Sri Lanka one step closer to forming gaming regulator
The Sri Lankan cabinet has taken a significant step towards establishing a robust regulatory framework for the burgeoning gaming industry, as it has approved the formation of a dedicated regulator, which will soon be presented to parliament for final approval.
In February, the cabinet gave its nod to a draft bill aimed at creating the Gambling Regulation Authority, a pivotal move for the island nation’s gaming landscape.
According to a notice published in the Government Gazette on April 21, this authority will operate as the sole independent regulator, encompassing a comprehensive mandate over all gambling activities in Sri Lanka. This includes the regulation of online and offshore gambling, sports betting, ship-based gambling, and land-based operations.
Minister Nalinda Jayatissa emphasized that this proposed authority is designed to be “the sole national regulator with a broad mandate,” a statement reflecting the cabinet’s commitment to a structured gaming environment.
The cabinet bill has received the endorsement of the Attorney General and is now set to progress to parliamentary discussion.
Sri Lanka’s Gaming Industry on the Rise
As reported by the Daily Financial Times, the Sri Lanka Committee on Public Finance has consistently advocated for the establishment of a specialized regulatory body to delineate gaming laws and ensure adherence to compliance standards.
The Gambling Regulation Authority will be tasked with overseeing licensing procedures, implementing taxation frameworks, and enforcing anti-money laundering (AML) measures. Additionally, it will standardize protocols to tackle problem gambling, addressing the pressing need for responsible gaming practices. MP Harsha de Silva has raised concerns regarding potential non-compliance by online gaming providers, underscoring the necessity for rigorous oversight in this rapidly evolving industry.
Currently, the land-based gambling sector faces notable restrictions, with operations primarily concentrated in the sole integrated resort (IR) located at Colombo Port City. Last October, Melco Resorts & Entertainment launched Phase 1 of its ambitious $1.2 billion (£901 million/€1 billion) IR, the City of Dreams Sri Lanka, situated in the city’s special economic zone.
Phase 2 is eagerly anticipated, with plans to introduce Sri Lanka’s first casino, expected to open in the third quarter of 2025. Recently, the government has also granted Melco a significant 20-year gaming license, signaling a potential renaissance for land-based gaming operations.
Conclusion
The establishment of a regulatory authority marks a vital turning point for Sri Lanka’s gaming sector, aligning it with global best practices while ensuring a safe, compliant, and responsible gambling environment. As the regulatory framework solidifies, stakeholders within the industry and the general public alike can look forward to a more transparent and secure gaming landscape.
