Sri Lanka’s Gambling Regulatory Authority bill to reach Parliament soon
Sri Lanka’s new bill to regulate the gambling industry will soon be presented at the Parliament. The draft law proposes the creation of a Gambling Regulatory Authority (GRA), which will be responsible for overseeing all gambling activities in the country, including land-based casinos, online platforms, ship-based gambling, and offshore operations.
The bill was published in the Government Gazette following approval by the Cabinet of Ministers in April. It was issued under the direction of President Anura Kumara Dissanayake, who also serves as the Minister of Finance, Planning and Economic Development. The Attorney General approved the draft in April, after the Cabinet first cleared it in February 2025.
Once passed, the law will come into force as the Gambling Regulatory Authority Act. It will replace three outdated laws: the Horse Racing Betting Ordinance, the Gambling Ordinance, and the Casino Ordinance.
Powers and role of the authority
The new authority will be the only body in charge of regulating gambling in Sri Lanka. It will issue licences, collect taxes from gambling businesses, and take action against illegal gambling. It will also supervise gambling on ships and in Colombo Port City, a newly developed area in the capital.
The authority will have the power to inspect gambling places and check online sites for illegal gambling. Its main objective is to make sure gambling is done openly and responsibly, while also helping tourism and the economy grow.
Offences and penalties
The proposed law outlines several punishable offences. Conducting gambling without a valid licence could lead to a fine of up to 10 million Sri Lankan rupees (about US$33,000), up to two years in prison, or both.
Other offences include using false or misleading information to obtain a licence, advertising illegal gambling, operating on unregistered premises, using unapproved machines, financing or managing unlawful gambling, and gambling with underage persons. Each of these offences can result in a fine of 100,000 rupees (about $330), two years of imprisonment, or both.
Publishing or broadcasting false or misleading gambling advertisements is also prohibited. A fine of 10 million rupees can be imposed after conviction for violating any rules under the act.
Regulatory scope and safeguards
The Authority will also be responsible for preventing money laundering through gambling, reducing social harm, and protecting children from being exposed to gambling. It will ensure that gambling operations are carried out with proper supervision and follow all legal requirements.
The bill also makes it illegal to develop, distribute, or operate gambling software without a valid licence. Licences will also be needed for arranging travel, accommodation, or entertainment related to gambling. These rules will apply to ships registered in Sri Lanka as well as foreign vessels.
Structure of the GRA
The Gambling Regulatory Authority will be led by a board of management. This will include the Secretary to the Ministry of Finance, the Commissioner General of the Department of Inland Revenue, the Head of the Financial Intelligence Unit, and the Inspector General of Police, or their nominees. Three additional members with relevant qualifications will be appointed by the minister. Each board member will serve a three-year term.
Ongoing casino developments
The introduction of the bill comes as Sri Lanka continues to develop its casino and entertainment industry. City of Dreams Sri Lanka, a USD 1 billion project by John Keells Holdings and Melco Resorts, opened its first phase in Colombo in October. It includes 687 rooms, restaurants, ballrooms, and event venues.
The second phase is expected to open in the third quarter of 2025. It will include the 113-room Nuwa Hotel and casino gaming operations. Bluehaven Services, a subsidiary of Melco Resorts, holds a 20-year casino licence that began on 1 April 2024.
Changes to support regulation
In line with the new regulatory framework, the government has proposed changes to gambling taxes as part of the 2025 national budget. The casino entrance fee is set to increase from $50 to $100. The turnover tax on gambling businesses will also rise from 15 percent to 18 percent.
Once approved, the Gambling Regulatory Authority Act will create a single legal framework to regulate all gambling in Sri Lanka. It aims to bring the country’s laws in line with international standards, improve oversight, increase public trust, and ensure that gambling operations are conducted responsibly and legally.
