Sri Lanka to create Gambling Regulatory Authority

The government will draft a bill to establish a new gambling regulator in a bid to increase tax collection.

Sri Lanka.- The Cabinet of Ministers has given its approval to draft a bill for the creation of a Gambling Regulatory Authority. Local media report that the regulator’s goal will be to ensure the proper collection of taxes from gambling venues, combat illegal activities and mitigate the potential negative impact of gambling.

The legislation is expected to introduce an entrance fee for casinos in order to regulate access and potentially generate additional revenue for the government. Casinos are estimated to owe US$7.4m in taxes due to a lack of regulatory oversight. The plan to regulate gaming would allow operators to obtain licences for up to 20 years, with five-year renewable licences costing US$1.36m.

Last year, the cabinet already granted casino licences to existing gaming operators in the country. Despite the passage of the Casino Business (Regulation) Act in 2010, which mandated the issuance of licences for gaming establishments, the necessary regulations were yet to be published.