Sri Lanka’s Gambling Regulatory Authority has set Dec. 31 as its latest deadline to publish regulations for casinos and online gambling, after an initial June 30 target was missed and a subsequent November timetable was set.
The authority’s director general, Dr. W.M.K.G.A. Wickramasinghe, said the rules were being finalised following a review. An international advisory team drafted the regulations, which were then referred to a review committee before returning to the authority for completion.
The rules are intended to give practical effect to the Gambling Regulatory Authority Act No. 17 of 2025, which established a unified framework covering most gambling activity. The act was certified on Sept. 3, 2025 and, according to The Morning, came into operation on Dec. 1 that year.
The law gives the authority responsibility for licensing, supervision and enforcement. It can issue, renew, suspend or cancel licences; make rules on gambling premises and financial-crime controls; and access online gambling portals. Gambling cannot be carried on without a licence issued by the director general, while applicants must be companies incorporated or registered in Sri Lanka.
The delay has kept attention on online operators. Inland Revenue Department officials told Parliament’s Committee on Public Finance that no online casino operators had been registered with the department, despite numerous platforms targeting Sri Lankan customers. As this publication reported in September, blocked betting websites remained accessible from local internet connections while an online licensing system had yet to be created.
Committee chairman Dr. Harsha de Silva has argued that the absence of effective rules left foreign-linked online gambling businesses without sufficient financial supervision and allowed potential tax revenue to go uncollected. In a June committee session, he also questioned advertising for online betting and casino services during cricket matches, including promotions using the Sri Lankan Government logo while claiming to be licensed.
Sri Lanka had six licensed casino operators in July, five of them operating, alongside 37 licensed sports-betting and horse-racing operators. Betting and Gaming Levy receipts reached Rs. 9.81 billion in 2024, while casino licence fees brought in Rs. 5.1 billion, for combined collections of about Rs. 14.9 billion, or 0.57% of the Inland Revenue Department’s reported revenue.
Tax measures have already increased the financial burden on the sector. The gross-collection levy for operators exceeding Rs. 1 million in monthly collections rose from 15% to 18% on Jan. 1, while the corporate income-tax rate for betting and gaming businesses rose from 40% to 45% on April 1, 2025. Casino operators also face an annual Rs. 500 million gaming levy, and the casino entrance levy for Sri Lankan citizens has doubled to US$100.
