Sri Lanka (Commonwealth Union)_ Sri Lanka’s Parliament has enacted the Gambling Regulatory Authority (GRA) Bill, ushering in a new era for the country’s approach to gambling. The bill, which has undergone multiple changes, would establish a single regulating authority to monitor all types of gambling, including casinos, betting centers, and lotteries. Once the Speaker of Parliament officially approves the law, the Gambling Regulatory Authority Act will come into effect. It will replace obsolete regulations that formerly controlled betting, casino operations, and horse racing, placing all gambling activities under a single consolidated legal framework.
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The new Authority will be responsible for awarding licenses, collecting gambling-related income, monitoring operators, and enforcing laws designed to prevent illicit conduct. It will also guarantee that the sector is transparent and follows good governance. According to Deputy Economic Development Minister Anil Jayantha Fernando, one of the regulator’s key roles will be to help prevent money laundering linked to gaming operations. The bill’s passage follows its earlier approval by the Committee on Public Finance, which also recommended adding clauses to regulate foreign exchange tied to gambling. While the final vote supported the bill, several opposing MPs expressed worries about the weak measures to control online gambling. They warned of its potential social impact, particularly on vulnerable groups.
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One notable provision in the new law is a $50 entry fee for local residents who want to access casinos. Officials say the goal is to discourage excessive gambling among citizens. They also want to help Sri Lanka become a regional tourism destination, particularly for visitors from nearby India. Despite ongoing debate about the social and moral issues around gambling, many believe that regulating the industry works better than simply banning it. Countries like Singapore, for example, moved toward legalization and strict regulation in 2005 after years of trying to cut down on gambling through prohibition.
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A properly regulated gaming industry, supporters say, can reduce illegal activity, protect consumers, generate tax revenue, and contribute to tourism and job creation. This is especially relevant to Sri Lanka, which is still rebuilding its economy following the 2022 financial crisis. Sri Lanka’s gambling industry has operated in a legal gray area for decades, with no clear regulatory guidelines in place. That is beginning to change, especially with the recent opening of Melco’s City of Dreams Sri Lanka, a premium casino and entertainment complex in Colombo. The $1.2 billion project, which officially opened on August 2, is the largest private investment in the country’s history, introducing the integrated resort idea to the local market.
In light of these developments, lawmakers have emphasized the importance of creating regulations from the start. Critics of the legislation argue that if the new Authority is weak or poorly constituted, it might lead to corruption and rent-seeking, which is especially concerning for the current administration, which was elected on an anti-corruption platform. The new regulator will have a high-powered board made up of senior officials, including the Secretary to the Ministry of Finance, the Commissioner General of Inland Revenue, the head of the Financial Intelligence Unit, and the Inspector General of Police. In addition, the Finance Minister will appoint three independent members for three-year terms.
Currently operating casinos will be given a transition period to come into compliance with the new regulations. Authorities expect that with adequate monitoring, Sri Lanka can attract more responsible foreign investment while minimizing gambling-related damage. Additionally, the country’s gaming market, which was worth around $294 million in 2020, is expected to increase to more than $410 million by 2026. Supporters of the GRA argue that with the correct framework and enforcement, the new law may help transform gambling into a crucial pillar of economic recovery.
