Sri Lanka aims to revolutionize its gambling industry with the Gambling Regulatory Authority Bill, 2025. However, a critical oversight in regulating junket operators has raised concerns over compliance, risks, and industry reputation.
Understanding Sri Lanka’s Casino Reforms
In June 2025, Sri Lanka’s Parliament introduced the Gambling Regulatory Authority Bill, a major step in overhauling its gambling landscape. The reforms include heightened taxation, modernized industry rules, and a unified national regulatory authority in place of older legislation like the Casino Business Regulation Act, 2010. These changes aim to ensure sustainable tourism, attract foreign investors, and enhance government revenue.
Among the key updates are:
- Increased casino entry fees from US$50 to US$100.
- Higher gambling turnover tax, raised from 15% to 18%.
- The removal of restrictions on importing casino machines.
The Junket Regulation Gap: A Critical Oversight
Junket operators play a pivotal role in the casino sector, particularly in facilitating high-stakes gambling by VIP players. However, Sri Lanka’s Gambling Regulatory Authority Bill fails to address junket activities, leaving a significant blind spot in operational oversight.
Why Junket Regulation Matters
- Preventing Financial Crimes: Junket operators can be vulnerable to money laundering and tax evasion without stringent controls.
- Global Compliance Standards: Lack of regulation contrasts with jurisdictions like Macau or Singapore, where junket activities are strictly monitored.
- Avoiding Reputational Damage: Weak regulatory frameworks might deter potential investors and tourism partners.
Risks in the Current Framework
The omission of junket-specific rules introduces compliance vulnerabilities for Sri Lanka:
- Anti-Money Laundering (AML) risks: Unregulated junkets could facilitate financial crimes.
- Operational challenges: Casinos lack clear guidelines for engaging third-party junket partners.
- Industry instability: Regulatory ambiguity may deter investment and weaken confidence in the gambling sector.
How Does Sri Lanka Compare to Global Standards?
In leading gaming hubs such as Macau and Singapore, junket operators must meet strict licensing, reporting, and client verification requirements. These frameworks ensure better accountability and reduce the risk of financial crime. By contrast, Sri Lanka’s current approach fails to establish similar standards, which could hinder its growth as a regulated gambling destination.
What Lies Ahead for Sri Lanka’s Gambling Industry?
The introduction of the Gambling Regulatory Authority Bill is undoubtedly a step forward in modernizing Sri Lanka’s casino sector. However, to align with global best practices and minimize compliance risks, the adoption of clear and robust junket-specific regulations is essential.
As major gaming projects like the City of Dreams Sri Lanka by Melco Resorts are set to launch, policymakers must act swiftly to close regulatory gaps and ensure a sustainable future for the industry.
