Sri Lanka Sets Stage for New Gambling Rules in December

A New Regulator Takes Control

Sri Lanka is getting ready for a major shift as the Gambling Regulatory Authority Act, No. 17 of 2025, becomes active. The law creates a single body that will watch casinos, online games, offshore gaming, and betting tied to ships and the Port City of Colombo. Officials say this new setup may bring order to a sector that often moved under mixed rules.

The Act wipes out three older laws that guided gaming for many years. These laws once covered horse racing, gaming halls, and casino rules — yet they no longer fit the size of today’s market. Current operators will need to move under the new system, a change that could test their ability to adjust at pace. 

Lawmakers Seek Stronger Standards

Parliament passed the bill in August after review by the Public Finance Committee. Lawmakers said they want one set of standards and better checks on business conduct. The plan includes tighter control on money flows, closer tracking of social risk, and a simpler licensing path. They believe these steps may help build public trust and support long-term tourism.

The timing appears important. Sri Lanka is again drawing interest from global gaming groups. In August, Melco opened its $1.2 billion City of Dreams Sri Lanka — the largest private investment in the sector so far. Industry analysts said the country hopes to act as a regional draw that could attract users from nearby markets. Clear rules — they added — are central to that goal.

Wider Powers and Clearer Rules

A notable change stands out — the new Authority can issue social responsibility codes for land sites and online games. This gives it more room to watch new trends and react before problems grow. The wider powers — still untested — may guide how companies plan future projects.

The new law aims to cut confusion. For years, operators followed rules that overlapped or lacked modern tools. The new system sets one referee and one rulebook, which could reduce delays and ease disputes. 

Why This Move Matters

A few points explain the change:

• Older rules no longer fit the market.

• Investors asked for stable oversight.

• Online activity grew past existing limits.

• Public concern over risk increased.

Sri Lanka now enters a key phase. The Authority’s early actions will likely set the tone for years — a test that may decide how steady and safe the gaming sector becomes in the future.