The Sri Lankan government has recently advanced the "Gambling Regulatory Authority Act of 2025," which has entered its final review stage. It proposes the establishment of a unified national gambling regulatory body that covers comprehensive supervision of both physical casinos and online gambling services. However, this legislative measure aimed at regulating the gambling industry has sparked intense controversy in political and social circles, with heated debates surrounding the legalization of casinos.
The bill allows the legal establishment of gambling intermediary agencies, granting them the rights to introduce VIP customers and share gambling profits with casinos. This regulatory model is much more lenient than traditional gambling areas such as Macau. It is widely believed that this move is paving the way for the "Sri Lanka City of Dreams" casino project, which is set to open in August this year. The project is a joint investment by Melco Resorts & Entertainment and local consortia, with initial investments including license fees and renovations exceeding 1 billion yuan.
However, specific clauses of the bill have raised concerns. The Parliamentary Public Finance Committee and several think tanks have pointed out that the regulatory provisions are too vague, with minimum fines of only 100,000 rupees (about 2,300 yuan), and the Finance Minister has excessive power. Several members of parliament have warned that the bill lacks sufficient regulatory strength to prevent money laundering and corruption risks, effectively "opening the door to invite thieves."
Some members of parliament have called for the withdrawal of the bill to be redrafted, emphasizing the need for a well-established system to avoid rushing legislation for a single project and not turning the regulatory system into a protective umbrella for business groups.
With Sri Lanka currently under significant financial pressure, the government hopes to revitalize tourism and the economy through the gambling industry. However, if regulation is lax, it could pose governance risks. As the opening of the City of Dreams casino approaches, there is ongoing concern about whether the bill is "tailor-made."
