Sri Lanka Steps Closer to Gambling Regulation: What's New and What Does It Mean?
Sri Lanka Advances in Establishing Regulations for Gambling Sector
It's full steam ahead for gambling industry regulation in Sri Lanka, one of Asia's oldest democracies. The ball is now rolling, with a draft for a Gambling Sports Regularisation Act set to be debated and approved by parliament.
The Sri Lankan Cabinet recently greenlit the publication of the draft in the government gazette, paving the way for debate and final approval. This followed the bill's approval by the Attorney General.
The act, if passed, would introduce a Gambling Regulation Authority responsible for licensing, oversight, and enforcement across various gambling verticals. Minister Dr. Nalinda Jayatissa, in his weekly post-Cabinet meeting press briefing, disclosed the bill's progress.
The proposed regulation comes amid growing concerns about unregulated gaming and betting. The Daily FT cited ongoing calls by the Committee on Public Finance for a swift regulator to avoid potential losses to the State coffers. Interestingly, despite receiving tax from retail casinos, the booming iGaming industry remains largely untouchable.
Under the proposed Act, the regulatory body would issue and renew licenses, set and monitor technical, operational standards, and anti-money laundering, know-your-customer rules. It would also oversee responsible play measures, including wagering limits and self-exclusion registers.
The Act, if passed, would supersede multiple older laws and establish regulatory procedures for both domestic and foreign operators seeking to serve Sri Lankan customers. It would empower the regulator to carry out inspections, impose administrative penalties, freeze or revoke licenses, and hear appeals against such decisions.
This move towards regulation could have significant implications for the gaming industry in Sri Lanka, bringing much-needed structure, oversight, and accountability to an industry that's been thriving without substantial regulation. It could also help address concerns about lost revenue due to unregulated gambling activities, particularly in the booming online sector.
However, the regulation could face challenges from existing black market influences. It will be interesting to see how this regulatory body balances its role in fostering a regulated and accountable gambling industry while addressing issues related to illegal activities and responsible gaming practices.
- The Gambling Sports Regularisation Act, once approved by parliament, will establish a Gambling Regulation Authority in Sri Lanka, responsible for licensing, oversight, and enforcement across various gambling verticals, including casino-and-gambling.
- Under the proposed Act, the regulatory body will issue and renew licenses, set and monitor technical, operational standards, and anti-money laundering, know-your-customer rules, and oversee responsible play measures like wagering limits and self-exclusion registers.
- The regulation of the gambling industry in Sri Lanka could help address concerns about lost revenue due to unregulated gambling activities, particularly in the booming online sector, while also fostering a regulated and accountable gambling industry, but it may face challenges from existing black market influences.
