14 February, 2025

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Sri Lankan government drafts new amendments to the Gambling Act

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Government officials are expressing concern as the number of illegal online casinos and betting shops in the country is growing exponentially. At a meeting of the Public Finance Committee, innovations were proposed that would tighten the regulation of the gambling industry. During the event, a letter was written to the Minister of Finance to take immediate action. 

Major issues

Now, Sri Lanka does not have a full-fledged regulatory framework for the regulation of casinos. This problem was recognized not only by the organizers of the meeting but also by the representatives of the Ministry of Finance. 

Spheres of online gambling and betting are also in the zone of attention of the government, but it is much more challenging to track and block unreliable online gambling operators. At the moment, players can only use review sites. Such resources explain how to choose a gambling operator with a good reputation and register on its site correctly. Search queries show that citizens of Sri Lanka mostly prefer to play at Melbet. Players choose this bookmaker because if you go through Melbet registration online, you can get an exclusive account opening bonus. However, the presence of sites with ratings and reviews of online casinos does not solve the sphere regulation issue but directs players to trusted brands.

To improve the situation, a separate regulatory body for the gambling industry was needed. The process of adopting new amendments to the law, on the basis of which the new regulatory body will work, must be speeded up. This urgent need arises due to the continuously growing market. A prime example is the dramatic development of the industry in Africa. 

This will attract additional foreign investment to the country, as legal gaming operators can rely on a full-fledged legal framework for their operations. The Casino Regulation Act is now failing to fulfill its objectives and requires a complete overhaul. 

New Gambling Regulatory Authority

Sri Lanka’s Cabinet approved a project to establish a new regulatory body as early as its last meeting. It will be responsible for:

  • overseeing the country’s gambling industry,
  • issuing licenses,
  • organizing various inspections,
  • ensuring the proper collection of tax revenues.

The main purpose of this body should not be to collect taxes but to introduce regulations and amendments to the law, which will allow it to fight more effectively against illegal gambling companies, which are now causing serious damage to the country’s economy. 

Under the new rules, casino licenses will be issued in a simplified format. The license will be valid for 20 years. Gambling establishment owners will have to pay a 40% income tax and an annual license fee of $1.3 million. 

The issue with online gambling remains open, but the authorities assure that the relevant bill is already in development. Its action will allow better control of gambling operators and monitoring of the integrity of their work. This will prevent the African example when, against the backdrop of a growing market, players often fall victim to fraudsters who work without a license and cheat their clients.  

Amendments to casino licensing

New adjustments to the rules for issuing licenses were already made at the beginning of 2024. This should have a comprehensive impact on the gambling industry’s development. After the new amendments were introduced, several dozen applications from foreign investors who decided to open a casino on the island immediately followed.

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