A week is a long time in politics…especially in Malaysia

They say a week is a long time in politics…just ask Australia’s Kevin Rudd.

Another who is unlikely to argue this old adage is Malaysian billionaire Vincent Tan.

Ascot Sports awarded a betting license

Tan was apparently pretty sure that his company Ascot Sports had been awarded a sports betting license by the Malaysian government.  And Tan wasn’t the only one convinced that the license had been issued.

The Malaysian and broader news media widely reported throughout May that Ascot had been awarded the license.  Deputy Finance Minister Chor Chee Heung told the Associated Press of the license approval on 13 May, justifying the governments controversial stance by saying, “The government all along has been hesitant to allow such activities, but then again if the government doesn’t control it with a set of rules, the underground market for sports betting shall continue to thrive, like it or not.”

You know that old chestnut – ‘we are opposed to gambling and concerned for problem gamblers…but if its going to happen anyway we may as well get a piece of the pie’.  Indeed illegal sports betting throughout Malaysia is rife and worth anywhere from 10 to 20 billion ringgit annually depending on who you ask.  And like many governments around the World, Malaysia’s Barisan Nasional would have been rubbing their hands together at the thought of all that gaming tax revenue soon to be coming their way – around $900 million a year according to Tan.

According to reports in May, the license allowed for restricted betting services to be offered by Ascot.  The restrictions being: only non-Muslim adults could place bets; online betting was not permitted; Ascot could only operate in 200 of the 680 Sport Toto outlets.

Political and religious firestorm ensues

Sports betting, or any gambling for that matter is a very delicate subject in Malaysia it seems – owing largely to the fact that two-thirds of the country’s population are Muslim and fundamentally opposed to it.  So while Ascot was busily preparing itself to start accepting bets in August, the government was feeling significant pressure from Islamic interests, most notably PR’s Pan-Malaysian Islamic Party (PAS).

Responding to allegations from Tan that PAS and the broader Pakatan Rakyat was behind the anti-gambling campaign that eventually caused a government backflip, PAS member Dzukefly Ahmad told the Malaysian Insider that, “It is a compliment that Vincent Tan wants to put the blame on Pakatan Rakyat. It shows that we have been able to stop Vincent Tan from ruining society even further.”

On 8 June, Prime Minister Najib Razak responded to an opposition party query in writing  saying:

“The government is still getting feedback and views from various quarters on the proposed licensing for a bookmaker in Malaysia aimed at reducing and subsequently eliminating unlicensed gambling in Malaysia.”

License revoked (or never issued?)…

Yesterday Prime Minister Razak told reporters “I hereby wish to announce that the government has decided that the license will not be issued.”

In slightly contradictory statements, he also said that “the approval was decided in principle” and that the Finance Ministry had the right to revoke any gambling licenses issued so Ascot would not be entitled to any compensation.  So it’s unclear as to whether there is an admission that the license was in fact awarded and revoked, or a denial that it was ever awarded in the first place.

Tan maintains that a license was issued. He apparently showed a Finance Ministry letter dated Jan 13 that gave him conditional approval for the license to a bunch of gaming analysts at a luncheon this week.

It’s all a bit confusing and the truth of the matter is probably going to be buried under pile of political rhetoric and closed door, back room negotiations, never to see the light of day.

Either way, the fact remains that sports betting in Malaysia remains illegal and illegal sports betting will continue to flourish.

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