Sri Lanka is accelerating the legalization of the gambling industry. Recently, the draft of the "Gambling Regulatory Authority Act 2025" was officially submitted to the parliament, marking the establishment of a unified and institutionalized gambling regulatory framework in the country, comprehensively reforming the existing gambling system.
The bill proposes the establishment of the "National Gambling Regulatory Authority" as an independent regulatory body responsible for the approval, supervision, and policy formulation of national gambling activities, aiming to provide a clear legal basis for the development of the gambling industry, and enhance transparency and regulatory efficiency.
The most notable introduction in the draft is the "Junket intermediary mechanism." This system allows casinos to legally employ intermediary agencies to recruit high-net-worth overseas gamblers on a commission basis. This model has been widely used in markets such as Macau and Singapore, making Sri Lanka the first country in South Asia to propose this mechanism.
According to industry analysis, this move is to support the advancement of the large-scale gambling investment project "Dream Colombo." The project, jointly developed by Melco Resorts and John Keells Group, is scheduled to open in the third quarter of 2025 and is expected to become a landmark achievement in the liberalization of Sri Lanka's gambling industry.
The reform has also triggered social divisions. Supporters emphasize its economic benefits in attracting foreign investment, boosting tourism, and increasing employment, while opponents worry about the potential impact of gambling proliferation on local families and public order, leading to gambling addiction issues.
Currently, the bill is still pending parliamentary approval, and the details of its implementation have not yet been announced. However, it is evident that Sri Lanka is pushing the gambling industry upgrade with a more firm stance, potentially rising as a new force in the South Asian gambling market.
