Sri Lanka's gambling industry is facing a significant turning point. The government has recently officially submitted the "2025 Gambling Regulatory Authority Act" to the parliament, aiming to overhaul and legalize gambling activities nationwide through the establishment of a unified regulatory body, covering both physical casinos and online gambling. The bill was approved by the cabinet in April this year, published in the Gazette in May, and is currently in the final legislative stage. Once passed, it will mark the first time Sri Lanka has fully standardized its gambling system.
The core of the new bill is the establishment of the "Gambling Regulatory Authority," which will have the power to issue various gambling operation licenses nationwide. Of particular interest is the bill's pioneering "gambling intermediary" system, which allows authorized intermediary agencies to channel high-end customers to casinos and participate in revenue sharing. This practice is relatively rare in the international gambling market and is more open compared to the strict restrictions on gambling intermediaries in places like Macau.
Deputy Minister of Finance and Planning, Harshana Suriaperuma, stated that the government has drawn on the mature experiences of countries like Singapore in drafting the law, with the goal of promoting tourism, entertainment, and employment markets under legal and regulatory premises. He emphasized, "This reform has been years in preparation and is now finally coming to fruition."
To facilitate the implementation of the law, the Sri Lankan government has relaxed its gambling equipment import policy since May 2025 and is actively promoting the construction of sports and entertainment facilities to enhance tourism capabilities.
The introduction of the bill also provides a legal basis for the soon-to-open large casino complex "Sri Lanka Studio City." The project is developed in collaboration between Melco Resorts & Entertainment and local enterprise John Keells Holdings, and is expected to open in August this year. According to disclosed information, the project has been granted a 20-year casino license, with a license fee of approximately 119 million yuan.
In addition, Melco plans to invest an additional 125 million USD for the interior decoration of the casino, while also launching its high-end hotel brand Nüwa. The hotel is located at the top of the Cinnamon Life landmark building, offering 113 luxury rooms.
Although there are some local casinos operating in Sri Lanka, there has long been a lack of a national unified regulatory system. Once the new bill takes effect, it will fill the policy gap, enhance investment attractiveness, and is expected to attract more international operators to settle in, injecting new vitality into the country's gambling market.
