Sri Lanka to Form Gambling Regulatory Authority

Sri Lanka is taking bold steps to reform its gambling industry with a newly proposed regulatory authority.

Under the leadership of President Anura Kumara Dissanayake, the government has introduced a bill that aims to modernize the nation’s gaming laws. The draft proposes repealing decades-old betting ordinances and forming a centralized Gambling Regulatory Authority with sweeping powers.

This authority will bring transparency, tighten oversight, and boost revenue collection—while cracking down on illegal operations and financial malpractice.

Learn how this reform could redefine Sri Lanka’s gambling landscape, attract investment, and safeguard legal compliance.

Sri Lanka Launches Sweeping Gambling Reform: New Authority to Replace Outdated Casino Laws

3 Key Points

• New Authority Will Centralize Gambling Oversight. The bill introduces an independent regulator with full control over legal gambling, compliance, and revenue monitoring.
• Outdated Betting Laws to Be Repealed. The reform will replace laws from the colonial era—like the Horse Racing Betting Ordinance and Casino Ordinance.
• Improved Governance and Anti-Money Laundering Measures. The authority will address illicit gambling activity, ensuring integrity and transparency across the gaming sector.

Sri Lanka Moves to Modernize Gambling Regulation with Central Authority

In a landmark step toward modernizing its gaming legislation, Sri Lanka has drafted a bill to establish a centralized Gambling Regulatory Authority, signaling a major overhaul of the country’s fragmented and outdated betting laws.

The reform, initiated under the direction of President Anura Kumara Dissanayake, who also holds the post of Minister of Finance, aims to unify gambling oversight, improve compliance, and boost state revenues. The proposed bill has already been approved by the Cabinet as of 21 April 2025, and will soon be debated in Parliament.

Once passed, it will become law under the Gambling Regulatory Authority Act, repealing three key acts:

• Horse Racing Betting Ordinance
• Gambling Ordinance
• Casino Ordinance

These pieces of legislation, some over half a century old, no longer meet the operational or compliance needs of today’s gambling environment. Their repeal is a signal that Sri Lanka is ready to move toward 21st-century standards of regulatory governance.

Why This Reform Matters

The gambling industry in Sri Lanka—while historically limited—has grown increasingly complex, with expanding interest in online betting and international operators seeking market access. However, the legal framework has lagged behind, allowing unlicensed gambling and opaque revenue practices to flourish.

The new Gambling Regulatory Authority aims to fix that. It will be tasked with:

• Licensing and regulating all gambling and betting activities
• Monitoring operator compliance
• Implementing anti-money laundering (AML) measures
• Enforcing sanctions on illegal gambling operations
• Ensuring fair play and protecting consumer rights

The government believes that an empowered, standalone authority can better enforce rules, close legal loopholes, and increase transparency in revenue collection.

Economic and Social Impact

According to sources from The Island, the government expects that this regulatory shift will generate structured income and reduce financial leakage through illegal betting channels. The centralized system is also seen as a deterrent against criminal exploitation, such as money laundering and tax evasion, often associated with loosely regulated markets.

At the same time, stakeholders expect the authority to foster responsible gambling practices, aligning with global regulatory standards. The hope is that this legislation will pave the way for investment from reputable gaming companies that seek transparent legal frameworks in emerging markets.

A Step Toward Responsible and Transparent Gambling Governance

Sri Lanka’s proposed Gambling Regulatory Authority marks a critical turning point in the nation’s gambling policy. With outdated laws soon to be replaced, the country is positioning itself to streamline oversight, protect the public interest, and attract legitimate investment.

This reform isn’t just about regulation—it’s about restoring trust, improving financial governance, and ensuring that gaming activity contributes meaningfully to the country’s development. As Parliament prepares to debate the bill, industry watchers are keeping a close eye on how Sri Lanka’s legal gambling future will unfold.

If passed, the Gambling Regulatory Authority Act could become a model for emerging gaming jurisdictions across Asia.