Sri Lanka Accepts Draft Bill to Regulate Gambling Sector

On April 21, Sri Lanka’s cabinet gave the green light to a draft bill aimed at creating a dedicated Gambling Regulation Authority, marking a step closer to creating a regulatory framework for the country’s gambling industry.

Sri Lanka Is One Step Closer to Creating Governing Body Overseeing the Gambling Industry 

According to an official statement from the Department of Government Information following the 21 April 2025 cabinet meeting, the proposed legislation, titled the “Gambling Sports Regularisation Act,” will now be presented to parliament for approval. If it passes, the new authority will be responsible for overseeing all gambling-related activities in Sri Lanka.

Subject to regulation will be land-based and offshore casinos, gambling aboard ships, and online betting platforms. Officials noted that the establishment of this body aims to close longstanding regulatory loopholes, particularly in areas like Colombo Port City, which has seen growing interest in offshore casino operations.

The bill’s draft comes at a crucial time for the gambling sector in Sri Lanka. The legislative move stems from a Cabinet decision made in February 2025 to develop measures that strengthen oversight of a gambling sector experiencing growth across onshore, offshore, and especially online platforms. Just last month, Melco, a large Hong Kong-listed company, obtained a license to run a gaming venue in the country over the next 20 years, highlighting the growing gambling industry in Sri Lanka.

What Will the New Governing Body Do?

The new authority is anticipated to promote responsible gambling and tackle increasing concerns related to unregulated betting. By bringing offshore and online gambling under its jurisdiction, the government aims to align with current industry trends and eliminate regulatory loopholes that could be exploited.

According to officials, the legislation responds not only to growing domestic interest but also seeks to modernize Sri Lanka’s regulatory framework in anticipation of future developments, especially in digital and cross-border gambling.

This initiative is part of a wider policy agenda spearheaded by President Ranil Wickremesinghe, in his role as Minister of Finance, Planning, and Economic Development. It aims to consolidate existing gambling activities under a cohesive legal structure.

If it passes, the Gambling Sports Regularization Act will update or replace several outdated laws and introduce regulatory guidelines for both local and international operators that target the Sri Lankan market.