Sri Lanka Closer to Legalizing Online Gambling
Sri Lanka has taken a significant step toward the legalization and regulation of online gambling with the cabinet's recent approval of a draft bill to establish a new regulatory authority. The proposed Gambling Regularization Authority will oversee various forms of gambling activities, including online operations, gambling aboard ships, and so-called offshore casinos located in the Colombo Port City development zone.
LISTEN TO THIS ARTICLE:The bill, the Gambling Sports Regularization Act, was approved during a Monday cabinet meeting and now awaits further debate and a vote in the country's parliament. According to a statement released by the Department of Government Information, the new authority will be tasked with monitoring and supervising gambling-related activities throughout Sri Lanka.
Related: Sri Lanka Doubles Casino Entrance Fees in 2025 BudgetThe oversight includes both domestic and offshore gambling sectors, encompassing digital platforms, ship-based gaming, and operations within Colombo Port City. The creation of the authority aligns with broader government efforts to formalize and manage the gambling industry under a unified legal and administrative framework.
Cabinet spokesman Minister Nalinda Jayatissa confirmed that the authority's responsibilities would extend to onshore casinos as well. This marks a substantial shift in the country's regulatory approach, as existing casinos in Sri Lanka have traditionally been governed by gazetted regulations concerning licenses and entrance fees, but not by a comprehensive piece of legislation specifically designed for the industry.
The initiative to draft and propose the bill originated from President Anura Kumara Dissanayake/ He introduced the legislation in his dual role as Minister of Finance, Planning and Economic Development.
The initial framework of the law was approved by the cabinet in February, and it subsequently received clearance from the Attorney General's office. The proposal reflects the administration's broader fiscal and economic agenda, which includes attracting foreign investment and generating new revenue streams through a regulated gambling environment.
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Colombo Port City to Become International Hub
Colombo Port City, where some of the proposed gambling operations will be located, is a large-scale land reclamation project situated on the western fringe of Colombo. The area was developed with significant foreign investment, notably a $1.4 billion contribution from China Harbour Engineering Co Ltd. It is envisioned as a key hub for economic activity, including luxury real estate and entertainment facilities.
Among the most high-profile projects in the vicinity is the City of Dreams Sri Lanka, a $1 billion development spearheaded by John Keells Holdings Plc. The casino component of this complex will be managed by Melco Resorts & Entertainment. According to a March filing from Melco International Development Ltd, the parent company of Melco Resorts, operations at City of Dreams Sri Lanka are scheduled to begin in the third quarter of 2025 under a 20-year license that became effective on April 1, 2024.
The proposed regulation comes amid other recent government actions aimed at tightening oversight of the gambling industry. As part of its 2025 budget plan, the government has announced an increase in the entrance fee for casinos from $50 to $100 per person. Additionally, there are plans to raise the turnover tax applied to gaming establishments from 15% to 18%, further signaling the state's intent to derive greater fiscal benefits from gambling activities.
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