Sri Lanka Delays Gambling Regulations to October

Sri Lanka’s gambling regulations, originally expected to be published by 30 June, are now likely to be completed in October as the draft framework remains under review by a special committee. The delay means the country’s new gambling legislation cannot yet operate with its full regulatory framework.

Draft Regulations Still Being Reviewed

According to local media outlet The Morning, Acting Director of the Gambling Regulatory Authority, General Gaya Adikari, said the initial phase of the regulations will focus on Section 19 of the ministerial order. This includes provisions covering licensed gambling activities, licensing procedures, online gambling and anti-money laundering requirements.

He added that the expert committee reviewing the draft is expected to submit its recommendations by the end of this month.

Although the Gambling Regulatory Authority Act (Act No. 17 of 2025) came into effect on 1 December 2025, additional regulations must still be finalized before the new legal framework can function as intended.

Questions have also been raised regarding the review process, with concerns over the committee’s lack of industry expertise and the absence of consultations with stakeholders from both the gambling sector and government.

Illegal Online Gambling Remains a Concern

As work on the regulations continues, authorities are also examining the issue of illegal gambling operations.

Deputy Commissioner of the Inland Revenue Department, Kumara Dharmawardena, said Sri Lanka currently has 37 licensed sports betting and horse racing operators, along with six licensed casino operators, five of which are currently active.

He also confirmed that while the law allows online gambling, no online casino operator has registered with the Inland Revenue Department. According to him, numerous online gambling platforms continue to serve Sri Lankan players while processing payments outside the country's formal banking system, primarily through cryptocurrency.

Gambling Regulatory Authority Chairman Wasantha Nawarathna Bandara stated that Section 15 of the Gambling Regulatory Authority Act prohibits any gambling activity without a valid licence. He also noted that Section 16 requires every gambling operator to establish a legal entity within Sri Lanka, meaning existing online gambling platforms operating without meeting these conditions are considered illegal.

Authorities Continue to Address Enforcement Challenges

Despite the legal restrictions, questions remain about how the new framework can be enforced.

Inspector General of Police Priyantha Weerasooriya said the police have sought legal guidance from the Attorney General’s Department regarding enforcement under the Gambling Regulatory Authority Act.

Officials noted that although the legislation prohibits unlicensed gambling, it does not clearly grant enforcement powers to the responsible authority. As a result, authorities have relied on the Cybercrimes Act to take action where possible.

Weerasooriya added that effective enforcement will depend on the Gambling Regulatory Authority introducing the outstanding regulations needed to support implementation.

Regulatory Framework Still Incomplete

With the regulations still under review, Sri Lanka’s gambling reform remains unfinished despite the legislation already being in force.

The draft rules continue to move through the committee process, while authorities work to resolve both regulatory and enforcement issues. If the current timetable holds, the regulations are expected to be finalized in October, allowing the country's new gambling framework to move closer to full implementation.