Sports betting currently exists in a complex legal environment in Sri Lanka, with traditional land-based betting operations subject to strict regulations while online sports betting remains largely unregulated. The country operates under the Betting and Gaming Levy Act, which requires any person carrying on the business of bookmaker or gaming to pay annual levies whether operating lawfully or unlawfully (1). The government has historically maintained strict controls over gambling activities, with limited licensed betting operations and severe penalties for unauthorized activities.
Sri Lanka is currently undergoing significant legislative changes regarding gambling regulation, with new legislation advancing in 2025 to establish a comprehensive regulatory framework. The draft bill has received clearance from the Attorney General and proposes the establishment of the Gambling Regularization Authority as an independent entity responsible for monitoring all gambling activities related to the sports sector (2). This represents a major shift from the current restrictive approach toward a more regulated and controlled gambling market.
"The draft Bill, which has received clearance from the Attorney General, proposes the establishment of the Gambling Regularization Authority. The Authority is envisioned as an independent entity."
The proposed Gambling Regularization Authority will have broad oversight powers, including issuing licenses to gambling operators, monitoring activities to prevent illegal operations, and ensuring compliance with regulatory standards. The new regulatory framework will cover onshore gambling, offshore betting on ships, activities in the Colombo Port City, and online platforms (2). Until this new legislation takes effect, sports betting remains subject to existing restrictions under the Betting and Gaming Levy Act, with operators required to pay specified levy rates for each place of business operation (1).
Source:
https://www.ird.gov.lk/en/type of taxes/sitepages/betting and gaming levy.aspx
https://agbrief.com/news/sri-lanka/24/04/2025/sri-lanka-advances-legislation-to-regulate-gambling-and-offshore-betting/
Last updated: 15-09-2025 Disclaimer: This article does not provide legal advice. If you need legal advice, please contact an attorney directly.
