Sri Lanka moves ahead with bill to establish independent authority to oversee sports betting and gambling

The Sri Lankan government is moving to bring long-overdue structure and oversight to the country’s fast-growing gambling and betting sector, with Cabinet this week approving a draft bill to establish a national regulatory authority.

Cleared by the Attorney General and now awaiting publication in the Government Gazette, the Gambling Sports Regularisation Act proposes the formation of the Gambling Sports Regularisation Authority, an independent body tasked with regulating all gambling-related sports activities across the country.

The authority would cover everything from traditional casinos to online betting platforms and offshore gambling operations, including those taking place aboard ships and within Colombo Port City.

Cabinet Spokesman and Health Minister Dr. Nalinda Jayatissa confirmed the development at the weekly media briefing following the Cabinet meeting.

“The proposed authority will serve as the sole national regulator with a broad mandate, covering areas such as offshore gambling sports on ships and in the Colombo Port City, online gambling platforms and offshore casinos,” he said.

The move follows years of calls from the Committee on Public Finance (CoPF), which has repeatedly urged the government to fast-track the creation of a dedicated regulatory body. Lawmakers have warned that while physical casinos are taxed, the booming online gambling sector continues to operate largely outside of state oversight, a gap that has led to lost revenue.

“The Gambling Sports Regularisation Act has received the clearance of the Attorney General and the draft Bill will now be published in the Government Gazette before being submitted to Parliament for approval,” Dr. Jayatissa said, adding that the proposed authority would provide a long-needed mechanism for transparency, accountability, and proper revenue collection.

Once enacted, the new law would give the proposed authority the power to issue licenses, monitor operator compliance, enforce penalties, and implement policies to reduce gambling-related harm.