The Sri Lankan government has confirmed that the mandate of the Gambling Regulatory Authority, responsible for all operations in the gambling sector, will come into force on December 1.
This date marks a new milestone in a lengthy process: the Cabinet approved the draft bill in February 2025, and it was presented to Parliament in June. However, how exactly it will transform the country’s gambling ecosystem remains to be seen.
The Gambling Regulatory Authority Bill aims to unify Sri Lanka’s gambling landscape and abolish the existing Acts on gambling, casinos, and horse racing betting. Supporters of the reform point to the outdated nature of the current legislation. The Gambling Act was drafted in 1887, and the regulations on casinos and horse racing betting were introduced in 1988.
The new document will close loopholes and eliminate overlaps between different laws. The government hopes to “promote tourism, employment, and economic development through regulated gambling activities,” improve tax collection, combat the shadow market, and stimulate the growth of online gambling.
The new regulator will operate “as the sole independent body with a broad and comprehensive mandate over gambling industry operations,” including online gaming and offshore gambling activities on ships in the port of Colombo. It will issue and renew licenses, monitor compliance with licensing conditions, and collect taxes.
The board will include the Secretary of the Ministry of Finance, the Commissioner General of the Inland Revenue Department, the Head of the Financial Intelligence Unit, and the Inspector General of Police. Three additional members with expertise in gambling regulation will be appointed by the Minister of Finance, and one of them will serve as Chair. The board will also appoint the Director-General.
Penalties for violating the law include fines and imprisonment for up to two years. These sanctions may be applied separately or together.
Sri Lanka is already home to seven casinos. During the opening of the $1.2 billion City of Dreams Sri Lanka project, Melco Resorts & Entertainment Chairman Lawrence Ho expressed hope that “Sri Lanka could become for India what Macau is for China.”
“Macau is the biggest gaming market in the world. Colombo is the closest destination to India, and an integrated resort like this gives the city huge potential,” he said.
Although Ho identified India as a key market, Sri Lanka may also attract tourists from Thailand, where attempts to implement casino regulation have stalled due to political turmoil.
Macau’s gross gaming revenue exceeded $28.35 billion, so even partially replicating this success would provide a significant boost for a country still recovering from an economic crisis.
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