On November 19, 2025, Sri Lanka officially confirmed that its new Gambling Regulatory Authority will begin operations on December 1. This marks a major milestone in the country’s effort to modernize and unify its gambling oversight, both online and offline.
The Gambling Regulatory Authority Act No. 17 of 2025 replaces three outdated laws and introduces a centralized body to regulate casinos, betting services, offshore gaming, and online platforms. The move is expected to improve compliance, reduce social risks, and boost investor confidence in Sri Lanka’s gaming sector.
New Gambling Regulator Targets Online Compliance
Government officials revealed that 60% to 70% of casino patrons now gamble online, while only 30% to 40% visit physical venues. Despite this shift, online gambling has remained outside the tax and registration framework. The new regulator aims to close this gap and introduce enforceable social responsibility codes for both land-based and remote operators.
Parliament unanimously passed the bill in August, and Speaker Dr. Jagath Wickramaratne certified it in September. The government has set June 30, 2026 as the deadline for fully operationalizing the Authority. This timeline aligns with Sri Lanka’s upcoming Financial Action Task Force (FATF) review, which will assess the country’s progress in anti-money laundering and counter-terrorism financing.
Boosting Tourism and Economic Growth
According to , the regulatory overhaul coincides with major investments in gaming infrastructure. In August, Melco Resorts opened the City of Dreams Sri Lanka, a $1.2 billion integrated resort. Analysts believe the new regulator will help position Sri Lanka as “India’s Macau,” attracting international tourists and gaming operators.
The 2025 budget also raises the betting and gaming levy to 18% and doubles the casino entry fee for Sri Lankan citizens to $100. These measures aim to promote transparency and curb illegal gambling practices while supporting the country’s broader economic goals.
