Sri Lanka clears new draft bill to oversee gambling industry
Sri Lanka’s cabinet has approved a draft bill to establish a dedicated Gambling Regularisation Authority, aimed at bringing tighter oversight to the country’s gambling sector, including online platforms and offshore casinos.
The proposed legislation, named the ‘Gambling Sports Regularisation Act’, will now be submitted to parliament for approval, according to an official statement issued by the Department of Government Information following a cabinet meeting on 21 April 2025.
If passed, the authority will be tasked with monitoring all gambling-related activities in Sri Lanka, including onshore and offshore casinos, gambling on ships, and online betting platforms. Officials said the new body would address longstanding regulatory gaps in the sector, including areas such as Colombo Port City, where offshore casinos have drawn increasing interest.
Spotlight on land-based casinos
Speaking to local media, Cabinet spokesman Nalinda Jayatissa confirmed that the new regulator would also cover land-based casinos, which currently operate under gazetted rules but are not governed by a specific parliamentary act.
The bill was introduced by President Anura Kumara Dissanayake in his role as Minister of Finance, Planning and Economic Development. It had first received cabinet approval in February 2025, before being cleared by the country’s Attorney General.
Colombo Port City—a major land reclamation project on the western edge of the capital—has become a focal point for future gambling operations. The project’s primary developer, China Harbour Engineering Co Ltd, reportedly invested $1.4 billion (€1.3 billion) into the area.
Turnover tax, entrance fee raised
One of the key developments near the port zone is City of Dreams Sri Lanka, a luxury entertainment complex being built by John Keells Holdings Plc. The project, valued at $1 billion (€935 million), includes a large casino that will be operated by Melco Resorts & Entertainment Ltd.
The Hong Kong-listed parent company, Melco International Development Ltd, announced in March that the casino would operate under a 20-year licence granted from 1 April 2024, with an official launch expected in the third quarter of 2025.
In line with the new regulatory push, Sri Lanka’s government has also proposed doubling the entrance fee for casinos as part of its 2025 budget. The fee will rise from $50 (€47) to $100 (€93) per person.
Additionally, the government plans to increase the turnover tax on gaming establishments from 15 percent to 18 percent, signalling broader efforts to boost revenue and tighten control over the industry. Analysts say the new authority could help streamline gambling regulation in Sri Lanka while increasing state oversight and fiscal transparency.
