Illegal betting activities thrive, Govt fails to operationalize regulations

• The country continues to lose tax revenue because of unlawful and unregulated gaming activities carried out both online and physically
• No regulations have been enforced as yet Officials, however, said they had finalized regulations for the operation of casinos

By Kelum Bandara  

Despite international media reports that Sri Lanka has become a hub for online scams, the Government is yet to operationalize the Gaming Regulatory Authority by introducing the necessary regulations.  

As a result, the country continues to lose tax revenue because of unlawful and unregulated gaming activities carried out both online and physically. This situation came to light during the latest session of the Committee on Public Finance (CoPF).  

CoPF Chairman, MP Dr. Harsha de Silva, inquired from officials of the Gaming Regulatory Authority why the necessary regulations had not been enforced to operationalize the body.  

He said this should have been done in a phased manner, where the first set of regulations should have been put in place by June 30, 2026.  

It transpired that no regulations have been enforced as yet.  

Officials, however, said they had finalized regulations for the operation of gaming businesses such as casinos.  

The regulations, modelled on systems in three countries, including Singapore, have now been referred to a panel of experts, according to officials responding to the CoPf Chairman.  

The regulations will provide for licensing, online gaming and anti-money laundering measures.  

An expert from the United Kingdom is also expected to visit next month to provide advice in this regard. In addition, the EU Global Facility will assist in strengthening the anti-money laundering framework.