In 2026, Sri Lanka plans to establish a new organization to oversee online gambling. This authority will be responsible for issuing licenses to gambling companies, enforcing regulations, and collecting taxes from the industry.
Recent findings shared with Sri Lanka’s Committee on Public Finance show that most gambling – between 60% and 70% – now happens online. This shift is making it harder to collect taxes and effectively regulate gambling.
Dr. Harsha de Silva, head of the Committee on Public Finance, noted that most casino players – only 30 to 40% – now prefer to play online instead of visiting physical casinos. He encouraged the government to quickly create a single set of rules for all gambling, both online and in person, to recover substantial revenue currently being lost to unregulated websites and platforms.
New regulator by 2026
Dr. de Silva is pushing for the quick creation of the Gambling Regulatory Authority (GRA). This new organization will be responsible for licensing gambling companies, overseeing gambling activities, and collecting taxes. According to officials at the Finance Ministry and Inland Revenue Department, the GRA is expected to be fully functioning by June 30, 2026.
The GRA’s governing board will have seven members, including the Finance Secretary, the head of tax collection, the head of the Financial Intelligence Unit, and the Inspector General of Police. The Finance Minister will appoint three more members, and the board itself will choose a Chief Executive Officer to run the organization.
Dr. de Silva highlighted the importance of strong rules to help Sri Lanka meet international standards for preventing money laundering and funding terrorism. While Sri Lanka has six licensed casinos, none are currently allowed to offer games online. Unfortunately, many illegal online platforms are operating without paying taxes, and the government is working to fix this issue.
The new rules for gambling are based on the Gambling Regulatory Authority Act of 2025. This Act brings all existing gambling laws together into one, replacing older laws like those covering horse racing, general gaming, and casinos. The aim is to create a single, clear set of regulations for both in-person and online gambling.
Fiscal and structural reforms
The new law gives the Gambling Regulatory Authority (GRA) the power to decide what types of gambling are allowed, grant and cancel licenses, and work with financial crime and law enforcement groups to stop money laundering. Alongside these changes to how gambling is regulated, the government has also announced new financial policies.
- The casino entry fee for Sri Lankan residents has been doubled
- The gross gambling revenue tax has been increased from 15% to 18%
The GRA will oversee and enforce these rules, making sure online gambling companies pay the taxes they owe. This is predicted to bring in a lot more revenue that has been lost due to gambling sites operating without proper regulation.
Casinos like Bally’s, Bellagio, Casino Marina, and Stardust, which have been temporarily licensed since 2013, will now be directly regulated by the Gaming Regulatory Authority (GRA).
This isn’t about granting new permissions. Instead, we’re focused on making sure current gambling businesses are overseen effectively and follow all the rules.
Dr. Anil Jayantha Fernando
Dr. Anil Jayantha Fernando, the Deputy Minister of Economic Development, explained that the planned changes will concentrate on improving gambling regulations, not increasing its availability. The government will also evaluate how gambling affects society and culture, with the goal of finding a balance between economic gains and the well-being of the public.
What does this mean for Sri Lanka’s gambling industry?
The creation of the Gambling Regulatory Authority is a significant step forward for Sri Lanka’s gambling industry. The government aims to boost income, improve openness, and meet global standards by formally regulating online gambling and centralizing all oversight under a single body.
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2025-10-16 16:42