The Sri Lankan government is establishing a new gambling regulatory authority by June 2026

The Sri Lankan government has announced its intention to complete the formation of a new gambling regulatory authority by June 30 next year. This information was presented to the Parliament's Public Finance Committee, as reported by several leading media outlets.

This decision follows the passage of the Gambling Regulatory Authority Act last August, which established the legal basis for the creation of a specialized agency.

Powers and Tasks of the New Authority

According to the Act, the Gambling Regulatory Authority will be vested with broad functions and responsibilities. Its key objectives include:

• collecting government revenues related to gambling establishments;
• ensuring transparency and accountability in the gambling industry;
• combatting illegal gambling operations;
• standardizing bookmakers and casinos in line with international standards.

The creation of such an authority will allow the government to systematize oversight of the rapidly growing gambling sector, both offline and online.

The Rise of Online Gambling

According to a survey presented to the Parliamentary Public Finance Committee on October 10, approximately 30-40% of gamblers visit traditional land-based casinos, while the majority prefer online platforms.

This fact has become a topic of discussion among legislators, who emphasized the need to introduce a clear regulatory framework for online gambling. This will allow for the effective collection of taxes on online gaming and ensure the protection of user rights.

Investing in the Gambling Industry: The Opening of City of Dreams Sri Lanka

August of this year marked a significant event for the country's tourism and gaming industries—the opening of the first integrated international resort and casino, City of Dreams Sri Lanka.

The project, implemented with the participation of major international operator Melco Resorts and Entertainment Ltd., is located in the capital, Colombo. The opening of this facility demonstrates Sri Lanka's commitment to attracting investment and developing its entertainment industry to international standards.

Tax Increases and Market Regulation

In September, the government approved the 2025 budget, which includes an increase in the tax on betting and gambling from 15% to 18% and a doubling of casino entry fees for residents, from $50 to $100.

These measures are aimed at increasing budget revenues and strengthening oversight of the gaming industry, which is increasingly growing amid the growth of online gambling.

Focusing on Transparency and Market Development

The creation of a new regulatory body will be an important step toward establishing a transparent and responsible gaming sector in Sri Lanka. Authorities strive to balance the state's economic interests with the safety and interests of players, emphasizing international governance standards.

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