SRI LANKA IS MAKING A SIGNIFICANT MOVE TO FORMALIZE ITS EXPANDING GAMBLING INDUSTRY WITH THE RECENT CABINET APPROVAL OF A BILL TO ESTABLISH A DEDICATED REGULATORY AUTHORITY.

This decision, which now heads to parliament, reflects a timely response to a sector experiencing notable growth, as evidenced by substantial investments like Melco Resorts & Entertainment’s City of Dreams Sri Lanka.

The government aims to tap into the economic potential of this expansion by establishing clear rules for the industry, as a well-defined regulatory framework is crucial for creating a stable and attractive environment for further investment. 

As the Daily Financial Times reported, the Sri Lanka Committee on Public Finance has “repeatedly called for a dedicated authority to codify the rules around gaming and ensure compliance,” underscoring the goal of streamlining licensing and taxation to unlock significant revenue streams, particularly from land-based projects like the $1.2 billion resort in Colombo Port City.

To ensure comprehensive oversight, Cabinet Spokesperson Minister Nalinda Jayatissa emphasized that the proposed authority will be “the sole national regulator with a broad mandate,” overseeing everything from online betting to land-based casinos. This wide-ranging authority will be essential in addressing various facets of the industry, including social responsibility. As the gambling landscape evolves and becomes more accessible, the establishment of a regulator allows for the standardization of measures to mitigate the risks associated with problem gambling, ensuring that appropriate safeguards and resources are in place.

A key area requiring enhanced oversight is the online sector. MP Harsha de Silva “expressed special concern that online gaming providers may be skirting their obligations,” highlighting a specific challenge that the new regulator will need to address to ensure accountability across all platforms. Ultimately, Sri Lanka’s decision reflects a move towards responsible governance of a growing sector. By establishing a single, overarching regulator with a comprehensive mandate, the government aims to maximise economic benefits while effectively managing potential social and financial risks across the entire gambling landscape, both online and offline.