Sri Lanka has moved to formally regulate its gambling industry, with a bill tabled in Parliament to establish a Gambling Regulatory Authority ahead of the country’s first international casino launch later this year.
The proposed Gambling Regulatory Authority Bill will create a dedicated agency tasked with overseeing and licensing both physical and online gambling operations in Sri Lanka.
The move comes as Melco Resorts & Entertainment Ltd. prepares to open its casino at City of Dreams Sri Lanka – South Asia’s first integrated resort project – in August.
Presenting the bill to Parliament, former Deputy Minister of Finance and Planning Harshana Suriyapperuma said the legislation was long overdue.
“This has been promised for years, but the current administration has finally delivered,” he told lawmakers, noting that the bill had been drafted after examining regulatory frameworks in Singapore and other jurisdictions.
The new authority will also regulate junket operators, who bring high-stakes gamblers into casinos in exchange for a share of profits – a practice common in major international gaming destinations.
The proposed law will repeal outdated legislation, including the Betting on Horse-Racing Ordinance, Gaming Ordinance, and Casino Business (Regulation) Act No.17 of 2010, replacing them with a modern regulatory framework.
It will apply to all forms of gambling except State-run lotteries and social gambling, with a focus on promoting responsible gambling, preventing illegal activity, and ensuring the collection of Government revenue.
The authority will have wide-ranging powers, including issuing, renewing, suspending, and cancelling licences, registering gambling premises, and monitoring anti-money laundering and tax compliance measures.
A public rating system for licensed gambling operators will also be introduced to enhance transparency and accountability in the industry.
Sri Lanka has hosted several domestic casinos for years under varying local regulations, but has lacked a centralised national regulator. The impending arrival of Melco’s casino at City of Dreams Sri Lanka is expected to be a turning point for the country’s tourism and leisure sector.
In anticipation, the Government lifted import restrictions on gaming equipment to facilitate casino operations in May. Certain sports equipment for tourist resorts have also been cleared for import under the revised guidelines, Suriyapperuma confirmed.
The Gambling Regulatory Authority Act will take effect via a gazette notification once Parliament passes the bill. Its introductory provisions will come into force immediately upon enactment.