The island nation plans to overhaul and unify existing gambling regulations under a new authoritative body. Attorney General K. A. Parinda Ranasinghe Jr., PC. passed a draft bill proposing a new gambling regulator to oversee Sri Lanka’s booming gambling industry. The gambling authority will replace outdated statutes and introduce new regulations to tighten oversight in an evolving ecosystem.
Highlights of the Story
- The gambling authority will be an independent institution overseeing Sri Lanka’s diverse gambling verticals, including online and offline casinos and betting operations.
- If cleared by the Senate, the Gambling Regulatory Authority Act will give the gambling authority legal rights to supervise the industry and enforce legal mandates.
- The regulator’s primary responsibilities will include collecting taxes from gambling activities, promoting transparent, safe, and responsible gambling practices, and preventing illegal gambling activities and money laundering.
Sri Lankan Gambling Authority to Act as an Independent Institution
Sri Lanka is preparing to update its existing gambling regulations by proposing a bill to establish a dedicated gambling authority. The proposal is supported by President Anura Kumara Dissanayake, who also serves as the nation’s Minister of Finance, Planning, and Economic Development.
The draft proposes the formation of an independent authority with a broad mandate and comprehensive oversight of domestic and international gambling operations. Once established, the legislation will be enforced as the Gambling Regulatory Authority Act, granting the regulatory body the legal authority to supervise all gambling activities within the island nation.
The bill also proposes to revoke three existing gambling laws, namely the Gambling Ordinance No. 17 of 1889, the Horse Racing Betting Ordinance, and the Casino Ordinance. These regulations currently monitor several gambling verticals, but are considered fragmented and outdated.
Replacing these statutes with a single comprehensive regulation will not only modernise Sri Lanka’s gambling laws but also simplify enforcement and improve player safety. The draft bill aims to eliminate regulatory gaps and overlapping responsibilities, which have historically complicated enforcement and oversight.
A statement from the Cabinet regarding the subject reads:
The gambling authority will work as an independent regulator with total control over all gambling operations in Sri Lanka. The body will oversee all gambling activities on ships and in Colombo Port City.
Gambling Trend in Sri Lanka on the Rise
One of the primary drivers of change is the growing popularity of online gambling in Sri Lanka, which is not governed by existing statutes. While land-based gambling operators are taxed, online gambling is completely unregulated. This not only bleeds the Sri Lankan economy but also poses safety hazards for the consumers.
The Committee of Public Finance has urged the government to rein in the unchecked rise of online gambling operations. The new authority will introduce legal mandates in line with global standards to improve player safety, address gambling-related social concerns, and introduce taxes.
The bill aims to stabilise the country’s regulatory environment, which is crucial as Sri Lanka is expecting major investments in the gambling sector.
An established regulatory framework will not only increase investor confidence but also provide a stable environment for legal gambling and sports betting operations. The government hopes to attract interest from international gaming operators.
A regulated gambling industry will improve player protection by monitoring and flagging unfair gambling practices. Additionally, it will rein in illicit gambling operators that avoid paying taxes. It will also prevent money laundering and terror financing efforts.
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