Tiger Chua: Gambling tax for anti-gambling drive

By Yow Hong Chieh

June 26, 2010

MCA president Datuk Seri Dr Chua Soi Lek today suggests the government use tax revenues from legalised gambling to set up a fund to teach Malaysians not to gamble. — Picture by Jack Ooi

KUALA LUMPUR, June 26 — MCA president Datuk Seri Dr Chua Soi Lek today said the government should use tax revenues from legalised gambling to set up a fund to teach Malaysians not to gamble.

“The revenues from gambling should be placed into a separate fund... This fund can be used to teach our citizens not to gamble,” he said, adding that it could also be used for welfare purposes.

He explained that government revenue from legal forms of gambling now goes into a consolidated fund together with other revenue streams.

Chua said that while he respected Datuk Seri Najib Razak’s decision not to reissue the football betting licence to Tan Sri Vincent Tan’s Ascot Sports Sdn Bhd, there was still the question of how to tackle illegal gambling in the country.

“Illegal gambling is widespread and it may be worth as much as RM10 billion a year,” he said.

Chua also denied that Najib’s decision to disallow the football betting licence was yet another flip-flop.

“I was given to understand that no licence was given and as the prime minister has said, he needs a certain period to gather feedback,” he said.

“And since this has given rise to very divergent views — some supporting, some objecting — in order to avoid this issue creating divisiveness he probably thought it was best not to continue.”

Chua refused to comment on the possible reasons for Tan’s premature announcement.

“I don’t know the details [of] what made him announce, to be honest,” he said.

“I’m sure Bursa Malaysia and the rest will look into it.”

Tan’s listed Berjaya Corporation Bhd told the bourse last May 12 that it was paying RM525 million for the tycoon’s 70 per cent stake in Ascot Sports which received approval pending issuance of a full licence.

Najib denied issuing the licence in a written reply to Parliament on June 7, prompting regulators to query Berjaya Corporation about its filing.

Tan had said he will donate the entire proceeds of the share sale to his charity Better Malaysia Foundation while his son Datuk Robin Tan will keep 30 per cent stake in Ascot Sports.

Tan had argued that the government can earn as much as RM3 billion in tax revenues from football betting. It is understood that he will issue a statement on Monday.