Sri Lanka to Launch Gambling Regulatory Authority by 2026

Gambling Regulatory Authority (Sri Lanka) is expected to be fully operational by June 30, 2026, marking a turning point in how Sri Lanka governs and taxes its gambling industry. The deadline was established through parliamentary discussions between the Finance Ministry and the Department of Inland Revenue, reflecting growing pressure to rein in the country’s largely unregulated online betting market.

Online Gambling Drives Fast-Track Regulation

Sri Lankan officials revealed that the majority of casino customers ( around two-thirds ) are now betting through online channels rather than visiting land-based venues. Only about 30–40% of gamblers continue to play in physical casinos.

While the government has licensed six land-based casinos, online platforms remain outside the tax net, allowing operators to generate significant revenue with little oversight. This regulatory gap has accelerated the creation of a single, powerful agency capable of supervising the entire gambling ecosystem.

GRA to Replace Outdated Legislation

The new authority is being formed under the recently passed Gambling Regulatory Authority Bill. Once in effect, it will replace multiple fragmented laws including the Horse Racing Betting Ordinance, Gambling Ordinance and Casino Ordinance bringing them under one modernized regulatory framework.

The GRA’s mandate will include licensing operators, collecting gambling-related taxes, setting compliance standards and cracking down on illegal betting networks. This centralization is intended to streamline enforcement and increase transparency across the sector.

FATF Review Spurs Urgency

The decision to fast-track the GRA also ties into Sri Lanka’s upcoming evaluation by the Financial Action Task Force (FATF). The international body will assess the country’s progress on anti-money laundering and counter-terrorism financing measures. A fully functioning regulatory authority is seen as a critical element in proving compliance with FATF standards and avoiding reputational risks on the global stage.

New Taxes to Boost State Revenue

The 2025 national budget already includes measures to raise revenue from gambling without expanding the market. These include higher casino entry fees for locals and increased levies on betting activities. Officials expect these steps to generate more government income while discouraging unregulated gambling activity.

Building a Modernized Gambling Framework

With the GRA set to launch within eight months, Sri Lanka is positioning itself for a more transparent and accountable gambling landscape. The move is designed not only to strengthen regulation and tax collection but also to protect players from illegal operators.

By consolidating oversight, improving compliance, and introducing modern digital controls, Sri Lanka aims to bring online gambling into the legal fold and align its framework with international standards.