SPECIAL REPORT: Sri Lanka, the fabled Serendipity of yore, is set to become an iGaming paradise as Southeast Asia’s next big hub.
But what’s behind the buzz? And how big is the opportunity?
A land of sun-kissed beaches, safaris, wild elephants, Buddhism and colourful mysticism, Sri Lanka has more recently been in the headlines for its economic crisis in the aftermath of a bloody civil-war, rather than good news.
But today things are changing.
Now in recovery mode, the country is opening up to foreign investment and offering iGaming companies a new base of operations.
With the Philippines, China and India continuing their respective clampdowns on licensing pathways, this small island-nation, population 22 million, anchored off the southern tip of India, is now considered an operator friendly launchpad into South and Southeast Asia’s gaming markets — a region home to more than two billion people, a quarter of the world’s population.
Opening Doors of Perception
And with brand-new gambling regulations swinging the doors wide open and a growing reputation as a developing tech hub, the message is loud and clear: Sri Lanka is ready for iGaming business.
Sri Lanka’s Gambling Regulatory Authority Bill establishes the country’s new regulatory framework for gambling.
Passed in late August, the bill creates a dedicated regulator–the Gambling Regulatory Authority (GRA)–charged with collecting gambling-related revenue, safeguarding transparency and good governance and cracking down on illegal gambling activities.
The law replaces the country’s previous framework–a messy patchwork of legacy rules–bringing gambling firmly into the formal, taxable economy and legalising online gambling for the first time – a win for investors, regulators, and the hitherto struggling Sri Lankan Treasury.
The regulator–scheduled to be fully functional by June 2026–will have sweeping oversight: Casinos, integrated resorts, betting shops, online gambling and even portside casino boats.
Its remit covers licensing, compliance monitoring and enforcement, with an emphasis on international best practice.
Presidential Punt
The economic gains are clear.
The country’s gambling market, valued at US$293.93 million (£232.20m) in 2020, is projected to reach US$410.04 million (£323.92m) by 2026 – growing at a CAGR of 5.24 percent in this period.
And most current forecasts haven’t factored in the potentially transformative effect of the new Gambling Regulatory Authority Bill. Even so, analysts estimate the market could reach between US$500 million (£395m) and US$1 billion (£790m) by 2030, with some projecting a CAGR of over nine percent.
In the shadow of the recent economic crisis, that’s a fiscal lifeline the government can hardly ignore.
And the success of Sri Lanka’s casino strategy is very much considered crucial for the country’s President Anura Kumara Dissanayake, who completed his first year in office in September, earning his place on a promise to improve the lives of ordinary citizens.
India’s Macau
Sri Lanka’s regulated industry currently consists of seven casinos, all industry heavyweights: Bally’s Casino, Casino Marina Colombo, Bellagio Colombo, Continental Club, Stardust Casino, The Ritz Club and MGM Colombo.
Last month saw the opening of the country’s eighth, its first integrated resort, City of Dreams Sri Lanka.
The project is a joint-venture costing US$1.2 billion (£948m) between Macau’s Melco Resorts & Entertainment and Sri Lanka’s John Keells Holdings.
With the law promoting gambling investment already in force, experts believe this is just the beginning, expecting the number of integrated resorts, iGaming operators, service providers, game studios and fintech solutions to surge in 2026.
And with visa-free entry for casino whales from India–located just 30 km offshore–Thailand and China, Sri Lanka’s economic woes could soon be in the rear-view mirror.
Melco Chairman and CEO, Lawrence Ho, certainly thinks so, as expressed when he recently voiced what many insiders believe: “Sri Lanka can be to India what Macau is to China.”
In light of India’s recent iGaming ban–a surprise government bill, which wiped off over US$800 million (£632m) in company investments almost overnight–China tightening its anti-gambling stance, ongoing border disputes affecting trade between Thailand and Cambodia and the Philippines’ recent crackdown on iGaming sites, Sri Lanka’s sudden liberalisation feels impeccably timed to make the most of the regional dynamics at play.
Independence
However, some experts, like Colombo-based independent policy think tank, Advocata Institute, have warned that the bill felt rushed and that the GRA appears to lack independence from the Finance Ministry.
The institute stressed the importance of independence, framing it as a matter of regulatory integrity and integral for the market’s success – especially if the country is looking to attract more headline-heavyweights from the gambling industry.
Others have highlighted gaps in suitability criteria for judging licensing applications, harm-minimisation controls, and GRA enforcement powers.
Sri Lanka’s gambling future is currently being written.
How will it shape out?
Watch this space.
