Sri Lanka’s New Gambling Regulator Set to Go Live in December

Sri Lanka has confirmed that its newly established Gambling Regulatory Authority (GRA) will commence full operations on 1 December, taking charge of oversight across the country’s gaming landscape.

The GRA has been designed with what officials describe as a “broad and overarching scope,” assuming responsibility for ship-based, land-based, and online gambling activities.

Lotteries and social gaming remain outside its remit. The authority will regulate licensing procedures, implement tax frameworks, manage revenue collection, and introduce uniform standards for safeguarding against gambling-related harm.

Deputy Minister of Economic Development Anil Jayantha Fernando noted that the body will introduce greater accountability to the casino sector. “The regulator will also ensure that casinos operate according to rules and concerns about money laundering,” he said.

The agency’s launch serves as a structural overhaul for the country’s gambling laws, effectively replacing the Betting on Horse-Racing Ordinance, the Gaming Ordinance, and the Casino Business Act of 2010.

A small number of land-based casinos currently operate in Colombo, Sri Lanka’s commercial hub. The sector experienced a major development in October 2024 with the opening of the $1.2bn City of Dreams Sri Lanka in the port city, a joint venture between John Keells Holdings and Melco Resorts and Entertainment. The integrated resort features a 16,725-square-metre gaming floor. Melco Chairman and CEO Lawrence Ho has expressed optimism about the market, suggesting Sri Lanka “can be to India what Macau is to China”.

Despite the high-profile debut, Fernando stressed that significant expansion of the country’s gaming market is not on the agenda. According to him, “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.”

The regulatory overhaul arrives alongside a revised tax regime. As of 1 October, the Betting and Gambling Levy rose from 15% to 18%, while the casino entry fee for Sri Lankan citizens doubled from $50 to $100.

Sri Lanka’s gaming industry is forecast to generate $410m by 2026, up from $240m recorded in 2020, with analysts anticipating a compound annual growth rate of 5.4% through 2031.

By fLEXI tEAM