Sri Lanka is taking significant steps toward better regulating its expanding gambling sector, with the government moving forward with a draft bill that will establish an independent regulatory body. The Cabinet has given the green light for the Gambling Regularization Bill, which focuses on overseeing both onshore and offshore gambling activities, including those taking place in the Colombo Port City and aboard ships. This legislation also aims to bring online sports betting into the fold, reflecting the country's efforts to modernize its gambling regulations.
The proposal, presented by President Anura Kumara Dissanayake in his capacity as the Minister of Finance, Planning, and Economic Development, marks a pivotal moment in Sri Lanka's approach to gambling. It is designed to create the Gambling Regularization Authority, a new body that will oversee a wide range of betting activities in the country. This includes gambling activities located onshore, as well as those offshore, particularly in the Colombo Port City, a key area that is seeing significant development and investment. The authority’s oversight will extend to online sports betting as well, aligning with global trends in digital gambling.
A Step Toward Modern Gambling Regulation
The introduction of the Gambling Regularization Authority aims to ensure that the country can manage its growing gambling market responsibly. In a statement following the Cabinet meeting, Cabinet Spokesman Dr. Nalinda Jayatissa highlighted the broad mandate of the new authority, which will encompass everything from traditional onshore betting to more modern online gambling platforms. The inclusion of offshore gambling, especially activities linked to Colombo Port City, is expected to provide a more comprehensive framework to tackle the emerging sector.
This draft bill has already cleared legal hurdles, with the Attorney General granting it legal clearance. It is now ready to be formally published in the government gazette, allowing it to be debated and eventually passed by Parliament. Once it reaches Parliament, the bill will undergo further scrutiny, with lawmakers determining the final structure of the Gambling Regularization Authority. This marks a critical juncture in Sri Lanka’s regulatory landscape, especially as the government seeks to close any gaps that could allow for unregulated gambling activities to thrive.
Targeting Unregulated Betting and Ensuring Responsibility
The proposed legislation is seen as a necessary response to the rising demand for gambling in Sri Lanka, which includes both traditional casino games and sports betting. One of the primary goals of the new regulatory framework is to address growing concerns over unregulated betting, particularly in online and offshore markets. The Gambling Regularization Authority is tasked with ensuring that these activities are subject to proper oversight, helping to mitigate risks associated with unlicensed operators.
As part of the government's broader economic strategy, this bill is also a proactive measure to prepare Sri Lanka’s gambling regulations for future developments in digital and cross-border gambling. With global trends increasingly leaning toward online and offshore betting, Sri Lanka’s government is positioning itself to stay ahead of the curve by modernizing its approach to gambling regulation.
Colombo Port City: A Key Area for Regulation
A crucial aspect of this regulation is its focus on Colombo Port City, an ambitious land reclamation project situated on the western edge of Colombo. The area, which is being developed with significant foreign investment, will host a number of casinos and gaming establishments, making it a critical focus for the new Gambling Regularization Authority. The regulatory framework will not only encompass traditional casinos but also new developments in the Port City area, positioning it as a key part of Sri Lanka’s gambling future.
In line with this initiative, the government is also reviewing its tax and licensing policies for existing casinos. For instance, as part of the 2025 budget, the government has proposed an increase in entrance fees and a higher turnover tax for casinos. These measures are part of broader efforts to ensure that the gambling sector contributes more significantly to the country’s revenue, while simultaneously enforcing stricter regulations on gambling practices.
The Path Forward
While the bill has received Cabinet approval, it still has to undergo parliamentary debate and approval before it becomes law. This next stage will provide an opportunity for lawmakers to refine the bill and address any concerns before its final passage. However, the groundwork laid by the Cabinet’s endorsement and the Attorney General’s legal clearance marks a significant step in Sri Lanka’s ongoing efforts to regulate its gambling sector and ensure that it is both responsible and well-managed.
Source:
Sri Lanka Moves to Regulate Offshore and Online Gambling, english.newsfirst.lk, April 23, 2025.
