Sri Lanka Forms New Gambling Regulatory Authority

Sri Lanka’s Cabinet of Ministers has approved the arrival of the new watchdog, with the Gambling Regulatory Authority, now in charge of the industry, revenue collection, and the overall course of gambling development in the country.

The ministers voted on a bill that was submitted by the country’s President, Ranil Wickremesinghe, earlier this week, with the bill focusing on not just the creation of a new regulator, but also establishing the rules that would govern the gambling industry in the country moving forward.

There are several key factors as part of the bill, including the establishment of the appropriate regulator. Then again, the would-be law wants to also see a fully hammered-out framework built around gambling that not only covers taxes but curtails illegal activities and works on minimizing gambling-related harm.

Sri Lanka Determined to Regulate Gambling Industry

Some of the details of the bill are still a moving target, such as how long an entity that qualifies for a license would receive the permit. According to some reports, that could be up to 20 years for each license. The rate of taxation is now set at 40% of all profits on casinos, and an initial licensing fee of $1.3 million has been floated.

These changes would affect all five casinos currently operating in the country, but Sri Lanka is also hoping to attract more projects. The latest casino in the country is the Lotus Tower. The establishment of a new gambling regulator – which is in fact the first such body in the country – has long been in the works.

The country broached debates as early as last year when various lawmakers pitched the idea of setting up a dedicated watchdog for the industry. Last year, the country decided to issue licenses to all of its then-four casinos in order to collect unpaid taxes, and it succeeded.