The Sri Lankan government's recent push for the "Gambling Regulatory Authority Bill" has sparked significant controversy. The independent think tank "Advocata Institute" has publicly called for the withdrawal and rewriting of the draft, pointing out that it not only grants excessive power to the Minister of Finance but also leaves serious loopholes in key regulatory aspects, deviating far from international standards.
According to "The Island" report, the draft bill centralizes nearly all regulatory powers in the hands of the Minister of Finance, including appointing the Director-General and the Board of the Regulatory Authority, issuing mandatory directives, and even unilaterally making regulations. This structure has been criticized for severely weakening regulatory independence and laying the groundwork for potential abuse of power.
More shockingly, the draft bill excludes online gambling, foreign platforms, and the National Lotteries Board from regulation, and does not stipulate any requirements for user registration and identity verification, leading to completely uncontrolled cross-border gambling with no regulatory foothold.
At the same time, the draft does not grant any representation to the Sri Lanka Tourism Development Authority, and the regulatory body is not required to have a background in hospitality or gambling, raising widespread concerns about the lack of regulatory expertise. Worse still, the bill lacks an effective tracking mechanism for casino revenues, making tax and revenue regulation virtually non-existent; and the penalties for violations are described as "too lenient," with the maximum fine being only 100,000 rupees (about 334 USD) and a maximum imprisonment term of two years, almost lacking any deterrent effect.
The Advocata Institute states that while they support the initial intention of establishing a unified gambling regulatory body, the current version has structural flaws. They urge the government to immediately halt the legislative process, widely consult societal and expert opinions, and thoroughly rewrite the draft to ensure the new law has a transparent, fair, and enforceable governance mechanism.
