Sri Lanka sets December rollout for new gambling regulator

Sri Lanka’s Gambling Regulatory Authority Act will take effect on December 1, creating a consolidated oversight system that investors, online operators and integrated resorts will enter at a time of rising online play and new tax requirements.

The law, certified in early September by Speaker Dr. Jagath Wickramaratne following its passage in Parliament in August, was formally scheduled for implementation through a gazette issued by President Anura Kumara Dissanayake on November 16.

The Act repeals the Betting on Horse-Racing Ordinance, the Gaming Ordinance and the Casino Business (Regulation) Act, placing all gambling-related regulation under a single body, the Gambling Regulatory Authority (GRA).

Government officials reported during recent discussions that between 60% and 70% of Sri Lankan casino users now play online, while 30% to 40% continue to visit physical casinos. Although six licenses have been issued for land-based casinos, online gambling operators remain unregistered and untaxed. The absence of an online tax collection mechanism was identified as one of the reasons for setting a relatively short timeline for establishing the regulator.

Parliament also recommended that the GRA be formally in place by June 30, 2026, to improve oversight of online and land-based operations. Sri Lanka is scheduled for a Financial Action Task Force (FATF) review next year on anti-money laundering and counter-terrorism financing compliance. Officials noted that the regulator would support efforts to address concerns raised during past evaluations.

Deputy Minister of Economic Development Dr. Anil Jayantha Fernando said the measure centers on regulation rather than sector expansion. “This does not mean that the Authority will issue additional licenses for casinos or gambling establishments. The focus is on regulation. That regulation will define which gambling activities are permitted, the restrictions that apply, and matters such as the revocation or cancellation of licences,” he said.

He added: “In simple terms, what this Act seeks to achieve is the regulation of gambling and all related activities under one law and through one independent authority.”

The GRA will oversee licensing, compliance, social responsibility codes and revenue collection for online, land-based, offshore and ship-based gaming, including operations within the Port City of Colombo. The regulator’s board will include the Secretary to the Ministry of Finance, the Commissioner General of Inland Revenue, the Head of the Financial Intelligence Unit, the Inspector General of Police or their representatives, and three appointed members serving three-year terms.

Existing operators—Bally’s, Bellagio, Casino Marina and Stardust—have been functioning under provisional registrations since 2013 and will transition to the GRA’s oversight. Dr. Fernando told Parliament that the regulator would help address concerns related to money laundering in casino operations.

New tax provisions introduced on October 1 increased the levy on gross gaming collections from 15% to 18%. The casino entry fee for Sri Lankan citizens doubled from $50 to $100 under the 2025 budget proposal.

Sri Lanka’s gambling sector was valued at $293.93 million in 2020 and is projected to reach $410.04 million by 2026. The market recorded heightened activity following the August 2 opening of City of Dreams Sri Lanka, a joint development by John Keells Holdings and Melco Resorts & Entertainment. JKH reported that the property came close to breaking even on EBITDA for the quarter ending September 30, supported by hotel occupancy, casino visitor volumes and events revenue.

The implementation of the Act comes days before SiGMA South Asia 2025, scheduled in Colombo from November 30 to December 2. The summit will gather operators, suppliers, affiliates and regulators at a time when Sri Lanka is putting in place unified oversight and updated tax rules for the country’s online and land-based gambling sectors.