
- Public donations covered the RM50,000 target.
- Yayasan Kedah Sejahtera collected funds in under 24 hours.
- The ban on gambling licences was deemed unconstitutional.
The Kedah state government has been ordered to pay RM50,000 in court costs following its loss in a three-court battle concerning its ban on gambling licences. In response, Yayasan Kedah Sejahtera (YKS) initiated a public donation drive, which successfully met the RM50,000 target in under 24 hours. The fund, launched on Saturday, was promptly closed by Sunday, August 16, after reaching the required amount.
Legal Challenge and Court Rulings
The RM50,000 court order represents the culmination of a three-court losing streak for the PAS-led Kedah state government. The legal proceedings began after Kedah issued a directive instructing local authorities to cease issuing gambling licences.
The High Court initially ruled this directive unconstitutional, a decision that challenged the state's authority in this domain, a trend seen across regulated online casino markets. This finding was subsequently upheld by the Court of Appeal, which affirmed the High Court's judgment with a 2-1 majority.
The final appeal to the Federal Court was unanimously rejected by a three-judge panel, chaired by Datuk Rhodzariah Bujang. The Federal Court concluded that Kedah had failed to meet the necessary threshold under Section 96(a) of the Courts of Judicature Act 1964, leading to the imposition of RM50,000 in costs against the state government, affecting the broader Malaysia gambling regulation.
Public Funding and Precedent
Yayasan Kedah Sejahtera (YKS) was designated as the official collection agent for the public donation drive, an arrangement that received approval from the office of the Kedah Menteri Besar. Zulkifli Yahaya, the political secretary to Kedah Menteri Besar Datuk Seri Muhammad Sanusi Md Nor, formally announced the immediate closure of the donation drive once the target was achieved.
He conveyed the message: "Rakyat Malaysia yang budiman, saya dimaklumkan oleh YKS bahawa Dana Sumbangan Rakyat Untuk Membiayai Kos Mahkamah Isu Pengharaman Judi telah mencapai sasaran yang diperlukan." (Dear fellow Malaysians, I have been informed by YKS that the People’s Donation Fund to Cover Court Costs on the Gambling Ban Issue has reached the required target.) The collected funds are slated for verification and transfer in strict adherence to YKS financial procedures, ensuring they are channelled through proper legal and financial processes before being remitted to the relevant parties.
Broader Implications and Party Pattern
This fundraising initiative is consistent with a discernible pattern within PAS politics, where public and internal donation campaigns are frequently organized. These campaigns aim to cover various legal expenditures, including court costs, defamation damages, and legal fees incurred from cases lost by the party's leaders or state governments.
The contributions are often presented as collective obligations, and in certain instances, are explicitly framed as 'jihad' donations. The underlying objective of these drives is to safeguard leaders from potential bankruptcy or disqualification from public office due to the financial burdens imposed by legal judgments. The donation page itself was established in the same week the final court order was issued.
