Advocata Institute welcomes Gambling Bill approval

• Urges Govt. for wider public consultation

The Advocata Institute has welcomed the Sri Lankan Cabinet’s overwhelming approval of the Gambling Regulatory Bill. This decisive move marks a significant step towards establishing a transparent, efficient, and accountable framework for the gaming industry.

It also said a robust regulatory regime is essential to improving investor confidence, enhancing market integrity, addressing longstanding regulatory gaps, and reducing revenue leakages—ultimately contributing to sustainable economic growth.

The Advocata Institute has long highlighted the urgent need for a robust regulatory framework to oversee both the casino and broader gaming sectors, as outlined in its 2024 report “A Comprehensive Policy Framework for the Gaming Industry of Sri Lanka (2024).” The absence of such a framework has historically undermined the industry’s potential by deterring reputable foreign investors and compromising revenue integrity. 

A well-structured regulatory regime is a critical step towards promoting tourism and driving foreign exchange growth.

While the Cabinet’s approval signals the Government’s commitment to a structured and accountable system, Advocata Institute stresses the importance of implementing the Gambling Regulatory Authority alongside a transparent public consultation process. A formal mechanism for public input is essential to ensure that diverse perspectives—industry experts, academics, civil society, and the public—are considered. This inclusive approach will help shape a more credible, balanced, and forward-looking regulatory framework. Ultimately, a law of such national importance must not be the product of closed-door deliberations alone.

Furthermore, countries such as the UAE and Thailand, once considered unlikely regional competitors for the business of gaming, are now rapidly liberalising their gaming industries. Their accelerated progress poses a real threat to Sri Lanka, potentially allowing them to capture potential market share that could have been Sri Lanka’s. In this context, Advocata Institute underscores the urgent need to operationalise the Gambling Regulatory Authority without delay, to remain regionally competitive and safeguard economic opportunities.

Advocata Institute underscores that the Draft Bill must incorporate key principles for the new regulatory regime, with principles grounded in its own research and aligned with globally recognised best practices from jurisdictions such as Singapore, Macau, and the Philippines. These include: 

• Transparent licencing and operator standards: To ensure a competitive yet ethical market, licences should be granted only to financially sound entities with a proven track record of ethical conduct. This will help establish a level playing field and safeguard market integrity.
• Modernised framework for taxation and revenue collection: Tax administration systems must be updated to capture the full revenue potential of both onshore and online gambling. Given the industry’s cash-based nature, robust mechanisms are essential to prevent tax evasion and maximise fiscal returns.
• Robust consumer protection and responsible gaming guidelines: Strong safeguards must be enacted to curb compulsive gambling, prevent money laundering, and mitigate social harms. A focus on responsible gaming will help manage the industry’s broader social impact.
• Independent regulatory oversight with public participation: The Gambling Regulatory Authority must operate free from political and industry interference, while institutionalising channels for public feedback to enhance accountability and legitimacy.

Advocata Institute emphasises the critical importance of stakeholder involvement in building a strong regulatory system, calling for a transparent public consultation process. Such a process would not only strengthen mutual trust but also help pre-empt potential implementation challenges. A comprehensive and inclusive consultation phase ensures that the final legislation reflects not just economic objectives, but also broader considerations of social responsibility and public interest.

Advocata Institute is committed to collaborating with policymakers, industry stakeholders, and community representatives to advance these recommendations. It invites media representatives and all interested parties to engage in this crucial discussion, shaping the future of Sri Lanka’s gaming industry.