In response to the rapid expansion of the gambling industry in recent years and to fill regulatory gaps, the Sri Lankan government is accelerating the establishment of a new gambling regulatory body, named the "Gambling Regularization Authority." This move marks a critical step towards establishing a modern gambling governance system in the country.
It is reported that the proposal for the establishment of this agency has been approved by the cabinet, and the relevant legal draft has also been reviewed by the Attorney General's office. It is expected to be published in the government gazette soon and submitted to parliament for deliberation and approval. This legislation is seen as an important milestone in reshaping Sri Lanka's gambling industry structure.
The newly established Gambling Regularization Authority will take on the responsibility of uniformly managing all gambling activities nationwide, covering traditional land-based casinos, offshore gambling ships, gambling facilities within the special economic zone of Colombo Port City, and the increasingly popular online gambling platforms. The main duties of the agency include issuing and reviewing gambling licenses, formulating operational rules, promoting anti-money laundering and identity verification mechanisms, implementing betting limits, voluntary gambling prohibition mechanisms, and investigating illegal activities.
This decision was officially finalized in a cabinet meeting in February 2025, with the government hoping to address the legal and regulatory challenges brought about by cross-border and online gambling through the establishment of an institutionalized regulatory framework. Especially with the push of digital technology and mobile payments, gambling activities have rapidly extended into virtual spaces, making traditional regulatory methods inadequate.
Anura Kumara Dissanayake, the Minister of Finance, Planning, and Economic Development, stated that the new regulatory mechanism not only helps curb illegal gambling and mend long-standing institutional loopholes but also enhances Sri Lanka's attractiveness to the legal gambling industry, potentially driving tourism, employment, and foreign investment. He emphasized, "We hope to establish a safe, transparent, and orderly gambling environment."
Dr. Nalinda Jayatissa, a government spokesperson, further added that the formulation of this regulation not only responds to current market demands but also prepares for the future. "In the digital age, the modes and challenges of gambling have fundamentally changed, and the regulatory system must evolve accordingly."
Moreover, the proposed "Gambling Sports Regularisation Act" will serve as the core legal pillar of the new system. Once passed by parliament, this act will completely replace all current scattered gambling-related regulations, establishing a clear and unified legal framework to guide all types of gambling operators to operate legally.
This move by Sri Lanka reflects the trend towards standardized gambling industry regulation in several Asian countries, seeking a new balance between industry growth and social responsibility. From both the perspectives of legal construction and industry development, this gambling regulatory reform has profound implications.
