The Gambling Regulatory Authority Act, No. 17 of 2025 (the Act) establishes a regulatory framework applicable to all types of gambling, except for social gambling and lotteries conducted under the Development Lotteries Board and the National Lotteries Board.
Definition of Social Gambling which is exempt from the purview of the Act
Social gambling is non remote gambling, including private or non commercial gambling, and must contain the following features:
- It must be conducted by individuals in an individual’s home within Sri Lanka;
- The participant individuals must be members of the same family or know each other personally;
- It must be substantially spontaneous although it may occur regularly, habitually or by arrangement among the involved individuals;
- It must not be promoted or conducted for private gain of any non participant or in the course of any business;
- It must be conducted in a manner that winning must be the only way a participant can make a profit or gain any benefit from the gambling
Objects of the Act
The specified objects of the Act are broadly to regulate the gambling industry with a view to instill public confidence in the gambling industry, to ensure that the industry is conducted in a manner that will contribute toward tourism, employment and economic development and to prevent any misuse of gambling in a manner that causes social harm or constitutes unlawful activity, crime or disorder.
Salient Features
- The Act establishes a Gambling Regulatory Authority (the “Authority”) with specified powers duties and functions which include issuing and cancelling licenses relating to gambling and monitoring, supervising, regulating and controlling the operations of gambling and all licensees.
- Gambling and junket operations can only be carried out under the authority of a license issued by the Director General of the Authority (Director General). Additionally, a license is required to develop, distribute or operate gambling software and a digital gambling license is required for carrying on digital gambling.
- Only a company incorporated under the Companies Act No. 07 of 2007, with a minimum specified capital, may apply for a licence for gambling.
- The premises where gambling is carried out have to be registered with the Authority by the licensee.
- The Director General will renew of a license or a certificate of registration of premises where, among others, there is no public complaint or no adverse impact on the public by the continuation of the gambling concerned.
- All rules of gambling, lists of available gambling and maximum number of stakes permitted have to be submitted to the Authority by the licensee for review and approval.
- The license, registration certificate, authorized games, game rules, and approved maximum stakes must be displayed in a conspicuous place whenever the gambling premises is open.
- Any transaction relating to gambling must be made in currency or by a debit or credit card at a main cash desk of the gambling operator.
Sanctions
The Magistrate’s Court exercises jurisdiction over all offences under the Act. However, if there are aggravating circumstances giving rise to public disquiet in respect of any offence, the Attorney-General may forward the indictment directly to the High Court.
Offences under the Act include:
- Carrying on gambling without a licence or providing false, misleading or inaccurate information to obtain a licence;
- Advertising gambling carried on in violation of the Act;
- Carrying on gambling in or from any premises not registered under the Act or using or allowing premises to be used for gambling in contravention of the Act or knowingly entering and remaining on such premises;
- Organizing, managing or assisting in organizing or managing any gambling carried on in contravention of the Act or providing any financing in the process of organizing or conducting gambling carried on in contravention of the Act;
- Gambling with a person under 18 years of age (except social gambling) or allowing a person under 18 years of age to engage in gambling.
- Publishing, broadcasting or disseminating any advertisement that contains false, deceptive or misleading information regarding the nature, risks or chances winning associated with gambling or that implies gambling can resolve financial difficulties or improve social status.
Date of Operation
The Act came into operation on 1st December 2025, as published by Gazette Extraordinary bearing No. 2463/03 published on 17th November 2025.
Transitional Provisions and Savings
The Act repeals the Betting on Horse Racing Ordinance (“Betting Ordinance”), Gaming Ordinance and the Casino Business (Regulation) Act No. 17 of 2010 (“Casino Act”).
However, the Act provides for the following:
- all certificates of registration issued under the Betting Ordinance remain valid under the Act;
- regulations issued under the Casino Act will continue to be in force unless inconsistent with the Act or are amended by new regulations;
- Casino licenses issued under Casino Act remain valid under the Act; and
All pending legal proceedings under the repealed laws will continue under the Authority.
Authors
Raneesha de Alwis
Counsel
Nishadh Iqbal
Senior Associate
