Malaysia’s High Court has ruled that a gambling-related debt incurred in Singapore cannot be used to support bankruptcy proceedings in Malaysia, reinforcing the country’s long-standing public policy against enforcing gambling contracts.
The decision concerned Lee Fook Khuen, who had been pursued by Resorts World at Sentosa over a S$5.93m ($4.6m) debt arising from a S$10m casino credit facility.
The debt was originally recognised by the Singapore High Court in 2018 and later registered in Malaysia under the Reciprocal Enforcement of Judgments Act 1958.
Resorts World subsequently sought to bankrupt Lee after the debt remained unpaid. The bankruptcy action was initially approved by a senior assistant registrar at the Ipoh High Court in February 2025. However, High Court judge Moses Susayan set aside that decision in May, with written grounds released on 6 July.
The ruling followed the Federal Court’s March 2025 decision in Datuk Ting Ching Lee v Ting Siu Hua. In that case, Malaysia’s apex court held that gambling-related credit facilities form part of a wider gambling contract and are therefore void from the outset under the Contracts Act 1950.
Judge Moses said the High Court was bound by that precedent, even where the debt had been lawfully incurred and recognised in another jurisdiction. He found that the casino credit facility could not be separated from its gambling purpose and therefore could not lawfully support bankruptcy proceedings in Malaysia.
The court also stated that registered foreign judgments do not prevent Malaysian courts from examining the underlying nature of a debt where public policy is engaged. It added that parties could not bypass the prohibition by describing gambling credit as a loan or other financial arrangement.
No order was made as to costs. Resorts World has filed a notice of appeal against the ruling, according to Lee’s legal representatives.
The ruling comes against a backdrop of wider efforts to tighten gambling regulation in Malaysia, from police raids on illegal casino operations and cross-border cooperation targeting World Cup betting syndicates, to new social media rules requiring identity verification for advertisers promoting gambling-related content.
Under Malaysia’s Contracts Act 1950, agreements made by way of gaming or wagering are generally considered null and void
