Sri Lanka is taking a significant step towards establishing a formal regulatory framework for its expanding gambling industry. The Sri Lankan cabinet has given its sign-off on a proposal to form a dedicated regulatory authority, a move that now sends the draft legislation to parliament for final approval.

The cabinet’s approval of a draft bill in February 2025 set the stage for the creation of a Gambling Regularisation Authority in the island nation. According to a notice published in the Government Gazette on April 21, 2025, this proposed authority is intended to “function as the sole independent regulator with a broad and overarching scope on operations” within Sri Lanka’s gambling sector. This extensive mandate is set to cover all forms of gambling, including online platforms, off-shore operations, sports betting, ship-based casinos, and land-based establishments. Minister Nalinda Jayatissa affirmed this scope, stating, as reported by iGaming Times, that the proposed authority will indeed be “the sole national regulator with a broad mandate.” The Attorney General has provided legal clearance for the cabinet bill, allowing its progression to parliament for consideration and potential enactment.

Mandate and Industry Context

The push for a dedicated regulatory body has been building, with entities such as the Sri Lanka Committee on Public Finance repeatedly calling for the formation of an authority to codify the rules governing the gaming industry and ensure stringent compliance. The proposed Gambling Regularisation Authority would be tasked with overseeing critical areas including licensing procedures, taxation frameworks, the implementation of anti-money laundering (AML) safeguards, and standardising measures aimed at addressing problem gambling. Member of Parliament Harsha de Silva has previously expressed particular concern, as reported by iGaming Times, that online gaming providers operating in the market may be currently circumventing their regulatory obligations.

The move towards comprehensive regulation comes as Sri Lanka’s gaming sector is poised for further growth. Currently, the land-based segment is primarily centred around the development of a single integrated resort (IR) within the Colombo Port City special economic zone. Melco Resorts & Entertainment is a key player in this development, having opened Phase 1 of its $1.2 billion integrated resort, City of Dreams Sri Lanka, in October 2024. The second phase of this project, which is set to include Sri Lanka’s first casino, is scheduled to open in the third quarter of 2025. Adding further momentum, the government granted Melco a 20-year gaming license last month, in March 2025.

The cabinet’s approval and the subsequent move of the bill to parliament represent a significant step towards bringing all facets of Sri Lanka’s gambling industry under a unified, independent regulatory body. The establishment of the Gambling Regularisation Authority is aimed at creating a more formalised and effectively overseen sector, intended to enhance regulatory compliance, ensure appropriate taxation, and strengthen measures for player protection as the industry continues to develop.