Sports Toto & Magnum 4D Welcome Court's Ruling To Overturn Ban On Lottery Outlets In Kedah

The Alor Setar High Court ruled that the ban was unconstitutional.

Cover image via Sam Fong/The Edge Markets & FMT

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STM Lottery Sdn Bhd and Magnum Corporation Sdn Bhd, the companies behind Sports Toto and Magnum 4D respectively, have welcomed the High Court's decision to overturn the ban on lottery outlets in Kedah

In a joint press conference held today, 10 July, both companies expressed relief following the Alor Setar High Court's ruling on 20 June, which they described as a milestone that brought hope to their employees who lost their jobs after the ban in January 2023, reported Sin Chew Daily.

Before the ban, the two gaming companies operated 36 lottery outlets in Kedah. Sports Toto employed about 80 employees in the state, while Magnum 4D had about 60.

STM Lottery assistant general manager (North) Yip Kok Chyuan said the High Court's ruling affirmed the need for the Kedah state government to uphold consistency with the Federal Constitution, which reserves the authority to enact laws and regulations concerning gambling solely to the federal government.

"We hope that the state government can assist us in renewing our business licences and allow our agents to resume operations at their outlets as soon as possible," Yip added.

Both companies are currently assessing the financial impact of the ban, as the High Court has also ordered the Kedah state government to compensate for their losses.

TM Lottery assistant general manager (North) Yip Kok Chyuan.

Image via Wan Nabil Nasir/New Straits Times

On 20 June, Justice Mahazan Mat Taib ruled in favour of the representatives from three betting companies that sued the Kedah government

The judgment noted that under Articles 73, 74, 75, and 80(1) of the Federal Constitution, the state government's decision to refuse lottery outlets' licence renewals is illegal and must be revoked, reported Sin Chew Daily.

Mahazan also ordered the Kedah state government, its menteri besar, the Alor Setar City Council, and the city's mayor to compensate the plaintiffs for the losses incurred due to the ban.

The Kedah state government has since applied to stay the decision, pending an appeal in the Court of Appeal, reported Malaysiakini.

The New Straits Times quoted Yip today acknowledging the interim stay.

"We will assist our agents to resolve all legal requirements for them to recommence their business.

"As for the reopening [of outlets], we will follow the lawyer's advice on when to reopen them," he said.

Representatives and employees of STM Lottery Sdn Bhd and Magnum Corporation Sdn Bhd at the press conference today, 10 July.

Image via 黄腾辉/Sin Chew Daily

In November 2021, Kedah Menteri Besar Datuk Seri Muhammad Sanusi Md Nor announced that the state government would stop issuing new licences and renewing existing ones for gambling businesses:

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