Sri Lanka is preparing for a major regulatory shift as the Gambling Regulatory Authority Act, No. 17 of 2025, officially takes effect on 1 December. The move follows a gazette issued by President Anura Kumara Dissanayake on 16 November and marks the transition toward a single, nationwide framework for overseeing all forms of gambling activity.
The legislation completed its journey through Parliament in August, when lawmakers passed the bill unanimously before it received certification from Speaker Dr. Jagath Wickramaratne on 3 September. According to the gazetted declaration, the provisions of the Act “shall come into operation” on 1 December 2025. The Morning also confirmed that President Dissanayake issued the required Gazette notification for the law to take effect, reiterating the government’s decision to shift toward a consolidated regulatory model.
Creation of a Single National Regulator
The Act establishes the Gambling Regulatory Authority (GRA), which becomes the country’s independent regulator for casinos, online gambling, offshore gaming, betting operations, and gaming conducted onboard ships or within the Port City of Colombo. Under the new framework, the Authority will take over responsibilities previously divided across multiple laws. Three older statutes—the Betting on Horse-Racing Ordinance, the Gaming Ordinance, and the Casino Business (Regulation) Act of 2010—will be repealed once the new regime is in force.
Deputy Minister of Economic Development Dr. Anil Jayantha Fernando, speaking earlier this year, clarified that the government’s focus is strictly regulatory. “This does not mean that the Authority will issue additional licenses for casinos or gambling establishments. The focus is on regulation. That regulation will define which gambling activities are permitted, the restrictions that apply, and matters such as the revocation or cancellation of licences,” he said. He added that the Act aims to assess risks and mitigate the potential negative impacts of gambling. “In simple terms, what this Act seeks to achieve is the regulation of gambling and all related activities under one law and through one independent authority,” Dr. Fernando noted.
Lawmakers emphasized during debate that the Authority will strengthen compliance, improve oversight of financial risks, and reinforce anti-money-laundering safeguards. Dr. Fernando also stressed that casinos must operate according to rules designed to address concerns about money laundering. Existing casino operators—including Bally’s, Bellagio, Casino Marina and Stardust—will now be supervised under the GRA after years of operating through provisional registrations.
Reshaping the Sector Through Governance and Tax Changes
The regulatory overhaul coincides with adjustments to gambling taxes introduced on 1 October 2025. The amended Betting and Gambling Levy increases the levy on gross collections for gaming operators from 15 percent to 18 percent, while the casino entry fee for Sri Lankan citizens rises from US$50 to US$100. These fiscal changes accompany a period of renewed investment interest, influenced by the August opening of City of Dreams Sri Lanka, the country’s first international integrated resort developed by John Keells Holdings and Melco Resorts & Entertainment.
The Act’s implementation represents a wider effort to unify governance at a time when Sri Lanka aims to strengthen its gaming tourism footprint. Authorities have highlighted that the GRA will issue legally enforceable social responsibility codes and apply consistent standards to both land-based and online activities. With the sector valued at US$293.93 million in 2020 and forecast to reach US$410.04 million by 2026, policymakers view the new regulator as central to ensuring transparency and long-term stability.
As the law takes effect, Sri Lanka enters a new regulatory era and continues exploring its growth potential within the regional gaming landscape, with some industry observers suggesting it could emerge as “India’s Macau” under sustained regulatory clarity and responsible market development.
Sources:
Gambling Regulatory Authority Act to take effect, themorning.lk, November 18, 2025.
