KUALA LUMPUR: Economists have warned that the Kedah government's decision to enforce a ban on gaming and lottery ticket outlets in the state will drive away investors and encourage punters turn to illegal online betting activities.
Associate Professor Dr Aimi Zulhazmi Abdul Rashid said it could impact the state government's coffers although tax contributions from gaming and lottery ticket operators might not be significant.
"Closing down these outlets may drive away investors, who are not in favour of the move enforced by the Kedah government. They might look into placing their investments in neighbouring states that still allow gaming and lottery ticket outlets to operate," the economic analyst at Universiti Kuala Lumpur's Business School said.
Aimi was not surprised with the Kedah government's move since such a ban had been enforced in other Pas-led states, such as Kelantan and Terengganu.
He said online gambling activities, though illegal, was spreading in rural areas, even before the ban was imposed.
"It is hard to address this technological threat. Gaming companies are known to have online applications that can be accessed using even via analog phones."
Putra Business School economics analyst Associate Professor Dr Ahmed Razman Abdul Latiff agreed with Aimi that the ban might lead to an increase in illegal online gambling activities.
The Kedah government, he said, would need to address any social impact caused by illegal online activities.
"Shutting down gaming premises would cause a minor loss because there will always be other businesses that offer different services to take up the premises.
"The state government should instead focus on efforts to combat the social impact, because technology allows punters to turn to online gambling from the comfort of their homes."
Razman said the state government must be wary of online gaming addiction issues.
"Compulsive gamblers will continue to find ways to fulfil their addiction. They can go to other states or turn to online gambling.
"The state government probably does not have much jurisdiction, experience and power to monitor online gaming activities. It will be a challenge for it to curb gambling activities because the ban will not stop people from doing so."
Razman proposed the Kedah government work with the federal government if it was serious about addressing the matter.
He said only the federal government had the necessary resources to monitor and tackle it.