Sri Lanka moves to establish Gambling Regulatory Authority under new bill

Sri Lanka is moving to overhaul its decades-old gambling laws with a new bill gazetted by President Anura Kumara Dissanayake, aiming to establish a centralized Gambling Regulatory Authority that will serve as the primary watchdog for the country’s betting and gaming sector. 

The draft legislation, once enacted, will replace the existing patchwork of regulations with a single framework intended to improve oversight, enhance revenue collection, and clamp down on illegal gambling operations.

If enacted, the proposed law will repeal three longstanding ordinances that currently govern the sector: the Horse Racing Betting Ordinance, the Gambling Ordinance, and the Casino Ordinance. The most recent of these dates back to 2010, highlighting how long the legal structure for gambling in Sri Lanka has remained unchanged.

Currently, gambling in the country is permitted only in limited forms, primarily at designated casinos such as Bally’s in Colombo and on horse racing events like those held at the Royal Turf Club in Nuwara Eliya. It remains unclear whether the new bill would extend legalization to other popular forms of gambling, such as sports betting on cricket, or facilitate the establishment of new casinos.

What is clear, however, is that the Gambling Regulatory Authority would be tasked with overseeing all legal gambling activity, enforcing compliance among operators, and potentially addressing taxation and revenue generation mechanisms. The legislation aims to ensure transparency, strengthen good governance in the industry, and curtail illegal gambling operations that are often tied to organized crime.

The move aligns with President Dissanayake’s policy platform, which includes crackdowns on corruption and unregulated sectors. His government views the establishment of a unified regulator as a strategic tool for enhancing oversight and curbing offshore and illicit betting activity that targets Sri Lankan consumers.

The proposal was granted Cabinet approval in April, and now that it has been gazetted, the next step is parliamentary debate. With the ruling National People’s Power (NPP) party holding a commanding 159 seats in the 225-member legislature, the bill appears well-positioned to pass.

Sportradar CEO Carsten Koerl recently identified Sri Lanka as a market with “long-term opportunities” in a call with investors, highlighting the market's potential amid the incoming regulatory changes.