Sri Lanka Delays New Gambling Regulations Until December 2026
Sri Lanka.- 4 November 2026 | www.zonadeazar.com Sri Lanka’s Gambling Regulatory Authority (GRA) has established 31 December 2026 as its new deadline for publishing regulations governing casinos, sports betting and online gambling.
The decision follows the failure to meet an initial 30 June deadline and confirmation that the authority will also be unable to complete the process under its November timetable.
The delays have raised concerns about unregulated gambling activities and the Government’s ability to ensure effective oversight and improve tax collection across the industry.
Regulator Confirms Revised Deadline
GRA Director General Dr W.M.K.G.A. Wickramasinghe confirmed that the regulations are undergoing final preparation.
The initial draft was developed by an international advisory team before being submitted to a review committee.
Following that assessment, the proposals were returned to the regulator for finalisation.
The authority expects to publish the new rules before the end of 2026, although their final approval has not yet been confirmed.
Two Regulatory Timelines Missed
Implementation of the new gambling framework has experienced repeated delays.
The original timetable called for the publication of the first regulations by 30 June 2026.
Authorities subsequently identified 30 November as the target for making the regulator fully operational.
However, the GRA has acknowledged in advance that it will be unable to meet that second deadline.
The revised 31 December target represents another attempt to complete the transition towards unified gambling supervision.
Sri Lanka Has Six Licensed Casino Operators
Information presented to Parliament in July provided insight into the structure of Sri Lanka’s regulated gambling market.
According to official figures:
- Six casino operators hold licences.
- Five licensed casino operators are currently active.
- 37 operators hold sports betting and horse-racing licences.
These figures reflect activities formally registered with the authorities but do not necessarily include every digital platform offering gambling services to customers in the country.
Establishing specific regulations for online gambling remains one of the new authority’s principal challenges.
Concerns Over Unregistered Online Operators
During a parliamentary review by the Committee on Public Finance (COPF), officials from the Inland Revenue Department (IRD) reported that no online casino operators were registered with the department.
The situation has been identified as a challenge for financial and tax supervision.
Authorities have also raised concerns about digital platforms linked to foreign businesses offering gambling services to Sri Lankan customers.
The absence of formal registration makes it more difficult to identify operators and determine their potential tax obligations.
Gambling Generated US$44.9 Million in Taxes and Fees
Tax collection is one of the principal reasons for accelerating the new regulations.
According to the IRD’s 2024 Annual Performance Report, the Government collected:
- LKR9.81 billion (US$29.5 million) through the Betting and Gaming Levy.
- LKR5.1 billion (US$15.3 million) in casino licence fees.
- LKR14.91 billion (US$44.9 million) in combined revenue.
The total represented approximately 0.57% of the tax authority’s reported revenue for the year.
Authorities believe that stronger supervision of digital gambling could help improve the collection of taxes from the industry.
Gambling Taxes Increased in 2026
The Government introduced tax changes that took effect on 1 January 2026.
The principal adjustments included:
- Gross collection levy: increased from 15% to 18% for operators with monthly gross collections exceeding LKR1 million.
- Casino entrance levy: doubled from US$50 to US$100 per person for Sri Lankan citizens.
These measures form part of the Government’s efforts to increase public revenue from gambling activities.
However, higher taxes on regulated businesses have coincided with continuing difficulties in bringing unregistered online operators into the tax system.
New Gambling Authority Established in December 2025
The GRA was established under the Gambling Regulatory Authority Act No. 17 of 2025, which came into effect on 1 December 2025.
The legislation created a single body responsible for overseeing casinos, betting and online gambling.
Previously, these activities were governed through different provisions and supervisory arrangements.
The new framework aims to establish common standards for licensing, regulatory compliance and enforcement.
However, its full implementation depends on the publication of supporting regulations.
Parliament Raises Concerns Over Delays
Harsha de Silva, Chairman of Parliament’s Committee on Public Finance, has expressed concern about the delays.
The lawmaker warned that insufficient oversight of digital gambling platforms could be contributing to significant losses in potential tax revenue.
He also questioned the presence of gambling businesses linked to foreign operators which, according to his statements, were conducting activities without adequate financial supervision.
His comments reflect the growing importance of online gambling regulation within Sri Lanka’s economic and legislative debate.
Next Steps: Publication by 31 December
The GRA must complete its technical and legal review before publishing the regulations.
The new framework is expected to provide greater clarity regarding licensing requirements, digital gambling and supervisory mechanisms.
The provisions will then need to proceed through the relevant institutional procedures before implementation.
With six licensed casino operators, 37 betting licences and US$44.9 million in gambling-related revenue collected in 2024, Sri Lanka aims to complete its new regulatory framework by 31 December to strengthen supervision of land-based and online gambling.
Meeting the revised deadline will be an important indicator of progress in the reform process launched in December 2025.
Edited by: @fonta
