Sri Lanka is Poised to Establish a New Gambling Regulatory Authority

About the Legislative Initiative

In February 2025, Sri Lanka’s ministers approved a proposal to establish a Gambling Regularisation Authority. According to the government’s statement dated April 21st, this newly formed organisation will serve as the island’s sole independent controller, granted comprehensive supervisory powers over the industry.

The regulatory body will oversee web and offshore niches, including:

• sports betting;
• ship-based gaming;
• land-based venues.

The draft bill has already been signed by the nation’s Attorney General, Parinda Ranasinghe Jr.

Expectations for Sri Lanka’s Regulated Market

Sri Lanka’s Committee on Public Finance has consistently advocated for the establishment of a dedicated gambling authority. The formal approval and signing of the corresponding document will address key legal challenges while paving the way for essential reforms.

The initiative will result in:

• standardised measures to mitigate gaming-related social issues;
• enhanced security and transparency within the island’s taxation system;
• greater effectiveness in combating fraud and money laundering;
• a unified monitoring framework for licensing operators and software providers.

This project aims to foster a regulated and responsible gaming environment while strengthening oversight mechanisms across the industry.

The RMG sector in the country is currently limited to a single integrated leisure complex, City of Dreams Sri Lanka, situated in the special economic zone of Colombo Port City. In October 2024, Melco Resorts & Entertainment secured approval to open a casino within the retreat centre.

The new gambling venue, backed by an estimated $1.2 billion investment, is poised to launch in the 3rd quarter of 2025. Its legal standing is reinforced by a government-issued 20-year certification granted to the Melco corporation earlier this year.