The Penang government is against gambling, legal or otherwise, and has not allowed new licensed premises to operate in the state.

Chief Minister Lim Guan Eng said that the state government was also not involved in licensing of gambling outlets, as this falls under the jurisdiction of the federal government.

"We have also opposed very strongly any proposal to build a casino in the state," Lim told reporters in Penang today.

Lim was commenting on Deputy Prime Minister Ahmad Zahid Hamidi's instruction to the police yesterday to stamp out illegal gambling in Penang.

Ahmad Zahid also claimed that some illegal gambling kingpins were funding political parties, although he did not provide specifics.

Lim said that the state government would cooperate with police efforts to curb illegal gambling, but noted that Ahmad Zahid did not name which political party was involved.

"The deputy prime minister did not single out any political party. Under normal circumstances, any attempt to single them out will be directed at the opposition.

"But since he did not identify the party, it is clear he spoke about it in general terms, we will let the police handle the matter," he said.

In 2014, Ahmad Zahid himself was embroiled in a controversy surrounding Miri-born Paul Puah Wei Seng, who was accused of illegal booking charges in Las Vegas.

Ahmad Zahid had written to the US Federal Bureau of Investigations, claiming that Puah had no criminal records in Malaysia and was not part of the notorious international crime group known as the 14k.