Sri Lanka to establish Casino Regulatory Authority amid rising Online Gambling Concerns

Prepend to the content

The Sri Lankan government is moving forward with plans to establish a Casino Regulatory Authority. The move aims to tackle issues related to online gambling, tax evasion, and money laundering.

According to The Sunday Times, a senior Finance Ministry official stated that the regulatory body will provide clear guidelines for operations and enhance transparency in revenue collection. The authority will oversee licensing, monitor financial transactions, and introduce consumer protection policies that align with global standards. It will also enforce responsible gambling measures and prevent illegal activities such as money laundering and underage gambling.

Sri Lanka’s casino and betting market has been growing rapidly. The industry was valued at $293.93 million in 2020 and is expected to reach $410.04 million by 2026, growing at a combined annual growth rate of 5.24%. The sector recorded a revenue of $376 million in 2024 and is projected to grow to $396 million in 2025. Factors such as political stability, improved infrastructure, rising disposable incomes, and increasing interest in online gaming are contributing to this expansion.

Despite the growth, the lack of a dedicated regulatory body has made taxation and oversight difficult. The Committee for Public Finance (COPF), chaired by MP Dr. Harsha De Silva, raised concerns about the Inland Revenue Department’s (IRD) failure to regulate online gambling. Initially, the IRD denied the existence of online gambling platforms in Sri Lanka. However, subsequent investigations confirmed their operations, particularly those using cryptocurrencies.

With stricter regulations in other countries, offshore gambling operators have moved to Sri Lanka. Following crackdowns in Dubai, several online betting networks shifted their operations to the country. These platforms operate through call centers and agents, mainly targeting Indian gamblers.

Popular gaming operators in Sri Lanka include 888casino, 22Bet, and Spin Casino. Additionally, Sri Lankan youth have become gambling operators, running these platforms and facilitating online betting activities. Joint ventures between foreign and domestic companies are also expected to contribute to further market expansion.

The proposed Casino Regulatory Authority aims to establish stricter oversight, ensuring that the industry operates within a transparent and legal framework.

The post Sri Lanka to establish Casino Regulatory Authority amid rising Online Gambling Concerns appeared first on G2G News.