Sri Lanka’s Government Launches a New Centralised Body to Regulate Gambling

New Supervisory Organisation’s Powers

As outlined in the document, a unified body called the Gambling Regulatory Authority (GRA) will be created in the country.

This entity will supervise all major niches of the industry, such as:

• digital platforms;
• sportsbooks’ services;
• offshore gambling portals;
• events held on maritime vessels and in Colombo’s Port City.

The law supersedes 2 outdated ordinances related to horse race betting and gaming, along with the 2010 Casino Business Act. The initiative was unanimously endorsed by Parliament earlier in August and was officially certified in September.

Lawmakers highlight that this reform aims to tackle several key challenges:

• reinforce anti-money laundering (AML) efforts;
• minimise social harms linked to gambling activities;
• support the state’s long-term tourism and economic goals;
• establish consistent industry standards for honest competition.

The supervisory body will guarantee that entertainment brands comply with global norms, including rigorous AML requirements. The GRA will possess extensive authority to monitor operations on land, online, and on ships at sea. Only lotteries and social gambling will be exempt from the new organisation’s jurisdiction.

The agency will also be responsible for licensing and tax regulation. This strategy aims to increase treasury income and improve protection against ludomania.

While the law took effect on December 1st, the GRA’s formation must be completed by June 30th, 2026.

Investments and Their Effect on the Sphere

The legislative system is evolving amid increasing interest from global stakeholders and the expanding entertainment infrastructure in the region. For example, in August, Melco, a major Asian gambling operator, launched City of Dreams, the state’s 1st integrated international-class resort. This $1.2 billion venue features 16,725 sq m of gaming floor space.

The project has the potential to be as significant for India as Macau is for China. Despite the successful opening of such a large land-based complex, authorities plan to limit industry growth and have already decided against issuing more licences.

Their main emphasis remains on regulation, believing that a strong legislative framework is essential to identify which niche activities support regional development and to set appropriate restrictions.

Expansion and Stricter Oversight: Financial Prospects

In 2026, Sri Lanka will go through the FATF audit, which is crucial to show improvements in security and enhanced controls, especially in high-risk areas. Having an effective and transparent regulatory body will send a positive signal, indicating the authorities’ dedication to fostering a stable and predictable environment for long-term investment.

Against this backdrop, the government has increased the tax burden: starting October 1st, the gambling levy rate rose by 3% to 18%. Additionally, the casino entrance fee for Sri Lankan citizens has doubled to $100.

Industry analysts predict that by 2026, the local entertainment sphere will generate $410 million in turnover, up from $240 million in 2020. The estimated CAGR through 2031 is 5.4%.

Gaminator’s specialists regularly monitor the situation in the most promising jurisdictions to equip operators with the necessary information to launch a successful, profitable gambling business.