In a significant move toward better regulation of the country’s gambling sector, the Sri Lankan government has introduced a proposal for the establishment of the Gambling Regularization Authority. This new body will be responsible for overseeing a wide range of gambling activities, including online platforms, offshore casinos, and betting activities aboard ships, particularly in Colombo Port City.

A comprehensive mandate for the new gambling authority:

According to Newsfirst, the proposal for this regulatory body was first presented at a Cabinet meeting on February 24, 2025, and has since gained clearance from the Attorney General. With this legal approval, the draft bill is now set to be published in the government gazette, which marks the beginning of the formal legislative process. The next step involves submitting the bill to Parliament for further consideration and approval.

The creation of the Gambling Regularization Authority aims to provide comprehensive oversight for the growing gambling industry in Sri Lanka. The authority’s remit will cover both onshore and offshore gambling, with particular attention to the activities taking place within Colombo Port City—a newly developed area situated on the western edge of the capital, Colombo. This area is home to a mix of large-scale infrastructure projects, including casinos, which fall under the jurisdiction of the proposed authority.

According to the official announcement, the authority will oversee the regulation of all gambling sports activities, including those based offshore on ships and within Colombo Port City. In addition to these, the authority will also monitor and regulate online gambling sports activities, ensuring a modern approach to the industry that aligns with current trends.

The need for responsible gambling practices:

The formation of the Gambling Regularization Authority is seen as a crucial step toward ensuring responsible gambling practices are maintained. With increasing concerns about unregulated betting, the new regulatory framework is intended to close loopholes that could allow for exploitation, while also responding to growing domestic demand for regulated gambling opportunities. Officials believe this authority will help create a safer environment for gambling, ensuring that practices align with international standards.

Speaking at a recent Cabinet briefing, Cabinet Spokesman Dr. Nalinda Jayatissa explained that the approval of the draft bill is part of Sri Lanka’s broader efforts to prepare the country’s gambling regulatory framework for future developments, particularly in the digital and cross-border gambling spheres.

The establishment of the Gambling Regularization Authority also comes at a time when Sri Lanka’s gambling sector is rapidly evolving. One key development is the planned opening of the City of Dreams Sri Lanka, a land-based casino being developed by Melco Resorts & Entertainment Ltd at a US$1-billion real estate site southeast of Colombo Port City. This casino, slated to open in the third quarter of 2025, is expected to become a major player in Sri Lanka’s growing gambling market.

Furthermore, as part of the government’s 2025 budget plan, several measures are being introduced to tighten regulation in the sector. These include an increase in the entrance fee at casinos, from US$50 to US$100 per person, and a rise in the turnover tax on gaming establishments, which will be increased from 15 percent to 18 percent.

While the proposal has already received support from Sri Lanka’s Cabinet, the draft bill must still undergo scrutiny in Parliament, where it will be debated and potentially amended. If approved, the Gambling Regularization Authority will assume a significant role in shaping the future of the gambling industry in Sri Lanka, with an eye toward sustainable growth, economic benefit, and regulation that aligns with global best practices.