A new report from the Committee on Public Finance (COPF) shows that most casino players in Sri Lanka now gamble online. About 60% to 70% use online casinos, while only 30% to 40% go to physical ones. This means more people now prefer online gambling because it is easier and more private.

However, there is currently no system in place to collect tax from these online gambling platforms. This lack of regulation means the government is losing a large amount of potential revenue. Officials say this situation has become a serious concern, as the online casino market continues to grow without proper control or contribution to the state.

Plans to Create a Gambling Regulatory Authority

During a recent COPF meeting in Parliament, chaired by MP Dr. Harsha de Silva, the Finance Ministry and the Department of Inland Revenue agreed to create a Gambling Regulatory Authority by June 30, 2026. This new authority will be responsible for managing and regulating the physical and online casino activities in Sri Lanka.

Dr. de Silva said the move is urgent because Sri Lanka’s financial systems will be reviewed by the Financial Action Task Force (FATF) next year. The review will evaluate how well Sri Lanka is preventing money laundering and terrorism funding. Dr. de Silva said creating a gambling authority will help organize casino operations, improve tax collection, and make the system more transparent.

Need for Expertise and Better Framework

The committee suggested hiring foreign experts to help create strong rules for the new authority. They believe learning from countries with successful systems will help Sri Lanka avoid mistakes and build a better model.

Representatives from the Finance Ministry told the committee that they have already started the process of nominating members for the authority’s seven-member board. Once the board is formed, a Chief Executive Officer (CEO) will be appointed to lead its daily operations. The new body will be in charge of issuing licenses, monitoring compliance, and ensuring that both physical and online casinos operate within the law.

Current Situation and the Way Forward

Currently, six physical casinos in Sri Lanka have licenses, but online casinos operate without registration or paying taxes. This lack of regulation affects government income and raises concerns about player safety and fairness.

Officials say creating a Gambling Regulatory Authority will solve these problems by bringing all casinos under one law. It will help the government collect taxes, earn more income, and protect players from illegal platforms.

Overall, gambling in Sri Lanka is changing quickly, and authorities need to catch up. The new gambling authority could be a big step in helping the country control and benefit from the growing online casino market.