Sri Lanka has taken its first legislative steps toward transforming its gambling landscape with the gazetting of a draft bill to establish an independent Gambling Regulatory Authority. Spearheaded by President Anura Kumara Dissanayake, who also holds the position of Minister of Finance, Planning and Economic Development, the initiative reflects a broader government strategy to modernize regulatory oversight and improve governance within the gambling industry.
According to multiple official statements, the draft bill has been cleared by the attorney general and approved by the Cabinet during its session on April 21. The proposed legislation is now set to be presented before Parliament, where it will be open to debate and possible revision before being passed into law. If enacted, the legislation will be known as the Gambling Regulatory Authority Act.
New Body to Replace Outdated Gambling Laws and Strengthen Oversight
At the heart of the proposal is the dissolution of three longstanding laws: the Horse Racing Betting Ordinance, the Gambling Ordinance, and the Casino Ordinance. These laws, some dating back to the colonial era, are widely regarded as outdated and insufficient to address the complexity of modern gambling, especially with the rise of digital platforms and illegal operations.
The new Authority is intended to function independently, free from direct political interference, and will carry a wide-ranging mandate. Among its responsibilities will be licensing operators, enforcing compliance, collecting tax revenues from gambling businesses, and cracking down on unlawful activities. The Authority will also be empowered to introduce updated frameworks for auditing, licensing, and revoking permissions where necessary.
As stated in the gazetted draft and government releases, the Authority’s remit will span all types of gambling, including land-based casinos, online betting platforms, and even offshore gambling activities such as those in Colombo Port City or on cruise ships. It will serve as the sole regulator, consolidating the fragmented system into a centralized structure focused on transparency, integrity, and fiscal discipline.
Reform Aligned with Broader Economic and Governance Goals
The introduction of this legislation is part of Sri Lanka’s wider effort to enhance public sector accountability and improve revenue collection. Officials have underscored that the reform is not merely regulatory but strategic, aiming to close loopholes exploited by unregulated operators and to discourage financial misconduct such as money laundering.
“The Gambling Regulatory Authority is to function as the sole independent regulator with a broad and overarching scope on operations in the gambling industry in Sri Lanka, including online and off‑shore gambling activities on ships and in the Colombo Port City,” according to a government statement.
A key focus of the new Authority will be curbing illegal gambling by strengthening enforcement capabilities and ensuring that operators fulfill their tax and legal obligations. These efforts are expected to improve investor confidence and contribute to economic stability, especially as Sri Lanka prepares for major investments in the casino sector.
One such investment is the upcoming launch of the City of Dreams Sri Lanka, backed by global gaming company Melco Resorts & Entertainment Ltd. The US$1 billion resort, developed by John Keells Holdings, is expected to open in the third quarter of 2025. Melco has received a 20-year casino license for its Bluehaven Services subsidiary, effective from April 1, 2024, and has committed US$125 million to the casino portion of the project.
If passed, the Gambling Regulatory Authority Act will provide the legal structure necessary to ensure these large-scale projects—and all gambling activity across the country—are conducted under consistent rules and thorough oversight.
Source:
Draft Bill gazetted to establish Gambling Regulatory Authority, Lanka Xpress, May 30, 2024
