Sri Lanka Confirms December Launch Date for New Gambling Regulator

The Gambling Regulatory Authority (GRA) will begin work on 1 December, marking a major structural shift in how Sri Lanka manages gaming. The body has been given a wide brief: licensing, taxation, revenue collection and the implementation of responsible gambling standards across the entire sector, excluding only lotteries and social games.

Deputy Minister of Economic Development Anil Jayantha Fernando said the new authority will also tighten oversight of compliance around financial crime. As he noted, “The regulator will also ensure that casinos operate according to rules and concerns about money laundering.”

By taking over these responsibilities, the GRA will replace three key laws that previously governed the market: the Betting on Horse Racing Ordinance, the Gaming Ordinance and the 2010 Casino Business Act.

Colombo remains the centre of Sri Lanka’s casino industry, hosting several land-based venues. The most prominent new addition is the $1.2 billion City of Dreams Sri Lanka, which opened in October 2024. Built by John Keells Holdings in partnership with Melco Resorts and Entertainment, it features a 16,725-square-metre gaming floor and represents the country’s largest integrated resort investment to date.

Melco Chairman and CEO Lawrence Ho previously described Sri Lanka’s potential role in the region, saying it “can be to India what Macau is to China.”

Despite the scale of such projects, the government is signalling caution. Officials are not planning to issue a wave of new licences.

“The focus is on regulation. That regulation will define which gambling activities are permitted, the restrictions that apply and matters such as the revocation or cancellation of licences,” Fernando said.

Updated Tax Framework

The regulatory changes come alongside a shift in the country’s gambling taxation model. As of 1 October, the Betting and Gambling Levy climbed from 15% to 18%. Local players will also pay more to enter casino floors — the fee for Sri Lankan citizens has doubled from $50 to $100.

Even with tighter rules and higher taxes, the sector is expected to continue growing. Industry projections indicate gaming revenue could reach $410 million by 2026, up from $240 million in 2020. Analysts estimate a compound annual growth rate of 5.4% through 2031.