Sri Lanka parliament panel clears Gambling Regulatory Authority Bill
Sri Lanka’s Parliamentary Committee on Public Finance (CoPF) approved the draft bill to create a Gambling Regulatory Authority (GRA) on 12 August. The meeting was led by opposition MP Rauff Hakeem, who stood in for the regular chair, Harsha de Silva, who was overseas. The bill aims to set up an independent body to manage all gambling activities, including casinos and online platforms. Its main goals are to regulate the industry, protect the public, ensure fair and clear practices, and encourage tourism and economic growth.
Purpose and mandate of the authority
The proposed Gambling Regulatory Authority will oversee and licence all gambling operators, ensure they follow responsible gambling rules, prevent money laundering, and maintain safety, hygiene, and service standards in gambling venues. It will also help promote tourism and support economic growth.
The bill will repeal three outdated pieces of legislation, including the Horse Racing Betting Ordinance, the Gambling Ordinance, and the Casino Ordinance. The GRA board is planned to include senior officials such as the Secretary to 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 or their representatives. Three additional members will be appointed by the Finance Minister, serving three-year terms.
Challenges in gambling regulation
In November 2022, CoPF first called for a dedicated Gambling Regulatory Authority, but political disagreements and bureaucratic delays slowed progress.
Sri Lanka’s casino industry currently operates under fragmented laws, the Casino Business (Regulation) Act of 2010 and the Betting and Gaming Levy Act of 1988, without the full set of regulations needed for licensing and designated operational zones. Major casinos, including Bally’s, Bellagio, Casino Marina, and Stardust, continue to operate under provisional registrations granted in 2013.
CoPF has criticised the Finance Ministry for failing to implement the Authority in line with international standards and expressed concern over the 20-year licence granted to John Keells Holdings (JKH) and Melco Resorts & Entertainment for their City of Dreams integrated resort, which opened on 2 August 2025.
Criticism over lack of independence
Even after CoPF approval, experts have expressed concerns about the Authority’s independence. A Colombo-based think tank, Advocata Institute, said, “The independence of a regulatory body is non-negotiable. Without it, we risk creating a framework that lacks credibility, is vulnerable to political interference, and cannot deliver on its mandate. In its current form, the Bill does not create a regulator. This bill creates a proxy, not a regulator.”
The draft legislation grants the Minister of Finance the authority to appoint the Director General and board members, issue binding directives, and make regulations, raising questions about whether the Authority can function independently.
Regulatory gaps
Advocata has pointed out several problems with the bill. It does not cover online gambling, despite the sector’s rapid growth and associated risks. The Sri Lanka Tourism Development Authority has no representation, and state-run lottery boards are not included under the Authority’s oversight.
Revenue collection relies on self-reporting by casino operators, which experts argue is ineffective. “At present, the Inland Revenue Department (IRD) is responsible for revenue collection, and they go by what is self-reported by casino operators. They have no way of tracing these incomes,” said Sudaraka Ariyaratne, Research Consultant at Advocata.
The penalties for breaking the rules, such as operating without a licence, are lower than international standards. This could make it easier for major operators to ignore the regulations.
Government goals and taxes
The government has said the new framework will help boost tourism, attract foreign investment, and increase tax revenue. Finance Minister and President Anura Kumara Dissanayake has presented the bill as part of Sri Lanka’s efforts to recover from the 2022 financial crisis.
As part of the 2025 budget, the fee to enter casinos has been doubled from $50 to $100. Taxes on the money that gambling businesses make have also gone up from 15% to 18%. The new law aims to update Sri Lanka’s gambling rules, strengthen supervision, and build more public confidence in the industry.
Regional pressure
Sri Lanka’s gambling market, valued at $293.93 million in 2020, is expected to grow to $410.04 million by 2026. With the South Asian gaming market projected to exceed $7.5 billion by 2028, clear regulations are considered important to attract investment.
Advocata cautioned that while Sri Lanka is moving slowly, other countries are making progress. The think tank pointed out that countries like the UAE and Thailand, once seen as unlikely players in the gaming industry, are now moving fast to open their gambling markets. It warned that if Sri Lanka does not act quickly and set clear regulations, the country could miss out on important investment and tourism revenue to regional competitors.
Way forward
After receiving CoPF approval, the bill will move to Parliament. Experts have suggested changes to make the Authority more independent, including oversight of online gambling and improvements in revenue tracking.
Advocata previously stated that while the bill is important and necessary, it needs to be revised to form a genuinely independent, strong, and credible regulatory body. With the intention of drawing in investment, boosting tourism, fostering economic growth, and safeguarding the public interest, the bill is anticipated to establish a single framework for regulating casinos, online gambling, and lotteries once it is passed.
