Sri Lanka moves to regulate the gambling industry
The Sri Lankan cabinet has officially approved the establishment of a new regulatory body designed to oversee the rapidly evolving gambling sector within the country. This critical step will soon be presented to parliament for final ratification. In a move signifying governmental commitment, cabinet members had previously agreed on a draft bill in February for the creation of the Gambling Regularisation Authority (GRA).
As outlined in a government notice released on April 21, the GRA will serve as Sri Lanka’s sole independent regulatory entity. Its mandate encompasses comprehensive oversight of all gambling activities, both online and offline, including offshore betting, shipboard casinos, and land-based operations. The *Daily Financial Times* notes that the Sri Lanka Committee on Public Finance has consistently recommended the formation of such an authority, underscoring the necessity of clarifying existing gaming laws and ensuring robust compliance mechanisms.
The newly formed regulator will be tasked with a variety of critical functions, including:
- Licensing: Delivering and managing licenses for operators within the sector.
- Taxation: Establishing a framework for the taxation of gambling activities.
- Anti-Money Laundering (AML) Protocols: Implementing stringent measures to combat money laundering.
- Problem Gambling Policies: Creating and enforcing policies to address and mitigate gambling-related issues.
However, concerns have been raised by MP Harsha de Silva regarding the potential for online gambling operators to evade their regulatory responsibilities. This highlights the ongoing challenges in establishing a fully compliant and regulated environment in the digital gambling landscape.
Currently, gambling operations in Sri Lanka are limited to a single integrated resort (IR) situated in Colombo Port City. Notably, in October, Melco Resorts & Entertainment unveiled the initial phase of its ambitious $1.2 billion City of Dreams Sri Lanka resort, located within the country’s designated special economic zone. With the second phase slated to introduce Sri Lanka’s inaugural casino, set to launch in the third quarter of 2025, the government has recently conferred a 20-year gaming license to Melco, signaling a promising future for the industry.
The establishment of the GRA is poised to create a more structured and responsible framework for gambling in Sri Lanka, fostering growth while ensuring that operators adhere to high standards. As the industry continues to expand, effective regulation will be crucial in safeguarding consumers and enhancing the integrity of the gambling sector.
