The Sri Lankan government is actively promoting the modernization of the gambling regulatory system, planning to establish the "National Gambling Regulatory Authority" through a new bill to integrate existing laws, strengthen governance, and curb illegal activities. According to the Island newspaper, the bill has been drafted, marking a key step for Sri Lanka in rectifying the gambling industry and enhancing regulatory efficiency.
The new agency will operate as an independent regulatory entity with extensive authority, specifically responsible for supervising national legal gambling activities, implementing compliance management, and enhancing industry transparency. The draft is led by President and Minister of Finance, Planning, and Economic Development Anura Kumara Dissanayake, intending to thoroughly reform the current situation where gambling is managed by multiple old laws.
If the bill is approved by the parliament, three existing laws—the Horse Racing Betting Ordinance, the Gambling Ordinance, and the Casino Ordinance—will be repealed. These laws, dating back decades, are no longer able to meet the actual and technological development needs of the current gambling market. The new bill is expected to officially take effect as the "Gambling Regulatory Authority Act."
The cabinet has approved the new regulatory framework on April 21, 2025, paving the way for the formal submission of the bill to parliament. The government emphasizes that the purpose of establishing the National Gambling Regulatory Authority is to address issues such as fragmented industry regulation, rampant illegal operations, and tax revenue loss, while also enhancing law enforcement capabilities and transparency related to gambling economic activities.
The new regulatory authority is expected to be responsible for monitoring various forms of gambling including physical casinos, sports betting, and online gambling, and introducing modern compliance measures, requiring licensed operators to fulfill legal obligations, pay taxes, and report suspicious transactions. The government also states that this move will help regulate the sources of gambling revenue, prevent money laundering and abuse issues, and further enhance investors' and the public's trust in the gambling industry.
As the Sri Lankan gambling market gradually expands, external concerns about the lack of regulation and legal gray areas are increasing. This legislative reform pushed by the government is seen as a strategic step to improve the governance structure of the industry, guide the development of legal gambling, and potentially become a new source of fiscal revenue for the country.
