Key Moments:
- A nationwide Gambling Regulatory Authority has been established to oversee all gambling activities in Sri Lanka.
- Certified on 3 September 2025, the Act unifies all prior gambling laws into a single framework.
- Entry fees for Sri Lankan residents at casinos doubled to $100, and taxes on gross gambling revenues increased from 15 percent to 18 percent.
New Regulatory Framework
Now, a single authority oversees all gaming and gambling in Sri Lanka. This step follows the Gambling Regulatory Authority Act’s enactment and shows the government’s push to streamline and enforce discipline. Importantly, the initiative focuses on regulation rather than expanding licensed operations.
The bill to establish the Gambling Regulatory Authority has received the approval of the Committee on Public Finance – Communications Department, Sri Lanka Parliament
— Sri Lanka Tweet 🇱🇰 (@SriLankaTweet) August 14, 2025
Powers and Responsibilities of the Gambling Regulatory Authority
The new Gambling Regulatory Authority (GRA) decides which activities are legal, sets restrictions, and can revoke licenses. Enforcement of compliance, revenue collection, and social responsibility rules are among its central duties. Existing casino operators, such as Bally’s, Bellagio, Casino Marina, and Stardust, which have held provisional registrations since 2013, will now fall directly under the GRA’s oversight.
Financial oversight will be enhanced, and concerns around money laundering will be addressed, as stated by Dr. Anil Jayantha Fernando, Deputy Minister of Economic Development. Dr. Fernando emphasized that the GRA does not aim to issue additional casino or gambling licenses and instead focuses solely on regulation.
Legislative Overhaul
The Gambling Regulatory Authority Act, certified on 3 September 2025 by Speaker Dr. Jagath Wickramaratne, consolidates all prior gambling-related statutes into one framework. This new Act repeals the Betting on Horse-Racing Ordinance, the Gaming Ordinance, and the Casino Business (Regulation) Act. The GRA’s charter mandates it to consider the social, cultural, and economic impacts of gambling nationwide.
Governance Structure
The GRA board will include top state officials such as the Finance Secretary, Tax Commissioner, FIU Head, and Police Chief or their delegates. Additionally, the Finance Minister will appoint three members for three-year terms.
Fiscal Measures and Market Impact
In conjunction with regulatory reforms, Sri Lanka’s 2025 budget introduces notable fiscal measures. Entry fees for local residents to casinos have been raised from $50 to $100, and gross gambling revenue taxes have increased from 15 percent to 18 percent. The GRA will be responsible for enforcing these new regulations.
| Measure | Previous Value | Current Value |
|---|---|---|
| Casino Entry Fee for Sri Lankans | $50 | $100 |
| Gross Gambling Revenue Tax | 15% | 18% |
Industry Landscape and Economic Outlook
Sri Lanka’s gambling market was valued at $293.93 million in 2020 and may reach $410.04 million by 2026. Meanwhile, neighbors like the UAE and Thailand are ramping up regulated gambling. Thus, Sri Lanka’s new regime arrives as a timely response. Furthermore, the launch of City of Dreams Sri Lanka, the first international integrated resort, has raised focus on governance.
Recent parliamentary debates revealed concerns over online gambling, particularly its potential for digital addiction. The Committee on Public Finance has meanwhile cleared updated foreign exchange regulations pertaining to gambling-related economic activity.
Forward Outlook
The creation of the GRA marks a significant legal and structural step to strengthen oversight and consolidate Sri Lanka’s fragmented gambling laws. Authorities aim to balance the promise of economic growth with essential social safeguards, asserting that the GRA’s principal mission is regulation – not market expansion.
Upcoming Industry Event
Colombo is getting ready to host South Asia’s leading iGaming summit. Over 5,000 delegates are expected at SiGMA South Asia from 30 November to 2 December 2025, presenting an opportunity to network and engage in a market undergoing substantial change.
- Author
Daniel Williams
