Sri Lanka Moves to Overhaul Gambling Laws with New Regulator

Sri Lanka is getting ready to hit the much-needed refresh button on its gambling laws with a new bill meant to establish a new Gambling Regulatory Authority. 

According to The Island, the draft legislation, that has received support from President Anura Kumara Dissanayake in his role as Minister of Finance, Planning and Economic Development, is  expected to bring more structure and oversight to the country’s gaming sector.

Decade-Old Laws, Out 

Provided the Parliament approves it, the bill will replace three outdated pieces of legislation. 

The list includes the Horse Racing Betting Ordinance, which is a decree aimed at “the taxing of betting on horse-racing, for the registration of race-courses, and for exempting taxable bets from the provisions of the gaming ordinance”, the Gambling Ordinance No. 17 of 1889, and the Casino Ordinance. 

Some of these laws date back several decades and are considered no longer fit for purpose in today’s digital and globalized gambling environment in the South Asian country.

According to a Cabinet statement following the approval of the draft on April 21, the Authority would work “as the sole independent regulator with a broad and overarching scope on operations in the gambling industry in Sri Lanka”.

This would include, added the statement, “online and offshore gambling activities on ships and in the Colombo Port City”, ensuring more accountability and curbing illegal operations while enhancing the volume of tax revenue from gambling activities. 

The Attorney General Cleared the Bill

In addition to streamlining regulations, the Authority would also be charged with enforcing compliance, encouraging good governance practices, and preventing money laundering and other financial crimes tied to unregulated gambling. 

Cabinet documents confirm the Attorney General has cleared the bill for submission, and it has already been gazetted ahead of parliamentary debate.

While regulatory reform is underway, major developments in the casino space are also progressing. 

Global casino operator Melco Resorts & Entertainment Ltd plans to open a new venue as part of the City of Dreams Sri Lanka project in Colombo. The casino is expected to launch in the third quarter of 2025.

Through its wholly-owned subsidiary Bluehaven Services (Private) Ltd, Melco has been granted a 20-year casino license effective from April 1, 2024. The company is currently working on injecting $125 million into the casino part of the $1 billion resort complex that is being spearheaded by Sri Lankan conglomerate John Keells Holdings Plc.